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But what makes branded properties such a draw? Here are five compelling reasons why opportunities abound at residences bearing famous hotel or designer brands. From built-in buyers to economic resilience, see why branded residences continue shining as investors flock to Dubai.
What are Branded Residences?
Branded Residences are properties associated with famous hotel or luxury brands. These are hotels that also offer homes you can buy. When you buy a branded residence, you are buying into the luxury lifestyle of that brand. The brand helps design the homes and runs the amenities.
Some examples are Four Seasons Residences or Bulgari Residences . These let you live in a home designed by famous architects and designers. But you also get access to top services from the brand. Maybe it's room service or a private beach. You might find tennis courts or a spa too.
The brand name is a big selling point. It means premium finishing, best-in-class management and a certain status. Who doesn’t want to say they live at the Ritz Carlton or Mandarin Oriental?
With your brand new home, you become part of an exclusive club. Other homeowners share your impeccable taste. Best of all, you never have to leave the luxurious five-star hotel lifestyle even when at home.
Triple Win Formula
Usually, a branded residence comes from a smart partnership. The hotel brand and developer team up to create something special.
The brand brings its world-famous name and expertise in design. They help choose architects and make sure every detail feels like them. In return, the developer pays them a fee for using the brand.
Together, they decide on the layouts, amenities, and management style. Then, the developer handles construction while the brand sets service standards for when it's done.
This whole setup means everyone comes out winning. Here is how it is:
For The Developer:
- Competitive advantage in the market
- Larger client base, including brand enthusiasts
- Design and marketing assistance
- Higher price premiums
For The Brand:
- New source of revenue
- Increased brand awareness
- Strengthened client relationships
For The Client/Buyer:
- High-quality finishings and management
- Higher capital appreciation potential
- Higher rental yields if used for short term rentals
- Prestige and status from brand name property
Simply said - the developer sells more, the brand makes money, and you get to live your best life in your dream home away from home! A true triple win if there ever was one.
5 Reasons Why Branded Residences Shine In Dubai
We already know about the What is Branded Residences. Let’s explore why brand residences in Dubai are a new attraction in the Dubai real estate industry.
Branded Residence Market in Dubai
Dubai has seen tremendous growth in branded residences. Consultants predict the number of branded residences will more than double within five years. In the past five years alone, the growth in the sector has been 122%, rising from 23 projects to 51 today.
Dubai has positioned itself as a global hub for luxury living. Residents enjoy exclusive access to five-star facilities without hotel crowds. Properties routinely fetch premiums of 50% or more over non-branded units. That's right, just having a famous name attached can significantly boost your property's value.
Within five years, the sector has exploded from just 23 projects to over 50 today. That's a 410% increase over a short time. And the growth doesn't stop - with over 70 new projects planned, you'll have many new options to choose from.
In Dubai, branded residences from Armani, Bulgari, and Mandarin Oriental now offer luxury living with iconic style. You'll find these premium homes located in areas like Downtown Dubai , Dubai Marina and Palm Jumeirah for amazing city or beach views. Now, you can experience a good life through these sought-after developments.
Key Reasons To Shine
Dubai's leadership knows the value of luxury brands for attracting wealthy buyers from around the world. No doubt this hot market will keep booming as more developers tap into the demand. Let’s explore the key reasons.
1. Rising Demand
The demand for branded residences in Dubai is high, and the numbers affirm this. Currently, as high as 69% of high-net-worth individuals have been revealing a strong interest in owning a branded property. This is a vast increase from 59% asking a year ago.
Already, Dubai boasts the largest number of branded residences in the world. More are, however, being introduced — more than 5,000 units are currently in development pipelines. In recent years, the sector has been expanding worldwide by an astronomical 160%. But Dubai is at the forefront of the pack.
These are telling statistics which further signify how the branded residence sector is going supernova and is a real good investment proposition. If we talk of demand, it is going to touch newer highs in the years to come. So, by investing now, you are actually ensuring that your asset will appreciate colossally.
2. Luxe Living Spaces
The pandemic shape-shifted the craving and appetite of luxury property buyers. Nowadays, discerning investors express their appetite for large and airy living spaces that connect with nature, high-tech conveniences, wellness features, and ample space for relaxation or entertainment.
Branded residences in Dubai tick all these boxes. Indeed, the work-with-nature designs, coupled with vast windows, seamlessly merge the indoor and outdoor areas of the apartments, leading to breath-taking pools or terraces. State-of-the-art smart home tech, gyms, spas, and many eateries are part of the experience, too.
Homes that fit into contemporary living demands like a glove; their alignment with lifestyle needs further cements their popularity with ultra-high-net-worth buyers.
3. Associations With World-Famous Brands
Imagine owning a home designed by Armani or operated by the respected Dorchester Collection. Or one's residential tower is known as Bulgari, Kempinski, or Six Senses. That is the unparalleled cachet—unrivaled—of a branded residence.
International hotel groups and luxury brands are known to sweat every detail. So, expectations must be heavily set on quality standards in terms of development, materials, furnishings, amenities, services, and even locations. This name brand actually can be such a source of deep peace of mind for investors. Generally , Dubai per sq.ft ranges between AED 800 to AED 2500. But this number becomes too high with a brand association. Here are the numbers
| Brand | Average Price Per Sq.ft |
|---|---|
| Four Seasons | AED 10,148 |
| Mr. C | AED 9,678 |
| Bulgari | AED 9,217 |
| Royal Atlantis | AED 7,520 |
| Jumeirah | AED 6,282 |
| Dorchester | AED 6,200 |
| Six Senses | AED 5,528 |
| Ritz Carlton | AED 4,850 |
| Raffles | AED 4,751 |
| Cavalli | AED 4,700 |
Plus, there's of course the bragging rights and elevated social status that come from being affiliated with such a high level of brand names. Put another way, behind the ironclad associations of the world's most respected companies, branded residencies are luxuriously lived in.
4. Significantly Higher Yields & Capital Growth
To walk the talk with numbers, analysis shows that on average, Dubai's prime-end branded developments enjoy yields that gross up to 100% over non-branded options. Data to this effect shows also that they are equally benefiting from a more substantial capital appreciation due to the prestige that goes with their names. Here is the pricing difference between branded and non-branded residences in the most popular area in Dubai.
Average Price and Price Difference per Square Foot of Branded vs. Non-Branded Residences
| Community | Branded | Non Branded | Average Price Difference |
|---|---|---|---|
| Umm Suqeim | AED 16,038 | AED 967 | 177% |
| Jumeirah 2 | AED 9,931 | AED 5,541 | 56% |
| Palm Jumeirah | AED 4,416 | AED 3,049 | 36% |
| Dubai Harbour | AED 3,746 | AED 3,284 | 13% |
| Pearl Jumeirah | AED 3,638 | AED 770 | 130% |
| Downtown Dubai | AED 3,137 | AED 2,348 | 28% |
| Business Bay | AED 2,946 | AED 1,940 | 41% |
| Dubai Marina | AED 2,745 | AED 1,750 | 44% |
While branded residences at the very top tier have risen in value by an average of 154% over the past decade, compared with the market-wide figure of 100%, clearly these world-class homes outperform their mainstream counterparts not only in terms of rental returns but also in terms of values.
According to Rosa Piro, senior business development director at Arada, told The National. “We're bullish on the outlook for the branded residences market in both Dubai, which is already well-established in this segment, and Sharjah, where we’ve led the market by working with Vida and Rove to launch the first branded homes in the emirate,”
For additional evidence, consider the premium prices branded residences command. Reports estimate the average rate per square foot at AED 2,721—a full 37% higher than regular luxury homes. Put another way, branded property consistently equates to significantly enhanced returns and long-term capital appreciation.
5. Surging Interest Pushes Up Prices
Let's circle back to the fast escalation in demand noted earlier. With more high-net-worth buyers clamoring for a slice of the branded residence pie, it piles even more pressure on an already highly limited supply. Consequently, prices keep rising.
Of course, and it continues to go in that direction with growing interest. As a result of this imbalance between supply and demand, it is almost guaranteed that investors will realize remarkable returns from the resale or lease in the future.
In a nutshell, growing interest and appetite for luxury branded living spaces have the potential to ensure that the real estate sector gets into the bottom line. So, by getting your asset now, you are ensuring that you have a wise and future-proof move.
Top Branded Residence in Dubai You Can Check Out
| Name of the project | Developer | Brand Association | Location |
|---|---|---|---|
| Armani Beach Residences | Arada | Armani Group | Palm Jumeirah |
| Bugatti Residences | Binghatti | Bugatti Automobiles | Business Bay |
| Karl Lagerfeld Villas | Taraf | Karl Lagerfeld | Nad Al Sheba - Meydan |
| Bulgari Lighthouse | Meraas | Bulgari | Jumeirah Bay Island |
| Damac Altitude de Grisogono | Damac Properties | De Grisogono | Business Bay |
| Aeternitas by Londongate | London Gate | Franck Muller | Dubai Marina |
| Mercedes-Benz Places | Binghatti Properties | Mercedes-Benz | Downtown Dubai |
| Address Residences The Bay | Emaar | Address Hotels and Resorts | Jumeirah Bay Island |
| Six Senses Residence | Select Group | Six Senses Hotels Resorts Spas | Dubai Marina |
| Orla by Dorchester Collection | Omniyat | Dorchester Collection Spas | Palm Jumeirah |
| Kempinski Residences The Creek Dubai | Swiss Property | Kempinski Hotels Spas | Al Jaddaf Area |
| St. Regis The Residences | Emaar Properties | St. Regis Hotels & Resorts | Downtown Dubai |
| Atlantis The Royal | Kerzner International | Atlantis Resorts | Palm Jumeirah |
| Beachgate By Address | Emaar | Address Hotel and Resorts | Palm Jumeirah |
| Palazzo Versace Residences | Enshaa | Versace | Culture Village, Al Jaddaf |
| BV Residences (Bvlgari Resorts and Residences) | Meraas | Bvlgari Hotels | Jumeirah Bay Island |
| DAMAC Bay by Cavalli | DAMAC Properties | Cavalli | Dubai Harbour |
| Burj Binghatti Jacob & Co Residences | Binghatti Properties | Jacob & Co | Business Bay |
| Ritz Carlton Business Bay | Khamas Group | Ritz Carlton | Business Bay |
| Four Seasons Private Residence Dubai | H&H Development | Four Seasons Hotel | DIFC |
| Palm View by Avani Hotels & Resorts | Binghatti Properties | Avani Hotels and Resorts | Dubai Media City |
The Takeaway
Dubai's branded residences bring together luxury living, internationally renowned hotel management, and smart investment potential. These prestigious properties promise:
- Booming demand signaling prosperous prospects
- Alignment with contemporary lifestyle preferences
- The quality assured by luxury brands
- Far higher rental yields and asset growth
- Ever-intensifying interest in rising prices daily
Quite simply, Dubai's branded sphere offers investors one of the most exciting opportunities in the real estate market. The numbers, data and facts all align - branded is best. So why not give your portfolio the elite edge it deserves? Reach out now to explore the exceptional world of luxury branded residences waiting for you.
