Dubai Leads the Global Branded Residence Boom
The last ten years have seen global branded residences grow by 160 percent around the world, transforming the way global investors view luxury property. Dubai is at the epicentre of this shift already having completed over 61 branded residence projects Dubai and over 100 under development, as mentioned in the PRIME by Betterhomes report. The emirate is currently on its way to providing over 140 branded residences 2031 by the year 2031, which is firmly cementing its reputation as the epicentre of branded luxury living in the world.
The uniqueness of Dubai branded residences is not only the size of projects, but also the high quality of performances of these properties. Branded residences in Dubai are on average more expensive than non-branded ones in the same neighborhood by 40 percent. This is why the city is a magnet to end-users and investors globally as this combination of global prestige, high capital appreciation, and lifestyle appeal is a magnet to them.
Dubaiโs Dominance in Branded Residences
The number of branded residence developments is estimated to reach 1,400 across the world by the year 2030, with the MENA region accounting 25 percent of the total. Dubai is far ahead of the rest of the global hubs, such as Miami, London, and Phuket.
At present, there are more than 50 branded residence projects completed in Dubai and the value of transactions is increasing. The developers do not stop at the boundaries and are launching new ones, offering the world-class design and services that can raise the living standards and confirm the reputation of Dubai as the global center of luxury branded living.
Why Are Branded Residences Booming in Dubai?
The attraction of branded residences is much more than just the name of luxury hotel brands. What is becoming attractive to buyers:
- Quality you can trust: High-quality hotel and lifestyle brands guarantee quality of construction and service.
- High-end Design: Structurally elegant designs that suit high-end lifestyles.
- Security and Prestige: Exclusive living environments with high end amenities.
- International brands: Properties with international brands are prestigious and have high resale value.
These have contributed to the quicker sale, good retention, and even stable rental returns over the traditional luxury real estate.
Premium Value and Investor Appeal
Branded residences in Dubai have a price premium of 40 percent. This is not only a luxury, but a good fundament:
- High Rental Yields: Supported by the robust tourism and expat driven economy in Dubai.
- Resale Value: Branded properties are consistently better than non-branded homes.
- Capital Appreciation: Increasing number of high-net-worth individuals is a continuing trend that adds long-term demand.
Coupled with 100 percent foreign ownership, zero income tax, and long-term Golden Visas to investors, Dubai is an unrivaled value over other luxury destinations. In reality, the Betterhomes report indicates that the Dubai real estate market is more affordable than Miami, more tax friendly than London and has greater growth potential than Phuket, three of the strongest branded residence marketplaces in the world.
Key Drivers of Dubaiโs Real Estate Market
Several factors explain Dubaiโs dominance in branded residences:
- Far-seeing government policies: Promote foreign investment.
- Friendly business environment: Low taxation.
- Powerful developer community: Delivers iconic projects on a regular basis.
- HNWI demand: The increasing number of HNWI population driving the demand of high-end houses.
- International accessibility: Dubai as a center of luxury, tourism and business.
Such drivers make the branded residence segment sustainable in the long-term and make Dubai the leader in this niche.
Top Branded Residence Projects and Brands
Dubai is home to a wide range of branded residences related to luxury brands including:
- Armani Residences in Burj Khalifa.
- The Ritz-Carlton Residences on the Dubai Canal.
- Bulgari Residences on Jumeirah Bay Island.
- One & Only Private Homes at One Za abeel.
- The Dorchester Collection Residences Business Bay.
Future projects will only add to this list with more international names joining the Dubai market, further cementing the city as an international destination to international buyers.
