Dubai's Branded Residences Boom: Luxury Demand Surges 96% Amid Global Investor Interest

April 29, 2025
Dubai's Branded Residences Boom: Luxury Demand Surges 96% Amid Global Investor Interest
  • Brand association is crucial in buyer decisions, with luxury brands like Four Seasons and Bulgari not only offering homes but also a complete lifestyle ecosystem.

  • The premium associated with branded residences saw a staggering 96% increase in the first half of 2023 compared to the latter half of 2022, reflecting heightened demand and valuation.

  • Dubai's flexible land use and fewer constraints compared to major European cities enhance its attractiveness for luxury developers and architects.

  • Developers are also diversifying their partnerships and expanding into new sectors, including fashion and tech, to meet the growing demand for branded residences.

  • Of these, 51 branded residences are currently operational, and an additional 70 are expected to launch by 2028, predominantly in non-hotel segments, indicating a shift in market dynamics.

  • Dubai's branded residence sector is experiencing a remarkable surge, with buyers willing to pay up to 69% more per square foot compared to non-branded properties.

  • This demand is largely fueled by international investors from regions such as Russia, China, India, and Europe, who are attracted to Dubai's tax-free environment and political stability.

  • High-net-worth individuals (HNWIs) are the primary buyers, drawn by the luxury lifestyle and the city's stable environment, with projections indicating a 30% increase in ultra-high-net-worth individuals (UHNWIs) by 2028.

  • Branded residences appeal to both investors looking for secure assets and end-users seeking luxury living, with personalization and bespoke services becoming increasingly essential.

  • In 2024, over 13,000 branded units were sold, marking a 43% increase from the previous year, which underscores the robust growth in this market.

  • Currently, Dubai boasts more than 132 branded developments totaling over 43,000 units, with expectations that this number could more than double by 2031.

  • This trend is not limited to Dubai; Saudi Arabia is also witnessing a surge in demand for branded residences, with significant investments planned in the sector, reflecting a broader regional trend.

Summary based on 1 source


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