Dubai's Branded Residences Boom: Luxury Demand Surges 96% Amid Global Investor Interest
April 29, 2025
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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Arabian Business • Apr 28, 2025
Dubai real estate: Branded residences to double as demand surges, buyers ready to pay 69% premium - Arabian