The Rise of Branded Residences in Dubai
Since the debut of Armani Residences in Burj Khalifa back in 2010, Dubai has rapidly become a global leader in the branded real estate market. According to a report by Global Branded Residences (GBR), this sector has experienced substantial growth, expanding by an impressive 122% over the past five years—from 23 to 51 projects. This remarkable expansion highlights Dubai’s status as a premier destination for branded residential developments, drawing in investors and buyers from around the globe.
What Are Branded Residences?
Branded residences are luxury properties developed in collaboration with globally recognized brands. While initially dominated by major hotel chains offering serviced apartments with hotel-like amenities, the market has evolved to include partnerships with luxury brands from industries such as jewelry, fashion, and automotive. Some of the most notable branded residences in Dubai include Bulgari Resort and Residences, Cavalli Tower, Mira Villas designed by Bentley Home, and Trussardi Residences. These properties stand out for their unique blend of luxury, exclusivity, and brand prestige, often featuring fully furnished interiors, bespoke services, and exclusive amenities.
Why Branded Residences Appeal to Buyers
One of the key attractions of branded residences is the guarantee of quality and service. According to research from Savills, branded residences can command a rental premium of up to 31% compared to non-branded projects, making them particularly attractive to investors. These properties also tend to appreciate well over time, offering profitable resale opportunities and appealing to long-term buyers seeking stable investments.
As Mira Real Estate founder and CEO Tamara Getigezheva explains, “The partnership between brands and developers is reshaping the real estate landscape, creating unique living spaces that blend luxury with brand prestige. Brands often play an active role in overseeing construction, furnishings, and maintenance to ensure the final product meets and retains their high standards.”
Investment Potential and the Rental Market
The demand for branded residences in the UAE is expected to grow steadily, driven by an increasing number of affluent buyers and a dynamic real estate market. An analytics report by JLL MENA forecasts that the branded residences market will expand by 15% by 2025. This growth reflects a broader trend of rising interest in luxury living spaces that align with the values and prestige of global brands. With the perceived value of these residences elevated, they attract clientele willing to pay a premium for quality and exclusivity.
This trend also extends to the rental market, where properties associated with prestigious global brands are particularly appealing. “For investors, this means attracting a certain caliber of tenants,” says Tamara. “As more wealthy individuals seek distinctive and luxurious living spaces, the demand for branded residences for rent is set to rise. Those investing in these apartments and villas will easily find high-ticket tenants. Although the number of branded residences is increasing, they still comprise only a small portion of the overall Dubai real estate market. However, with our extensive experience in this segment, Mira Real Estate can offer investors a wide range of options, from affordable luxury to ultra-high-end properties, including exclusive listings not available on the regular market.”
Challenges and Opportunities in the Branded Residences Sector
Despite the robust growth, the branded residences sector is not without its challenges. The exclusivity and high standards associated with these properties require significant investment in design, construction, and maintenance. Developers and brands must continually innovate to differentiate their offerings in a competitive market. However, these challenges also present opportunities for those willing to adapt and innovate. By leveraging cutting-edge technology and sustainable practices, developers can create residences that appeal to environmentally conscious buyers. Additionally, expanding collaborations with diverse industries, such as art and technology, can enhance the appeal of branded residences to a broader range of buyers and investors.
The Future of Branded Residences in Dubai
Dubai’s branded residences market continues to thrive, driven by a combination of luxury, quality, and brand prestige. As the sector evolves, it is likely to attract more attention from both local and international clients, solidifying Dubai’s reputation as a hub for luxury real estate. With a focus on quality and sought-after lifestyle patterns, branded high-end living spaces offer more than just a place to live—they provide an experience intertwined with identity and appealing values. Given the limited supply and naturally growing demand, these properties are likely to remain among the most solid investment assets in the market for the foreseeable future.