Branded Residences: The Rising Stars of UAE Real Estate

The UAE real estate market in recent years is growing. The growth here is a result of both unique concepts and innovation that other housing segments are not implementing. Branded residences are one of the most noted trends. Created in partnership with high profile brand names, these upscale properties are grabbing buyers’ attention with their unique offerings of features and an impeccable lifestyle.

The property landscape is being transformed by branded residences. They are focused on the aspirations of affluent homebuyers and investors to buy or invest in luxury, distinction and an investment. In this article we look at why branded residences are the new kids on the block in the UAE real estate market, how they are impacting it – and what that means for buyers, investors and developers.

Branded Residences in Dubai: Luxury Real Estate Trends Highlighted with 95Dubai.com Branding

The topic of branded residences is now on the rise

Branded residences are luxury real estate with an iconic brand association. Alongside with the prestige of the global naming, they combine the appeal of upscale property. Branded residences are emerging as a hub in the UAE with the two cities leading the way, Dubai and Abu Dhabi. Brands include Armani, Ritz Carlton and Versace among others who lead high profile projects. It is driven by the UAE’s attempts to diversify its economy and continue to be a top center for luxury living.

Knight Frank reported that globally, branded residential units rose by 230 percent from 2010 to 2022. It’s noteworthy in terms of the growing interest in this niche market. Over 40 branded residential projects are in Dubai alone. This number will be increasing drastically over the coming years. International buyers come from abroad looking for a second home but also investors looking to rent in the luxury market.

Why Branded Residences are such a hit?

There is an appeal to branded residences for their special selling points. Exclusivity, high end amenities and supporting gamut of a well known brand makes them stand out. Customers buy into a branded residence, not only a property. Buying into a lifestyle of premium experiences, bespoke service, a certain level of prestige already.

Range of amenities and services is one thing that separates branded residences from other properties. They cover concierge services, spa facilities, horse stables, private pools, high security systems and many more. That creates a hotel like living. For example Emaar who in conjunction with Armani and Address has set the benchmark for luxury. They bring together signature hospitality elements that combine the home comforts and hotel luxuries in their residences.

The Investment Angle

Branded residences present compelling reasons for investors. By carrying a premium price tag most of these properties are priced 20-30% above non branded equivalents and can enjoy higher rental yield and capitalize on long term appreciation. A branded residence, with its internationally recognized name, typically holds its value — and sometimes increases it — more than a standard luxury property. Savills’ research found branded residences can add up to 35 per cent to a property’s value when compared to a property of the same size, located in the same area but with no external brand association.

The perceived and real value of the brand is largely the reason for this premium. Properties are being bought and rented for more if linked with their favored luxury brands. Specifically, this is extremely true when these properties bring along with them features with which to add to comfort and social standing. The capital cost of operations for opening a motel is also quite attractive to investors. So branded homes with elevated lifestyle become a demand among international executives and high net worth individuals.

The Buyer Experience: A Lifestyle Purchase

It’s not just about pure luxury. It’s about spending money for the experience. Lifestyle comes wrapped in branded services, exclusivity, and design aesthetics in branded residences. The fact that these properties are in a different league making them different from other luxury projects. The Bulgari Residences in Dubai, for example, do far more than offer their residents luxurious accommodation: they offer access to exclusive yacht clubs and curated events. Branded residences are appealing precisely because this type of value added experience is a must among discerning buyers.

These properties also possess strategic locations. Prime areas are most developed for most branded residences. Through this, residents are always close to key attractions, business districts and luxury retail spaces. In cities such as Dubai, where location matters so much for the desirability of a property, this positioning provides a huge leg up for branded residences.

The branded residence sector in the UAE is however, also set to continue growing looking ahead. More developers are eager to enter into partnerships with new and diverse brands beyond the usual hospitality industry. Thus includes areas like fashion, automotive and even technology. Its diversification is intended at bringing in a wider audience. There is focus on niche preferences and enables more accessible branded residences to younger, affluent buyers.

However, challenges remain. Although the claim to premium pricing makes exclusivity a marker, it also limits the buyer pool. In certain areas, these developments may be market saturated and may dilute the believed uniqueness of them. To stay competitive, developers and brands will have to be innovative continually. For example, they may look at sustainability, smart technology and more integrated community experiences.

Branded residences represent a significant shift in luxury real estate. They blend high-end living with lifestyle aspirations. This trend is transforming the UAE’s property market, providing buyers and investors with unique opportunities. Whether you’re looking for a home that exudes luxury or an investment that promises returns, branded residences are certainly a phenomenon worth exploring.

References

Gulf Business. Branded Residences: Stars of UAE Real Estate. Gulf Business, 2024.
Knight Frank. Global Branded Residences Report. Knight Frank, 2023.
Savills. Branded Residences: An Investment Worth Considering. Savills Research, 2022.
Emaar Properties. Luxury Living with Armani and Address. Emaar Properties, 2023.