The demand for branded residences in Dubai is witnessing an unprecedented surge, with international investors increasingly viewing these properties as both a lifestyle upgrade and a strategic investment. Market experts predict that this trend could lead to a significant price hike of 10-20%, with some properties potentially seeing a 25% increase depending on location and amenities.
Dubai’s reputation as a hub for ultra-luxury living continues to attract ultra-high net worth individuals (UHNWIs) from across the globe, including regions such as India, Europe, Russia, China, and the United States. These investors are drawn by the city’s innovative real estate offerings, which are strategically designed to meet their high standards of exclusivity and opulence.
New Projects Boosting Supply
Several upcoming branded residential projects are set to redefine Dubai’s skyline. Among these are Sofitel’s first branded house in Dubai, a collaboration between Rove Hotels and IRTH Group, and the world’s first standalone Regent residences by IHG Hotels & Resorts and Sankari. These developments highlight the city’s commitment to expanding its portfolio of ultra-luxury properties.
According to industry insiders, the average price for branded residences in Dubai currently stands at approximately $1,769 (AED 6,500) per square foot. The anticipated price surge is attributed to prime locations, such as waterfronts, brand associations, and superior service offerings. Rental incomes from these properties are also expected to grow at a rate of 12% annually by 2026, further incentivizing investments.
Insights from Industry Leaders
Sankey Prasad, Chairman and MD – India and Middle East at Colliers, emphasized Dubai’s transformation into a global luxury destination. He stated: “Dubai has long held a reputation for extravagant luxury and bold architectural innovation. But, of late, the city has elevated its real estate offerings to a new luxury tier, establishing itself as a prime destination for the world’s rich and famous.”
Prasad also highlighted the influx of capital and interest shaping Dubai’s real estate landscape, marked by unmatched amenities and prestigious branded residences.
A Growing Market for the Elite
Data from Global Branded Residences projects that the number of branded residential developments in Dubai will reach 120 by 2028. The city’s developers are collaborating with luxury brands such as Bulgari, Four Seasons, and Ritz-Carlton to deliver properties that promise global prestige, bespoke customisation, and unparalleled exclusivity.
A Dubai-based analyst noted: “These branded properties offer the security, service, and global prestige that UHNWIs require, in addition to a degree of customisation and exclusivity that was once reserved for the world’s most exclusive hotel suites.”
Tailored for Opulence
Developers are incorporating innovative architectural trends to appeal to high-net-worth buyers. Features such as waterfront views, private beaches, rooftop helipads, floor-to-ceiling windows, and smart home integration are becoming standard. The use of premium, eco-friendly materials and a focus on privacy further enhance the appeal of these residences.
Prasad outlined Dubai’s unique allure, saying: “Dubai’s appeal to UHNWIs stems from various factors: its unique blend of economic stability, favourable tax regime, and geographic positioning as a gateway between the East and the West.”
Government Initiatives
The UAE government’s initiatives, such as allowing foreign ownership in freehold zones and introducing the Golden Visa program for long-term residency, have created a stable and welcoming environment for international investors. These measures have strengthened Dubai’s position as a preferred destination for global billionaires seeking security and luxury.
Looking Ahead
With the rising number of private island developments and gated communities, Dubai continues to solidify its status as a premier destination for the global elite. These ultra-prime neighbourhoods offer curated amenities such as members-only clubs, fine dining, and luxury retail, rivalling iconic cities like Monaco and Miami.
Prasad concluded: “With a steady influx of UHNWIs investing in the city’s burgeoning ultra-luxury real estate, Dubai has firmly established itself as an elite destination, one that has mastered the art of combining opulence with practicality, exclusivity with accessibility, and luxury with a sense of belonging.”
