Dubai is solidifying its status as a global hub for luxury branded residences, having experienced an impressive growth rate of 160% within the last decade. According to a report from Betterhomes titled “Branded Residences, Dubai vs The World,” which was obtained by local media, the emirate has become a worldwide center for this type of real estate, surpassing cities like Miami, London, Phuket, Florida, and Sao Paulo. This success is attributed to a combination of an attractive regulatory environment and collaboration between local developers and renowned global brands.
In 2024 alone, Dubai recorded over 13,000 sales of branded residences, marking a 43% increase from the previous year, with total transaction values reaching 60 billion dirhams, which accounts for 8.5% of all real estate dealings in the emirate. The number of completed projects in this sector is projected to rise to 140 by 2031, indicating ongoing momentum in the luxury market.
Data shows that buyers and investors are willing to pay a premium of 40% to 60% for residences featuring high-end branding compared to non-branded properties in the same locations, reflecting the symbolic and commercial value of these projects.
Christopher Cena, Sales Director at Betterhomes, remarked, “We’re seeing that affluent buyers are now looking beyond just properties; they’re investing in a lifestyle, brand value, and long-term growth. Dubai offers these three elements, which is why it outperforms established real estate markets like London and Miami.”
As noted in the report, this branding trend is no longer confined to hotels, but has expanded to include names from the automotive, fashion, and luxury hospitality sectors. Notable projects include the “Bugatti Residences” developed by Binghatti in the Business Bay area, priced at an average of 6,000 dirhams per square foot with a premium of 237%. This premium indicates that the price per square foot in this project exceeds that of typical properties in the same area by 237%, highlighting the added value attributed to the luxury brand associated with the residence.
Other projects include the “Armani Beach Residences” by Arada, priced at 8,000 dirhams per square foot with a premium of 220%, and the “Bulgari Residences” on Jumeirah Bay, at 10,500 dirhams per square foot with a premium of 166%. Additional projects include the “Binghatti Jacob & Co Tower” at 20,000 dirhams per square foot with a premium of 280%, and the upcoming “Mercedes Benz Places,” expected to be completed in 2026.
Leading real estate developers like Binghatti, Arada, and Select Group, alongside major names such as Emaar, Meraas, and Nakheel, are embracing this new property model through strategic partnerships with global brands including Bugatti, Armani, Mercedes, and Raffles.
Dubai’s Advantage
The report indicates that Dubai is more attractive than Miami and London in terms of taxes, regulations, and return on investment. For instance, in Miami, a unit in the “Aston Martin Residences” is sold for 25,000 dirhams per square foot with a staggering premium of 525%, but comes with high tax rates. In London, “The OWO Residence” is priced at 20,000 dirhams per square foot, yet the taxing environment and regulations limit its appeal.
In Thailand, projects like “Banyan Tree Residences” exist, but low liquidity and returns restrict market attractiveness. In contrast, Dubai offers 100% ownership for investors, exemption from income tax, and long-term golden residence permits, fostering confidence and stability.
Middle East Outlook
Forecasts suggest that the Middle East and North Africa will capture 25% of the branded residences market by 2030, with Dubai leading as the top destination. By that time, the number of projects in the region is expected to exceed 360, driven by growing demand from high-net-worth individuals.