Dubai is a city which has been defining luxury and setting new standards when it comes to branded luxury residences. Dubai’s real estate market is currently experiencing high demand with low supply, creating the perfect environment for significant returns on investment. This is especially true for luxury real estate in Dubai’s branded residences, which are in greater demand due to their association with world-renowned brands and their promise of luxury living. As the market continues to grow, global investors from the USA and Canada are recognizing Dubai as a prime destination for property investing.
Currently Dubai boasts of some of the leading names in the branded residences such as THE ADDRESS HOTEL, The Ritz-Carlton Residences, Bulgari Residences, Four Seasons Private Residence, and Six Senses Residence.
These luxury properties are not just about prestige but they represent a strategic investment decision, with statistics showing that branded residences command up to 69% higher prices per square foot than non-branded properties, leading to higher capital appreciation.
With Dubai’s market dynamics, there’s never been a better time to invest. Branded residences offer a unique opportunity to secure a property in one of the world’s most prestigious markets, where demand outstrips supply, driving up prices and enhancing investment potential.
Speaking if it is the right time to invest was Ghada “GG” Benitez from GG Benitez International, certified international property specialist and Licensed Realtor® who specializes in connecting global real estate investors with Dubai with her offices in California and Dubai said, “The numbers don’t lie. Its basic demand and supply. Based on the demand/supply ration and the future trends, the time is right now to invest in Dubai real estate, overall. Dubai is continuing to have a significant population expansion, to reach 5.9 million by 2040. The city is also constantly positioned as a top global tourist destination. There are many initiatives which the city has taken which will help in drawing top talented high income earners from various industries from around the world, such as in finance and tech. On top of it Dubai is also experiencing a high influx of high net worth investors, with numbers showing a growing segment of millionaires investing in Dubai real estate. With these higher net worth individuals both moving and investing in Dubai, and with the higher projected capital appreciation and rental returns seems in the luxury real estate, this is the time to invest in that segment of the market in Dubai.”
Seen echoing similar sentiment was Romaal Patel, Co-founder, The Property, who said the time is favorable for investing in Dubai’s luxury real estate market, elaborating further she explained, “ The sector is experiencing robust demand driven by high-net-worth individuals, favorable economic conditions, and Dubai’s status as a global luxury destination. Additionally, ongoing infrastructure developments and regulatory reforms are enhancing market appeal.”
Another leading name in the real estate scenario of Dubai, Kiran Khawaja, CEO, Fajar Realty also agreed that branded residences offered better ROI on investment and the time was perfect for investment , “This is the moment without any thought and to yield better ROI.”
Branded Residences Defined
Branded Residences are luxury residential properties associated with renowned brands like Armani, Bugatti or Versace brands which exude elegance and luxury. These properties offer a unique blend of exceptional quality, world class amenities and premium living experience that is world apart.
Snob Value but why Dubai?
Owing these properties is not just about the place to live but it’s about being a part of an elite community. Association with the elite brands elevates property status and appeal not only this they are built to the highest standards, construction quality, design and finishes. As the brands reputation is at stake utmost care is taken as everything is just perfect. These properties are replete with the luxury features like concierge services, spas and gyms, these facilities enhance the living experience but then why should one invest in Dubai. Let’s explore:
- Location Benefits: Dubai is strategically located that bridges east and the west makes it a hub for international business and tourism and branded residences are situated in the prime location such as Downtown Dubai, Palm Jumeriah and Dubai Marina.
- Hike in Demand: According to leading independent real estate consultancy in Dubai Knight Frank branded residences in Dubai have seen 30 percent increase in demand over the past five years. The international buyers are drawn towards the luxury and the exclusivity associated with these projects.
- High Rental Yields: Branded residences in the prime location like Palm Jumeriah and Downtown Dubai have higher rental yields averaging 6-8 percent higher than the market average. Capital appreciation rates are also impressive with annual growth of 8-10 percent. Some of the prime examples are The Address Residences by Emmar which has an annual occupancy rate of 90 percent and annual ROI averaging between 7-9 percent these properties are in high demand with the investors. Emmar is known for iconic projects like Burj Khalifa and Dubai Mall it’s synonymous with luxury and highest standards of construction. Investing in an Emmar property ensures you are investing in a legacy.
Another very good example will be Bugatti Resort and Residences these properties command a price premium of 30 percent over the non-branded properties and achieve rental yields of over 7 percent. Italian brand Bugatti brings its finesse and luxury to the heart in Dubai. Bugatti Resort and Residences on Jumeriah Bay Island offers a unique living experience with exquisite interiors and world class amenities reflecting the brands commitment to luxury and exclusivity.
Next in the line is iconic Palazzo Versace residences they created waves after being sold out just few months of being built they have shown capital appreciation of 10-12 percent annually. The brand known for its style and opulence ensured that every inch of these residences exude sophistication and luxury.
Recently launched Atlantis, The Royal Residences offer luxury and exclusivity on The Palm drew much interest from the international investors courtesy its iconic location and unique design. It drew global attention when Beyonce at its opening event attracting media hype around this project.
Ghada stated that investing in branded residences in Dubai is a smart strategy and only a trusted agent can help you to strategize, “Let’s take a look at EMAAR’s The Address Hotel Residences, for example: we know that they have shown up to 100% capital appreciation upon handover and significantly higher rental returns that non branded residences. The demand is extremely high, and it’s not easy to secure these opportunities, but with the proven track record of success for investors, and the continued trend for demand for branded residences, investing in branded residences in Dubai is a smart strategy but just beware, that not all brands and developers are made equally. This is where it’s vital to work with a trusted agent to help strategize.”
Vindicating her statement was Romaal who said, “Branded residences typically offer superior capital appreciation due to their premium pricing and exclusivity. The 69% higher price per square foot reflects the added value of luxury brands, which often provide enhanced amenities, superior design, and prestigious locations. Investing in branded residences can be a sound strategy for higher returns.”
High Growth Segment
Branded residences market in Dubai is projected to grow by 20 percent annually over the next five years according to Knight Frank. The reason behind this growth is increasing international interest and ongoing development projects in Dubai.
Price Premium
Branded projects in Dubai typically command a premium of 25-30 percent over the non-branded luxury properties. This premium is a testament to the added value of the brand association, high quality standards and superior amenities.
Investor Demographics
Over 60 percent of the buyers of the luxury Branded residential projects in Dubai are international investors from Europe, Asians and North Americans buyers who are attracted by Dubai’s strategic location, tax free status and great standard of living.
Finally summing up Dubai with its very transparent real estate market provides investors with some good real estate investment options but what is equally important to understand which developers to work with, as not all developers are going to provide the same return on investment.
