Dubai’s branded residences market is set to see an aggressive expansion, driven by high demand from ultra-high net worth individuals (UHNWIs) – both young and older investors – from India, Europe, Russia, China and the US, who view such properties as both a lifestyle upgrade and a strategic investment, industry experts and analysts said.
The rising wealth accumulation globally, particularly in Asia, combined with the growing pipeline of ultra-luxury branded residential projects, is also triggering the spike in demand for ultra-prime properties in the city.
Sofitel’s first branded house in Dubai, the collaboration between Rove Hotels and IRTH Group, and the world’s first upper luxury standalone regent residences in Dubai by IHG Hotels & Resorts and Sankari are among the slew of new branded projects set to hit the city skyline in the near future.
Branded real estate in Dubai
The surge in demand for branded residences is also projected to push up their pieces by 10-20 per cent from the estimated current average price of about $1,769 (AED6,500) per square foot.
The price, industry insiders said, could even see up to 25 per cent jump, depending on location including waterfront or beach access, or views, brand associations and service levels.
High rental incomes from branded houses in Dubai, predicted to grow at 12 per cent annually by 2026, is cited as another factor which is driving investments in this segment.
Sankey Prasad, Chairman and MD – India and Middle East – Colliers, told Arabian Business: “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.
“Driven by strategic development, exclusivity, and a rapidly growing ultra-prime property market, Dubai has become a magnet for the global elite, including billionaires, royals, and high-profile business magnates”.
Prasad said with this influx of capital and interest, Dubai’s real estate landscape is set to evolve further, marked by unmatched amenities, prestigious locations, and exclusive branded residences that redefine the concept of luxury living.
Sector analysts said Dubai’s ultra-prime market seems to be benefitting in a big way from a global wealth shift, as UHNWIs from Asia and the Middle East are increasingly looking for spaces that reflect their status and personal tastes.
The world’s rich and famous are also seeking security, status, and a unique quality of life, a trend which is smartly encashed by leading regional and international developers, with projects that not only match and go beyond the expectation levels of them, analysts said.
The number of branded residential projects are projected to reach 120 by 2028, as per data from Global Branded Residences.
“The city’s real estate developers go above and beyond with branded residences and collaborations with luxury labels like Bulgari, Four Seasons, and Ritz-Carlton,” an analyst with a Dubai-based global consultancy, said.
“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,” the analyst said.
Colliers’ India and Middle East head said Dubai’s developers have also embraced innovative architectural trends to create outstanding properties to woo the rich and famous.
“Many of these upcoming projects will be visually stunning as they are functional, with waterfront views, private beaches, and rooftop helipads figuring among standard features,” he said.
With added features such as floor-to-ceiling windows for panoramic views, smart home integration, and premium, eco-friendly materials from around the world, developers are catering to the rising requirements of buyers in this segment.
Besides, developers are also increasingly aware of the need to provide complete privacy and instant access to Dubai’s most exclusive cultural and recreational venues, ensuring that convenience seamlessly meets luxury.
Prasad said 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.
The UAE government has also proactively encouraged foreign investment in high-value real estate by allowing foreign ownership in freehold zones and establishing initiatives like the Golden Visa, offering long-term residency options to investors, he said.
Prasad said: “Such initiatives create a stable, welcoming environment for global billionaires seeking investment security and luxury.
“Moreover, Dubai’s political stability and emphasis on international trade make it an ideal base for UHNWIs, many of whom maintain residences worldwide”.
Industry players said Dubai’s emphasis on creating lifestyle hubs for UHNWIs by way of the rising number of private island developments and gated communities, offering exclusivity and community, is also adding to the charm for cash-rich investors.
Some of these ultra-prime neighbourhoods feature curated amenities such as members-only clubs, fine dining, and luxury retail spaces, often on par with cities like Monaco or Miami.
Prasad said as Dubai continues to push boundaries, the future of its ultra-prime property market looks promising.
He said: “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.
“For the global billionaire, Dubai is more than just a city; it is a lifestyle that celebrates the finest in architecture, design, and service and fulfils the growing demand for ultra-prime properties, shaping the next chapter of luxury living”.
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