Branded real estate projects in Dubai are characterised by high returns on investment, prestige and attracting high net worth investors.
Investing in Dubai real estate has always been attractive, but branded residences offer a particularly compelling opportunity, according to developer MERED.
These luxurious properties combine high-end amenities, sophisticated design and architecture, superior service, and robust security, setting them apart from traditional real estate.
Branded real estate in Dubai
In fact, Dubai’s branded residences are increasingly popular among high-net-worth individuals worldwide, with 69 per cent expressing interest in owning such properties, up from 59 per cent in 2023, according to Knight Frank.
Diana Nilipovscaia, CEO of MERED, highlights five key aspects valued by buyers of branded residences in Dubai:
Rising demand: The demand for branded residences is growing rapidly, driven by rising affluence, increased mobility and the desire of wealthy investors to expand their property portfolios.
Dubai is home to the highest number of branded residences worldwide, in line with the 160 per cent global growth in the sector.
The UAE is also second behind the US for the biggest development pipelines for branded residences, with 17,000 units currently in operation and 5,000 more in development. This growth signals a robust investment opportunity with a promising future.
High returns: Branded residences offer “guaranteed” returns, whether for rent or resale, making them a secure investment choice. Premium brands translate to premium rental income.
Due to their limited supply and high demand, branded residences maintain their value better than conventional real estate.
They can appreciate by approximately 20 per cent and offer an average return on investment ranging from 6.5 per cent to 9 per cent, depending on whether they are utilised for long-term or short-term rentals. This ensures strong capital appreciation upon resale as well.
International brand heritage: Just like a branded handbag or luxury car, a real estate product with an international resort brand consistently delivers quality, fashion, and style in keeping with the reputation and standards of international brands.
These projects promise consistent quality, management, and service, regardless of location, in comparison to conventional luxury residences, which domestic or international real estate developers often develop themselves.
This reliability, prestige, familiarity and trust in these brands provide peace of mind to buyers, making it an attractive long-term investment.
Intrinsic brand value: Being associated with a prestigious global brand means that the project meets higher standards than typical real estate developments.
Luxury brands closely control design, construction, and amenities in their projects, ensuring everything aligns with their brand identity. The involvement of renowned brands ensures prime locations, superior design, and construction quality right in the city centre.
Analysis by Savills shows that the cost of developing a branded real estate project is higher due to high-class furniture standards and extensive exclusive amenities, making these properties more valuable.
Luxury living spaces: Post-pandemic, there has been a significant shift towards properties that offer open living spaces, wellness amenities, and private facilities.
Branded residences cater to these needs with stunning views, exquisite cuisine, wellness spas, retail activities, and other attractive features that promote relaxation and well-being.
The technology and innovation-friendly environment make these properties ideal for modern living, combining luxury with convenience.
This alignment with current lifestyle trends ensures that branded residences remain a desirable choice for discerning investors.
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