DUBAI'S BRANDED RESIDENCES BOOM: PRIME INVESTMENT WITH HIGH RETURNS AND LUXURY APPEAL

The demand for branded residences in Dubai is rising quickly. This growth is driven by increasing wealth, greater mobility and a desire among wealthy investors to diversify their property holdings. Dubai currently has the most branded residences in the world reflecting a 160% global increase in this sector. The UAE is second only to the US in terms of new developments with 17,000 units in operation and another 5,000 in the pipeline. This trend indicates a strong and promising investment opportunity.

One of the main attractions of branded residences is their potential for high returns. These properties offer guaranteed returns on both rental income and resale value making them a secure investment choice. Premium brands command higher rental prices and due to high demand, branded residences maintain their value better than conventional real estate. Investors can expect an appreciation of about 20% and an average return on investment ranging from 6.5% to 9% depending on whether the property is used for long-term or short-term rentals.

Branded residences benefit from the reputation of their international brands. Owning one is like owning a luxury car, with quality, style and service that match the brand’s standards. This reliability and prestige provide peace of mind to buyers making these residences a smart long-term investment. Renowned brands ensure prime locations, superior design and top-notch construction quality enhancing the overall value and appeal of these properties.

Projects associated with luxury brands adhere to higher standards than typical real estate developments. Luxury brands carefully control the design, construction and amenities of their projects to ensure they reflect the brand's identity. This meticulous attention to detail means that branded residences feature prime locations, superior architecture and high-class furnishings adding to their overall value.

The post-pandemic world has seen a 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 features that promote relaxation and well-being. The technology and innovation-friendly environment of these properties make them 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.

According to a Knight Frank report, Dubai’s branded residences have emerged as a top choice for high-net-worth individuals worldwide. The data reveals that 69% of high-net-worth individuals are now interested in owning a branded property in the city, up from 59% in 2023.