Dubai’s branded residences market is booming, new data shows.
Transaction volumes for branded residences surged by 44 per cent in the first half of 2024 compared to the same period the previous year, according to the H1 2024 Dubai Branded Residences Report from Morgan’s International Realty.
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‘This reflects a significant increase in demand and investor confidence in this niche market,’ explains Elias Hannoush, managing director, Morgan’s International Realty. ‘Additionally, the total value invested in branded residences has seen a 25 per cent increase compared to the previous year, further underscoring the robust performance and growing appeal of these luxury properties.’
The rise of branded residences
In 2010, ArmaniResidences in Burj Khalifa became the first branded residences to open in Dubai. The city has since become a world-leader in this sector of the prime property market.
International hotel giants Dorchester Collection, Jumeirah Hotels and Six Senses Hotels & Resorts, and luxury heavyweights Bulgari, Baccarat and Bugatti, are among those who have already established a property footprint, and there is a steady stream of future developments in the pipeline.
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The number of residences has grown from 69 in June 2022 to 121 in June 2024. Seventeen new residences were added in the first six months of this year alone. This brings the total number of units to 39,046, ranging from palatial penthouses to beachfront villas.
A price premium
In the first six months of 2024, 5,592 units across all types of branded residences were sold, worth a total of $7.84 billion. This represents 7.2 per cent of all property transactions in Dubai by volume and 12.6 per cent of transactions by value.
Overall, buyers can expect to pay a premium of 69 per cent per square foot compared to non-branded properties in a similar area.
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The most expensive branded residence sold in Dubai in H1 2024 is a 47,700, eight-bedroom villa in The Ritz-Carlton Residences at Creekside, which fetched $45 million.
Hannoush adds: ‘This record-breaking sale not only underscores the significant value placed on luxury branded residences in Dubai but also highlights the market's ability to attract high-net-worth individuals willing to invest in premium, high-quality properties.
‘This transaction serves as a benchmark for the upper echelons of Dubai's branded residences market, showcasing the strong demand and high-value investments being made in this sector.’
