Dubai’s Luxury Market Soars: Branded Residences Poised for a 410% Surge with Investors Flocking to Jewellery and Auto-Themed Properties
Dubai stands at the forefront of the global trend in branded residences, transcending traditional real estate boundaries by integrating iconic brands from the hotel, jewelry, and automotive sectors into its market. With an unmatched commitment to this luxury niche, Dubai is set to elevate its standing with 54% of its market comprising standalone projects (those not linked to a hotel) by the next four years, a significant leap from the global average of 41%. This move not only underscores Dubai’s visionary approach but also highlights its dominance with a staggering 410% growth in the sector, ballooning from a mere ten projects in 2014 to an impressive 51 by the end of 2024.
Canal Crown is a de Grisogono branded building currently being developed by DAMAC Properties.
The sector’s remarkable trajectory is further evidenced by a 122% increase in the last five years, doubling the project count from 23 to 51. This unprecedented growth was spotlighted by Riyan Itani of Global Branded Residences (GBR) at the “The Future of Branded Residences” event in Dubai, revealing insights from an extensive study of 121 ongoing and upcoming projects in the emirate.
Looking ahead, the sector is poised for another growth spurt, with projections indicating a jump to 121 projects by 2029, a 137% increase. However, the landscape is evolving, with the share of hotel-branded projects expected to shrink from 78% to 51% of the development pipeline by 2028, signaling a shift towards more varied brand involvements.
Notably, upcoming developments will continue to favor apartment setups over townhouses, ensuring amenities like pools, spas, and meeting rooms are standard. This evolution reflects a broader market interest in dynamic, lifestyle-oriented branding, steering developers towards exciting collaborations with non-hotel entities, including less traditional partners like automotive and fashion brands.
Safe Two offers access to opulent experiences such as a one-of-a-kind sapphire infinity pool, fog forest and more.
This trend not only opens up new avenues for lifestyle brands to extend their reach through tangible experiences but also offers developers unique differentiation points in a competitive landscape. Initiatives such as Mercedes-Benz Places by Binghatti and Armani Beach Residences by Arada exemplify this synergy, catering to both ultra-luxury buyers and potentially broader markets.
The enthusiasm for branded residences is echoed by industry leaders who recognize the region’s vibrant growth and the opportunities it presents for both developers and brands to innovate and stand out. With Dubai’s branded residences expanding across key zones like Downtown, Business Bay, Marina/Beachfront, and even new areas like Dubai Internet City and Palm Jumeirah, the city continues to redefine luxury living, blending prestigious brands with high-end real estate.
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