In a city filled with luxury, it's no surprise that even homes are now becoming brands themselves. In Dubai, you can find residences decked out with all the amenities and features that money can buy - and then some. If you’re in the market for a branded home, Dubai is the place to be. Branded properties offer higher yields, lower operating costs, hassle-free management, and a quicker sale than regular properties.
Branded Residences are essentially a collaboration or a partnership between a real estate developer and a prominent luxury lifestyle brand. Historically, Branded Residences were primarily joint ventures with luxury 5-star hotel brands such as Four Seasons, Ritz-Carlton, and Banyan Tree, to name a few.
This concept has since evolved.
In today’s contemporary world, many lifestyle brands such as cars, jewelry, and fashion are also making a distinct mark on the skyline, and there is no other city seeing more traction than Dubai. Some of the more popular examples are the likes of Armani, Elie Saab, Aston Martin, Lamborghini, and de GRISOGONO.
“The brand-residence industry has exponentially grown by 200% in Dubai over the past ten years, enabling Dubai to compete with places like New York and Miami in both ongoing and completed projects,” said Adham Younis, CEO of D&B Properties.
1. The Armani Hotel, Burj Khalifa
- World-class spa
- Infinity pool
- Private club
2. Elie Saab Townhouses, Meydan
- Serenity swimming pool
- Premium shopping & dining
- Sport courts
- Elite schools
3. Cavalli Tower, Dubai Marina
- Housekeeping (a la carte)
- Personal trainer
- In-room spa treatment
The Benefits of Owning a Branded Residence
Dubai has seen a large influx of High-Net Worth Individuals (HNWIs) in the last 2 years and is further expected to receive another 4,000 millionaires before year-end as per Henley Global Report 2022, making Dubai the top destination for millionaires. This is largely due to the government's initiatives, such as switching the global work week (Monday to Friday) from the GCC's practice (Sunday to Thursday). The UAE is also one of the safest countries, ranking second in the Law-and-Order Index according to Gallup's Law and Order 2021 Report. Additionally, the country has comparatively little taxation, which makes it the best place to invest.
According to Knight Frank’s The Branded Residence Overview Dubai 2022 report, 14% of all residential units sold in 2021 were Branded Residences, demonstrating how the growth in HNWIs in Dubai is directly tied to the rising demand for luxury properties, particularly Branded Residences. Similar to this, an increase in branded residences would entice more HNWIs to invest, which will support the nation's economic expansion.
Private poolPersonal shopperPersonal trainerPet grooming serviceBranded F&B experienceMulti-functional activity room eventsValet parking Regular hospitality service24-hour concierge service
How Much Do Branded Residences Cost?
Branded Residences are often 25% to 35% more expensive as compared to non-branded residences of the same luxury standard, making them somewhat exclusive for Ultra-High Net Worth Individuals (UHNWI). According to Knight Frank's Global Branded Residence Report 2022, however, the capital appreciation for these residences is also significantly higher.
- Branded Residences are often 25% to 35% more expensive
- Higher cash flow throughout early stages of development
- Leveraging on established marketing
Because of the tremendous potential in Branded Residences, developers have jumped into the real estate market with both feet. Due of the exceptional quality and originality that each well-known brand offers, this inspires the buyer’s confidence. Additionally, it enables the developer to leverage the luxury co-brand's larger, if not global, customer loyalty network while utilizing its design knowledge and marketing advantages. According to Savills' research article published in November 2021 on What are branded residences?, brand association also gives developers a higher cash flow throughout the early stages of development, ensuring that project completion dates won't be pushed back.