The branded residences market in Dubai has exhibited exceptional growth and resilience in the first half of 2024. During this period, a total of 5,592 branded residences were sold, amounting to a total value of 28.8 billion AED. These figures represent 7.2% of all property transactions in Dubai and an impressive 12.6% of the overall value of transactions in the city. Year on year, transaction volumes for branded residences have surged by 44%, reflecting a significant increase in demand and investor confidence in this niche market. Additionally, the total value invested in branded residences has seen a 25% increase compared to the previous year, further underscoring the robust performance and growing appeal of these luxury properties.
Dubai has also witnessed a steady influx of new branded residence developments, with an average of 22 new projects being launched annually. In the first half of 2024 alone, 17 new branded developments were introduced, adding 7,262 units to Dubai's real estate inventory. As of June 2024, the total number of branded residence developments in Dubai reached 121, encompassing 39,046 units. This consistent addition of new projects highlights the robust demand and the confidence developers have in the market's potential. To meet the surging demand and cater to diverse investor preferences, Dubai developers are actively seeking new brand collaborations, aiming to introduce unique and innovative concepts to the market.
A notable aspect of Dubai's branded residences market is the substantial premium buyers are willing to pay. On average, property buyers pay 69% more per square foot for branded residences compared to non-branded properties within the same locations. This premium significantly exceeds the global average and underscores the trust and confidence that investors have in the branded residences niche. This willingness to pay a premium showcases not only the appeal of the concept but also the strong faith in the brands associated with these properties. The higher price point is a testament to the perceived value and the assurance of quality, service, and prestige that branded residences offer.
Within Dubai's branded residences market, standalone branded projects constitute 34% of all branded residences in the city. These projects represent the simplest form of partnership between a brand and a developer, wherein a brand lends its name and prestige to a development without necessarily engaging in the deeper, more integrated aspects of property development. This straightforward form of collaboration is particularly appealing for brands that are new to the real estate sector and are looking to establish a presence without the complexities of full-scale branded residence schemes. As the market continues to grow and evolve, we anticipate an increase in such standalone branded projects. Brands seeking to enter the industry and test the waters are likely to find these partnerships attractive, paving the way for further expansion and diversification in Dubai's branded residences landscape.
The highest concentration of branded residences in Dubai is found in three prime locations: Palm Jumeirah, Downtown Dubai, and Business Bay. These areas are renowned for their luxury appeal, high-end amenities, and prime real estate, making them ideal locations for branded residence developments. Palm Jumeirah, with its iconic palm-shaped island, offers an unparalleled waterfront lifestyle and is home to some of the most prestigious branded residences in the city. Downtown Dubai, the vibrant heart of the city, boasts landmarks such as the Burj Khalifa and The Dubai Mall, attracting both residents and investors seeking a cosmopolitan living experience. Business Bay, a rapidly developing business and residential hub, combines luxury living with commercial convenience, appealing to professionals and families alike.
Our research reveals interesting dynamics in the premium paid for branded versus non-branded residences across different types of developments and locations. The highest premium for branded residences is observed in beachfront developments located in areas such as Umm Suqeim, Jumeirah Beach Residence (JBR), and Pearl Jumeirah. These areas command significant premiums due to their prime coastal locations, offering unparalleled views and exclusive waterfront lifestyles. The allure of beachfront living, combined with the prestige of branded residences, drives up the value significantly in these locales. Conversely, the lowest premium for branded residences is found in villa communities such as Dubai Hills, Jumeirah Golf Estates, and Arabian Ranches, where the premium remains below 10%. These villa communities, while offering luxurious and spacious living environments, do not exhibit the same level of premium pricing for branded properties. This lower premium suggests that the added value of branding is less pronounced in these suburban, family-oriented settings compared to the highly sought-after beachfront locations.
Another notable trend in the branded residences market in Dubai is the pricing dynamic between properties under construction and those that are ready for occupancy. On average, branded residences under construction are priced approximately 10% lower than their ready counterparts. This pricing differential underscores a healthy demand from end-users who are keen to secure these properties for personal use, as well as offering investors an attractive margin for capital gains. The lower prices of under-construction branded residences provide an entry point for buyers looking to benefit from future value appreciation once the properties are completed. This dynamic highlights the strong confidence in the market and the appeal of branded residences as a long-term investment. The willingness of buyers to invest in properties before completion indicates their trust in the brands and developers, as well as their anticipation of the enhanced lifestyle and prestige that these residences will offer upon completion.
Emaar's homegrown hotel brand, The Address, remains the most popular brand among branded residences in Dubai, with 11 developments spread across the city. This brand's widespread presence underscores its strong market appeal and the trust it has garnered among property buyers and investors alike. In terms of luxury and pricing, the most expensive and prestigious development in Dubai is Jumeirah Marsa Al Arab, where residences are priced at 13,300 AED (3,620 USD) per square foot. This is followed closely by Bulgari Residences, priced at 11,380 AED (3,098 USD) per square foot, and Four Seasons Private Residences, priced at 9,257 AED (2,520 USD) per square foot. These high price points reflect the unparalleled luxury, exclusivity, and prime locations of these developments, catering to the ultra-high-net-worth individuals seeking the finest in branded residential living.
The most expensive property sold within the branded residences niche during the first half of 2024 a 47,700 square foot villa in The Ritz-Carlton Residences at Creekside. This property was sold for a 165 million AED (45 million USD), equating to a price of 3,472 AED (945 USD) per square foot. 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. The Ritz-Carlton brand, synonymous with luxury and exceptional service, continues to command a premium price, reflecting the trust and desirability associated with such distinguished 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.
In conclusion, the branded residences market in Dubai continues to demonstrate robust growth and strong investor confidence. With significant premiums paid for branded properties, a steady influx of new developments, and high-value transactions, Dubai remains a global leader in luxury real estate. The diverse range of branded residences, from beachfront developments to villa communities, caters to a wide array of buyers and investors, ensuring the market's sustained dynamism and appeal. As developers and brands continue to collaborate and innovate, the future of Dubai's branded residences market looks promising, poised for continued success and expansion.
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