Branded real estate projects in Dubai stand out for their impressive returns on investment, prestige, and ability to attract high-net-worth individuals. While Dubai real estate has always been an attractive investment, branded residences offer an especially enticing opportunity, according to developer MERED. These luxurious properties combine premium amenities, sophisticated design, superior service, and robust security, distinguishing them from traditional real estate.
Branded Real Estate in Dubai
The popularity of branded residences in Dubai is on the rise among high-net-worth individuals worldwide, with interest growing from 59 percent in 2023 to 69 percent, according to Knight Frank. Diana Nilipovscaia, CEO of MERED, outlines five key factors that make branded residences in Dubai particularly appealing to buyers:
1. Rising Demand
The demand for branded residences is rapidly increasing, driven by rising affluence, greater mobility, and the desire of wealthy investors to diversify their property portfolios. Dubai boasts the highest number of branded residences globally, reflecting the 160 percent growth in the sector worldwide. The UAE ranks second only to the US in terms of development pipelines for branded residences, with 17,000 units currently operational and an additional 5,000 in development. This growth highlights a robust investment opportunity with a promising outlook.
2. High Returns
Branded residences offer reliable returns, whether through rental income or resale, making them a secure investment choice. Premium brands command premium rental income. Due to their limited supply and high demand, branded residences retain their value better than conventional real estate. They can appreciate by approximately 20 percent and offer an average return on investment ranging from 6.5 percent to 9 percent, depending on whether they are used for long-term or short-term rentals. This ensures strong capital appreciation upon resale.
3. International Brand Heritage
Similar to a branded handbag or luxury car, a real estate product associated with an international resort brand consistently delivers quality, style, and prestige in line with the brand’s reputation and standards. These projects ensure consistent quality, management, and service, regardless of location, unlike conventional luxury residences, which are often developed by domestic or international real estate developers. The reliability, prestige, familiarity, and trust in these brands provide peace of mind to buyers, making them an attractive long-term investment.
4. Intrinsic Brand Value
Association with a prestigious global brand ensures that the project meets higher standards than typical real estate developments. Luxury brands closely oversee design, construction, and amenities, ensuring alignment with their brand identity. The involvement of renowned brands guarantees prime locations, superior design, and construction quality in central urban areas. Analysis by Savills indicates that the development costs of branded real estate projects are higher due to high-class furniture standards and extensive exclusive amenities, enhancing their value.
5. Luxury Living Spaces
In the post-pandemic era, there has been a significant shift towards properties offering open living spaces, wellness amenities, and private facilities. Branded residences cater to these preferences with stunning views, exquisite cuisine, wellness spas, retail activities, and other features that promote relaxation and well-being. The technology and innovation-friendly environment make these properties ideal for modern living, combining luxury with convenience. This alignment with contemporary lifestyle trends ensures that branded residences remain a desirable choice for discerning investors.
Conclusion
Investing in branded residences in Dubai presents a compelling opportunity for high returns, prestige, and the assurance of quality associated with global brands. With rising demand, robust returns, and the intrinsic value of international brand heritage, these properties stand out as a smart investment choice in the dynamic Dubai real estate market. Whether for guaranteed rental income, ownership prestige, or luxurious living, branded residences in Dubai promise a prosperous future for astute investors.
