Branded homes in Dubai: Why they’re growing and what buyers should know

Branded residences are still surging in Dubai: Premiums, perks, and the risks to weigh

Last updated: August 25, 2025 | 13:55

3 MIN READ

Multi-million dollar homes. Boats and all the other facets of luxury living. World's rich are coming to the UAE for just that sort of lifestyle.

AFP

Dubai: For decades, luxury homes in Dubai meant penthouses, villas, and prime towers in central locations. Now, a new trend is reshaping the city’s property market: branded residences.

These are homes developed in partnership with global names — from Armani and Bugatti to Mercedes-Benz and Six Senses — and they are fast becoming one of Dubai’s strongest growth stories.

According to a new report from Betterhomes, titled 'Branded Residences: Dubai vs The World', branded residences globally have expanded by 160% in the last decade, and Dubai is now the clear leader. With more than 140 branded projects expected by 2031, the emirate has built a pipeline larger than most world cities combined.

So what makes these properties different, and what should UAE residents — whether first-time buyers or seasoned investors — know about them?

What are branded residences?

Branded residences are residential developments tied to prestigious global brands. Traditionally, these were linked to five-star hotels such as Four Seasons or Ritz-Carlton. Today, the category has broadened to include fashion houses (Armani), carmakers (Bugatti, Mercedes-Benz), and lifestyle names.

What they all promise is a blend of luxury services, exclusivity, and resale value. Think concierge service, access to spa facilities, and interiors designed in collaboration with brand names known worldwide.

Also Read: Dubai is where world’s rich want to stay - and willing to pay more for luxury homes

Why Dubai leads

Several factors explain Dubai’s dominance in this space:

Government support: Policies such as long-term Golden Visas, 100% foreign ownership, and zero income tax attract global wealth.
Developers’ vision: Local developers like Emaar, Meraas, and Nakheel, along with newer names like Binghatti, have embraced brand partnerships to stand out in a competitive market.
Affordability vs global peers: Despite commanding a 40% average premium per square foot over non-branded homes in the same areas, Dubai’s branded residences are still cheaper than similar projects in Miami or London, while offering stronger growth potential.

Price premium

The appeal comes at a cost. Buyers in Dubai pay, on average, a 40% premium for branded residences compared to non-branded homes nearby. In some cases, the premium can climb higher — Bugatti Residences in Business Bay, for instance, are priced almost 200% above standard developments in the area.

Globally, premiums are similar or higher. In Miami, the Aston Martin Residences sold at 159% above non-branded prices. In Singapore, Pullman-branded homes commanded a 133% premium.

For buyers, the higher cost is justified by prestige, luxury amenities, and the expectation that resale values will hold or grow better than non-branded homes.

Demand drivers in UAE

The report highlights several reasons why demand for branded residences continues to rise in Dubai and the wider MENA region:

Migration of wealth: High-net-worth individuals relocating to Dubai see these properties as a statement purchase.
Investment appeal: Strong rental yields and faster resale timelines compared to non-branded homes.
Lifestyle factors: Full-service amenities and brand association appeal to international buyers and younger professionals seeking convenience and status.

By 2030, branded residences are expected to make up 25% of the MENA residential market, with Dubai leading the way.

Also Read: Top 6 Dubai residential communities with biggest profits for first-time buyers

What’s in the pipeline?

Dubai has more branded projects under construction than most cities worldwide. Some of the high-profile launches include:

Bugatti Residences, Business Bay (handover 2026)
Mercedes-Benz Places, Business Bay (handover 2026)
Armani Beach Residences, Palm Jumeirah (handover 2027)
Tonino Lamborghini Residences, Nad Al Sheba (handover 2027)
Six Senses Residences, Dubai Marina (handover 2028)
Kempinski Residences, Dubai Creek (handover 2026)

Together, these projects underline Dubai’s ambition to remain the global hub for branded luxury living.

What buyers should consider

For UAE residents, branded residences are not just aspirational purchases — they are investment decisions. Here are some key points to weigh:

Premium vs value: Buyers pay more upfront but may gain higher resale value and stronger liquidity later.
Lifestyle fit: Services and facilities may appeal to some but add to service charges.
Market positioning: Branded homes resell faster, but demand is often international. Local buyers should consider whether the added brand value matches their long-term goals.
Risk of oversupply: With more than 100 projects planned, the market could face pressure if demand slows.

Bigger picture

Dubai’s push into branded residences reflects the city’s broader urban and economic strategy. By combining global brand power with property development, Dubai is reinforcing its status as a magnet for global wealth and innovation.

For residents, this means more choice at the upper end of the market — but also a reminder to carefully balance status, lifestyle, and long-term financial returns when making a purchase.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.