If you follow the global real estate sector, you don’t need me to tell you that branded residences are big business. According to research conducted by Savills, there are approximately 740 branded residences worldwide at present, and this figure looks set to more than double by 2031.

Home to nearly 140 of these projects, Dubai represents the beating heart of this extraordinarily high-growth segment. In the first half of 2024, branded residences accounted for 7.2% of all property transactions in our Emirate. With overall sales worth $7.8 billion, this represents an impressive 12.6% of last year’s total transaction value.

As you may already know, DAMAC Properties was a pioneer in bringing branded residences to Dubai, and the segment remains a key focus for our team. We have participated in an array of enduring and successful partnerships, joining forces with household names such as The Trump Organization, Roberto Cavalli, Fendi Casa, de GRISOGONO, Radisson Hospitality and Paramount Hotel Group, to name but a few.

The question is, with increasing competition from emerging markets – particularly in the Asia-Pacific region – can Dubai maintain its status as a global leader in branded residences? Here’s my take…

A magnet for global wealth

The popularity of branded residences has increased exponentially in Dubai over the past decade. For instance, transaction volumes in the segment grew by a staggering 44% in the first six months of last year. To a large extent, this momentum has been fuelled by an ongoing influx of high-net-worth individuals (HNWIs) from Russia, Europe, India, China and the US.

Thanks to strategic policy initiatives, exclusivity and a thriving ultra-prime real estate market, Dubai remains an immensely sought-after destination for wealthy homebuyers and investors. Branded residences, in particular, deliver many of the benefits these clients are looking for, offering luxurious lifestyles or lucrative returns through either rentals or capital appreciation.

Given that the UAE registered a net inflow of more than 6,700 millionaires in 2024, it seems likely that demand for branded residences will remain robust for the foreseeable future.

Attractive investment opportunities

Dubai’s branded residence segment has proven popular among wealthy buyers and investors for various reasons. Owners of these properties can expect superior levels of service, security and exclusivity, along with a high degree of customisation – all aspects that were once the sole preserve of the world’s most luxurious hotels and resorts.

These developments are typically located in the most desirable neighbourhoods and offer access to a broad range of high-end facilities and amenities. What’s more, branded residences provide the world’s leading architects and interior designers with highly visible canvasses to showcase their talents, so it’s little wonder that such projects are attracting the attention of Dubai’s ever-growing HNWI community.

Naturally, returns on investment represent another major selling point for branded residences. Those looking to expand their existing real estate portfolios can do so with minimal risk, as these turn-key projects typically command higher rental incomes and resale values. According to figures published by Morgan’s International Realty, for example, buyers paid 69% more per square foot for branded residences than non-branded properties in the same parts of Dubai during the first half of 2024.

An increasingly diverse offering

With roots stretching all the way back to 1920s New York, branded residences have traditionally been associated with high-end hospitality operators. However, the rising popularity of stand-alone developments – which now include partnerships with automotive companies, fashion and jewellery designers, and even food and beverage brands – presents today’s high-net-worth investors with a diverse selection of options.

Globally, the non-hotel-affiliated segment is expected to rise by 40% over the next seven years, accounting for approximately 20% of total global branded residence stock. Thanks to its critically acclaimed fine dining scene and world-renowned luxury retail offerings, Dubai is ideally placed to consolidate its existing position and capitalise on future growth.

The fact that total demand for these developments is expected to achieve a twofold increase over the next six years is impressive in itself, but industry experts expect the Middle East’s branded residence segment to outperform its global counterparts – expanding by an eye-watering 270% during the same period. With a development pipeline that includes Couture by Cavalli, DAMAC Bay by Cavalli and Safa Two de GRISOGONO, this dynamic segment remains a central pillar of DAMAC Properties’ long-term market strategy.

Thanks to a growing investor base of HNWIs, an innovative approach to partnerships and a comprehensive suite of forward-thinking policies, I am 100% convinced that Dubai will retain its crown as the global capital of branded residences.

For me, the more interesting question is how high demand can climb.