Why Branded Residences Are Becoming a Top Investment Choice: Insights from My Clients

Welcome back to another edition of The Dubai Effect!

This week, we're immersing ourselves in the realm of Dubai real estate, exploring why branded residences stand out as excellent investment opportunities.

Dubai has established itself as a premier destination for luxury-branded residences over the past decade. This trend began in 2010 with the launch of the Armani Residences at the iconic Burj Khalifa Tower. It was the city’s first entry into the branded residential market.

Our journey begins with a fascinating development that has sparked widespread interest across the real estate landscape: Aston Martin, the renowned British automotive brand, making its debut in the UAE's real estate market. Teaming up with Dar Global, Aston Martin unveiled its latest masterpiece, 'The Astera, Interiors by Aston Martin,' an awe-inspiring beachfront residential project nestled on the Al Marjan islands in Ras Al Khaimah.

With an impressive Gross Development Value of Dh900 million (￡200 million), this project marks Aston Martin's inaugural venture into real estate design in the Middle East. Set to be completed by December 2028, this waterfront gem promises to redefine luxury living along the Arabian Sea, boasting secluded beaches and meticulously crafted apartments and villas.

As we delve deeper into the realm of branded residences, it becomes clear that Dubai leads the way in this flourishing sector. Branded residences offer a unique fusion of opulence, exclusivity, and investment potential, making them an irresistible choice for savvy investors.

What Is a Branded Residence?

A branded residence is a property developed by collaborating with a real estate developer and a prominent brand name. This collaboration involves the brand’s design and management of the properties.

To elaborate, Dubai provides some additional context. It notes that branded residences are imbued with an established brand’s distinct image and values. Furthermore, the properties are serviced to the same high standard of quality that the brand is known for.

While branded residences often feature partnerships with renowned hotel and resort companies, other luxury brands from different industries have partnered with developers. These include high-profile names like Rolex, Frank Muller and Versace.

5 reasons why branded residences make good investments:

According to insights from developer MERED, investing in Dubai's branded residences presents a compelling opportunity, with promising returns driven by escalating demand, rising affluence, and global mobility. Knight Frank's data highlights a significant surge in interest, with 69% of high-net-worth individuals expressing a desire to own branded residences, up from 59% in 2023.

Hunter Jones Group, outlines the five key aspects fueling the appeal of branded residences in Dubai:

1. Rising demand

2. High returns

3. International brand heritage

4. Intrinsic brand value

5. Luxury living spaces

Investing in higher-end branded residences in Dubai holds considerable allure for several reasons. According to the Dubai Branded Residences Report of H1 2023, these properties consistently fetch a significant premium over non-branded ones in similar neighborhoods. For instance, the report indicates that the average price per square foot for branded residences in Dubai was AED 2,721 (USD 740), representing a substantial 37% price premium.

Furthermore, a 2023 report by Knight Frank sheds more light on the appeal of Dubai’s branded residential market. Firstly, branded residences tend to appreciate in value more rapidly due to their prime locations, superior quality, and association with renowned brands. Data from the report reveals that over the past decade, properties in upper-tier branded schemes experienced an average capital growth of 154%, surpassing the city's overall increase of 100%.

Secondly, branded residences offer higher rental returns compared to their non-branded counterparts. With resort-style amenities and integrated hotel management services, these properties cater well to short-term rental demands. Some luxury branded buildings have seen annual rent collection surpassing 5%, a notably high figure for the Dubai market.

Lastly, investing in an established global brand provides overseas investors with crucial peace of mind. The brand oversees quality control, property management, and service standards, mitigating risks more effectively than purchasing an independent property would.

Dubai boasts an array of higher-end branded residences, each offering unique features and investment potential

With completion dates ranging from 2025 to 2028, Hunter Jones presents a curated selection of top 10 off-plan branded residences:

• Armani Beach Residences by Arada: A new project in Palm Jumeirah offering 2- to 4-bedroom apartments and penthouses with smart home technologies.

• Burj Binghatti Jacob & Co Residences: A landmark development by Binghatti Developers and Jacob & Co in Business Bay district, featuring luxurious apartments and penthouses.
• Damac Altitude at Business Bay: Designed by de Grisogono, this project features bespoke tower-designed apartments with stunning views of Dubai Canal and Burj Khalifa.
• Armani Residences, Burj Khalifa: Located within the iconic Burj Khalifa, offering luxury hotel apartments with 1-2 bedroom configurations.
• BV Residences (Bvlgari Resorts and Residences): Situated on Jumeirah Bay Island, this development offers lavish beachfront living with 1, 2, 3, 4-bedroom flats and penthouses.
• DAMAC Bay by Cavalli: A seafront residential development between Palm Jumeirah and Bluewaters Island, offering 1, 2 & 3 bedroom seafront apartments.
• Six Senses Residences: A luxury development in Dubai Marina offering 2 to 5-bedroom apartments, penthouses, duplexes, and triplex sky mansions managed by IHG Hotels & Resorts.
• Bulgari Lighthouse: Situated on Jumeirah Bay Island, this development offers 4-5 bedroom penthouses & 7-bedroom sky villas with breathtaking sea and skyline views.
• The Franck Muller Aeternitas Tower: Dubai Marina, exquisite collection of 1–3 bedroom apartments, Franck Muller Villas and Mansions, and an exclusive penthouse.
• Bugatti Residences: Another prestigious collaboration in Business Bay, offering 2 to 4-bedroom apartments and Sky Mansion penthouses.

These projects exemplify Dubai's status as a global leader in high-end branded residences. If you're considering investing in these properties, we're here to assist you every step of the way.

Invest not just in a property but in a vibrant Dubai lifestyle and a secure tomorrow. Your dream property awaits; seize it with Hunter Jones, your trusted partner in real estate aspirations.

Drop us a call or email today to explore more about higher-end branded residences and make informed investment decisions.

[email protected] // +44 7743 373717 // +971 58 510 3249

Reece Sayers

Head of Dubai Sales.