Since the launch of Armani Residences in Burj Khalifa in 2010, Dubai has firmly established itself as a global leader in the branded real estate sector. According to a report by the consultancy firm Global Branded Residences (GBR), this sector has witnessed an impressive 122 per cent growth over the past five years, expanding from 23 to 51 projects. This significant growth highlights Dubai's role as a premier destination for branded residential developments, attracting investors and buyers from around the world.

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Understanding Branded Residences:

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Branded residences are properties developed in collaboration with globally recognised brands. Initially dominated by major hotel chains offering serviced apartments with hotel-like infrastructure, the market has since evolved to include partnerships with luxury jewellery brands, fashion houses, and car manufacturers. This evolution has resulted in standout projects in Dubai such as Bulgari Resort and Residences, Cavalli Tower, Mira Villas designed by Bentley Home, and Trussardi Residences. These properties embody a unique combination of luxury, exclusivity, and brand prestige, often featuring fully furnished interiors, bespoke services, and one-of-a-kind amenities.

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The Appeal of Branded Residences:

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One of the main attractions of branded residences is the assurance of quality and service. According to research by Savills, branded residences can command a rental premium of up to 31 per cent compared to non-branded projects, making them particularly attractive to investors. Furthermore, these properties tend to appreciate well over time, offering lucrative resale opportunities and appealing to long-term buyers seeking stable investments.

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As Mira Real Estate founder and CEO Tamara Getigezheva explains, "The partnership between brands and developers is reshaping the real estate landscape, creating unique living spaces that blend luxury with brand prestige. More often than not, brands play an active role in overseeing construction, furnishings, and maintenance in the subsequent years to ensure the final product meets and retains their high standards."

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Investment Potential and Rental Market:

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The demand for branded residences in the UAE is expected to grow steadily, driven by an increasing number of affluent buyers and a dynamic property market. According to an analytics report by JLL MENA, the branded residences market is forecasted to expand by 15 per cent by 2025. This growth reflects a broader trend of rising interest in luxury living spaces that offer a lifestyle aligned with the values and prestige of a global brand. With the perceived value of these residences elevated, they attract clientele willing to pay a premium for the assurance of quality and exclusivity.

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This trend extends to the rental market as well, where properties associated with prestigious global brands are particularly desirable. "For investors, this means attracting a certain calibre of tenants," says Tamara. "As more wealthy individuals seek distinctive and luxurious living spaces, the demand for branded residences to let is set to rise. Those investing in such apartments and villas will readily find high-end tenants on any given day. Although the number of branded residences is increasing, they still represent only a small portion of the overall Dubai property market. However, due to our extensive experience in this segment, Mira Real Estate can offer investors a wide range of options, from affordable luxury to ultra-high-end properties, including exclusive listings not available on the regular market."

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Challenges and Opportunities:

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Despite the robust growth, the branded residences sector faces challenges. The exclusivity and high standards associated with these properties require significant investment in design, construction, and maintenance. Developers and brands must continually innovate to differentiate their offerings in a competitive market. However, these challenges also present opportunities for developers and brands willing to adapt and innovate. For instance, by leveraging cutting-edge technology and sustainable practices, they can create residences that appeal to environmentally conscious buyers. Additionally, expanding collaborations with diverse industries, such as art and technology, can enhance the appeal of branded residences for a broader range of buyers and investors.

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Future Growth:

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Dubai's branded residences continue to thrive, driven by a combination of luxury, quality, and brand prestige. As the sector evolves, it is likely to attract increased attention from both local and international clients, reinforcing Dubai's reputation as a hub for luxury real estate. With its focus on quality and desirable lifestyle patterns, branded high-end living spaces offer more than just a place to live - they provide an experience intertwined with identity and appealing values. With a limited supply and naturally growing demand in line with the city's development, these properties are likely to remain among the most solid investment assets the market can offer, at least for the foreseeable future.

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