The rise of branded residences in Dubai: Is it a smart investor’s choice?

Dubai’s luxury real estate market has always been about pushing boundaries, whether it’s the tallest tower, man-made islands, or the most extravagant penthouses. But over the past few years, a new trend has taken hold of the high-end property space, which is branded residences.

Think Atlantis the Royal, Armani, Six Senses, Cavalli, Dorchester Collection, and The Address. These aren’t just regular properties on the market, as they have created an extension of globally recognised brands that have built a legacy around design, service, exclusivity, and prestige.

With buyers hustling for the last unit available and immediate sell-outs for this, the question is: are these properties just about status and lifestyle, or do they also make for a smart investment?

Let’s break it down.

What are branded residences?

Let’s start from the beginning and understand what’s driving property demand for these particular properties.

Branded residences are luxury properties that are developed in partnership with established hospitality, fashion, or lifestyle brands. This could be a fashion house like Cavalli, a hotel operator like Six Senses, or a luxury label like Armani. The brand lends its name, design aesthetic, and often its service standards to the property, creating a curated lifestyle experience. Residents typically enjoy concierge services, spa access, housekeeping, and a range of hotel-style perks, all within a private residence setting.

In Dubai, branded residences have experienced a significant increase, not only in number but also in demand from buyers. Last year, Dubai saw a sales volume of 13,220 branded residences, generating approximately AED 60.4 billion in sales.

But what is causing demand to soar so high?

1. Prestige and exclusivity – Buyers are drawn to the idea of owning a property that’s tied to an elite name. It’s a statement of taste and status.
2. Design and quality – Most branded projects bring in world-class designers, architects, and materials. You’re not just paying for a name, you’re often getting a level of craftsmanship and detail that’s rare in even top-tier developments.
3. Lifestyle services – Whether it’s 24/7 concierge, valet parking, or wellness facilities, branded residences are designed for comfort and convenience at the highest level. For many end-users, it’s the lifestyle that sells it.
4. Location, location, location – These developments are often located in prime areas such as Downtown, Palm Jumeirah, Dubai Marina, and Business Bay, where real estate demand is already strong.

ROI vs non-branded residences

From an investment standpoint, the biggest question is whether branded residences actually offer better returns. The answer? It depends.

• Rental premiums: In most cases, branded residences command higher rental rates due to their exclusivity, finishing, and service offerings. For investors looking at short-term rentals, especially in tourist-driven areas like the Palm or Downtown, this can lead to strong yields.
• Capital appreciation: Historically, branded properties tend to outperform non-branded counterparts in terms of capital appreciation. The perceived value of a Cavalli or Address home is stickier in the market and more resilient during slower cycles.
• Resale liquidity: These properties attract both local and international high-net-worth buyers. As a result, branded units often enjoy better resale liquidity, particularly when the brand name is globally recognised.

However, investors should also weigh the higher service charges and sometimes steeper upfront premiums. The ROI can still be high, but it’s not guaranteed to outperform every time, especially if you’re comparing two similar properties in the same location.

Lifestyle value vs resale value

Many people wonder what the difference is in value when comparing the lifestyle and resale.

For end-users, the equation is slightly different. It’s not always about rental yields or flipping potential, it’s about the quality of life. Branded residences provide a seamless living experience where service, design, and comfort are at the forefront.

That said, it’s worth noting that many of these buyers are also future-minded. Even if the property is for personal use today, the resale potential of a branded unit can make it a smarter long-term move than a standard high-end property.

Still, not all branded residences are created equal. Some projects use branding more as a marketing gimmick, without the actual depth of design or service that the brand implies. That’s why doing your due diligence on both the developer and the brand is crucial.

Investor vs end-user: Who gains more?

If you’re an investor, branded residences can be a strong addition to your portfolio, especially if you’re looking at well-located, globally recognised brands that offer actual service differentiation and are backed by experienced developers. But they do come at a premium, so understanding the true ROI (net of service fees) is essential.

If you’re an end-user, the lifestyle proposition might be worth every dirham. You’re not just buying a home, you’re buying an experience, one that blends hotel luxury with residential privacy. For many, this hybrid lifestyle is the ultimate draw.

Just remember: as with any premium product, the value lies in thedetails, the quality of execution, the strength of the brand, and the long-term vision of the developer. Get those right, and a branded residence might just be the smartest luxury decision you make in Dubai’s fast-evolving property market.

Thinking about branded residence living?

You can browse our luxury market listings here.