Dubai Branded Residences Market Analysis - Second Half of 2023

Dubai’s Branded Residences Market Flourishes with 14 New Schemes 
Dubai, known for its opulent real estate landscape, witnessed a remarkable surge in its branded residences market during the second half of 2023. A total of 14 new branded residence schemes were launched within the second half of 2023, further cementing Dubai’s status as a global hub for luxurious living. As of December 2023, the city boasts a total of 106 branded residence schemes.
Prime Luxury at a Glance
Average Price per Sq.Ft Dubai’s branded residences continue to foreign investors with an average price  of 3,693 AED per square foot, equivalent to approximately 1,000 USD. This pricing remains competitive for a prime property in major global cities. 
The Premium Touch: Branded vs. Non- Branded
Branded residences in Dubai’s market command one of the largest premiums compared to non-branded properties, with the average global premium standing at 30%. Branded residences command  a 102% premium over non-branded counterparts in the same areas. Non- branded residences were valued at an average of 1,832 AED per square foot, which is equivalent to around 498 USD per square foot. 
A Shift Towards Standalone Branded Residences
Stand-alone branded residences with only a brand association are currently the most popular schemes due to the fact that brands from various industries are entering the race, with the majority of the new brands entering the segment being non- hoteliers. These schemes now account for 35% of all branded residences schemes in Dubai. 
Sales and Transaction Activity 
The second half of 2023 recorded impressive sales figures in the branded residences segment. A total of 5,331 branded residences were sold, amounting to a substantial value of 27.5B AED. The number of transactions increase by 35% in comparison with the second half of 2022. Notably, branded residences transactions represented 7.8% of all real estate transactions in Dubai during this period, underlining their growing significance within the luxury real estate landscape. 
Off-Plan Dominance and Appetite for Premium Developments
Off-plan branded residences carrying a 3% premium over ready branded residences. This difference does not necessarily imply that off-plan investments are less attractive; rather, it signifies strong demand for upscale developments that are yet to be completed. 
Primary Market Thrives: Off-Plan Sales Surge
The primary market, comprising off-plan properties, dominated branded residences sales during the second half of 2023. An astounding 76% of all branded residences sold during the second half of 2023 were off-plan properties. 60 branded residence projects are currently under construction in the emirate, signaling sustained growth. 
Crowning Glory: Prestigious Premium Residences
Marsa Al Arab by Jumeirah Group claimed the crown for the highest premium among branded residences in Dubai compared 
to non-branded alternatives. With an average price of 15,440 AED per square foot (approximately 4,203 USD per square foot), it embodies exclusivity and luxury. Bulgari Residences selling at 10,434 AED per sq. ft 2,840 USD, followed by Atlantis the Royal that was exchanging hands at average price per sq. ft of 8,413 AED 2,290 USD, on the other hand Bayview tower by ADDRESS was the top performing development during the second half. 
New Entrants Elevate the Landscape
Prominent entrants in the market include luxury watch brands Jacob & Co and Frank Muller, as well as automotive behemoths Bugatti and Mercedes-Benz. These brands are preparing to introduce their concepts in partnership with Binghatti, a developer that is expanding and capitalizing on the niche market.
In conclusion, Dubai's branded residences market stands as a testament to the city's allure as a luxury real estate haven. With its expanding portfolio, premium offerings, and an influx of diverse brands, Dubai continues to shine brightly in the global luxury property landscape. Prospective buyers are encouraged to conduct thorough research and seize the opportunities offered by this thriving segment.

Click here to download the full Dubai Branded Residences Report - H2 2023
Source : Research Team