Page 92 - SOL Properties PR Report - May 2025

top-tier services and management, the demand for such properties continues to
soar.

This trend is particularly evident in prime areas such as Palm Jumeirah, Downtown
Dubai and Dubai Marina, contributing to the growth of the UAE’s luxury residential
real estate market, which is projected to grow from $15.83 billion in 2025 to $22.94
billion by 2030, at a compound annual growth rate (CAGR) of 7.7 per cent. Locations
like Jumeirah Bay Island, with its combination of exclusivity, natural beauty and
brand appeal, offer some of the highest property premiums in the city.

Developers are actively launching new luxury projects to meet investor
demand. Branded properties developed in collaboration with global brands were
initially dominated by hotel chains providing serviced apartments that offer residents
the comfort and service of a five-star stay. However, this idea has now evolved to
include fashion houses, jewellery brands and luxury automakers, bringing their
unique aesthetics to the homes they help build.

These residential units attract both discerning investors and buyers who seek more
than just luxury properties. Branded residences offer immersive environments
shaped by unique designs, world-class amenities and unparalleled services. Owning
such a property is not merely about real estate, it is an immersion into a lifestyle
curated by brands synonymous with excellence. The collaboration with a globally
recognised brand enhances not only the visual appeal, service quality and lifestyle
but also the overall property value that conventional luxury properties often lack.

Though branded residences are gaining popularity across the globe with various
cities venturing into this field, Dubai has already marked its strong leadership in the
realm. As of Q4 2024, the city was already home to over 70 branded residences,
with more high-profile projects expected to launch in 2025. This positions Dubai at
the forefront of the market, highlighting its strong infrastructure, investor confidence
and appeal to global luxury consumers.

Another factor that distinguishes branded residences is the higher premium
associated with it. However, it is well justified by the added value it offers through
brand prestige, superior architecture and luxury service offerings. For developers,
brand association enhances pricing potential and profitability, meanwhile for
homeowners, it ensures a prestigious and future-proof investment.

In times of global uncertainty, branded residences offer stability. Backed by
reputable hospitality or fashion brands, these properties come with better property
management and tend to hold their value well. Investors are increasingly seeing
them as long-term safe assets, especially in dynamic cities like Dubai.

Beyond the architectural aspect, branded residences deliver tangible financial

benefits. They often attain higher rental yields, exhibit strong capital
appreciation over time and residents can benefit from expert management aligned
with the brand’s high standards. In this regard, branded residences appeal to both
lifestyle-driven owners and investors seeking robust long-term value.

Khaleej Times