Branded residences have become a dominant feature of Dubai’s luxury real estate market in recent years. Towering new developments with names like Bulgari, Bugatti, Armani, and Six Senses aren’t just architectural statements – they’re promises of exclusivity, design integrity, and concierge-style living. But as they fare head-to-head with a flood of luxury projects with name associations and often a hospitality connection, the question looms larger still – are branded residences in Dubai really worth the premium?
In a practical sense, branded residences have transformed this city into the world’s capital of hotel residences. Sales in this category reached over AED 60 billion in 2024, a staggering 43% growth compared to the previous year. Luxury buyers are willing to pay handsomely – as much as 40–60% more than comparable non-branded properties – to have their homes in the service of established global brands. The allure? Flawless service, luxury design, and that sense of status that only a few fashion brands can offer.
Leading the charge is a parade of newsworthy sales releases: Bugatti Residences by Binghatti, Armani Beach Residences, and the just-announced Trump Tower Dubai by Dar Global – to name a few. These are no longer fringe developments – they are changing what prime Dubai real estate looks like.
The price tags might strike you as inflated at first blush. Branded residences can outprice their non-branded counterparts by as much as 69% per square foot, in some cases. But the numbers are a little more complicated than they seem. These properties often generate higher rental yields (usually in the 6–8% range) and are more resilient during market downturns. Indeed, branded properties experienced just modest drops in value (–5% in 2020) compared with those in the more traditional segment (–10%).
Owners also gain from the world’s finest service standards: 24/7 concierge, housekeeping, maintenance services, wellbeing services, and access to proprietary hospitality programs. With Dubai keeping up its appeal as a magnet for affluent investors and remote workers, added perks like these aren’t just nice to have – they’re buzzy advantages in a saturated luxury landscape.
Branded homes may perform better in terms of asset protection and tenant demand. New studies indicate they provide not only better rates of occupancy but also better resale, some at the 20–25% appreciation level.
Still, all that glitters is not gold. While the advantages are real, so are the barriers. The upfront premium can be high – especially for those more focused on ROI than on name recognition. With brand association often comes operational restrictions like caps on the frequency of property usage, stringent aesthetic guidelines, or service fees on top of a higher charge for an unbranded unit.
The reputation of the brand counts too. Names backed by hospitality operators, like the Ritz-Carlton or Six Senses, bring to the table established experience managing services; others – like fashion or automotive brands – might not supply the necessary operational muscle to manage residences in the long term. The result? A place that seems the part but fails to deliver.
In addition, many of these investments have a leading role only further down the line. And if you are an investor looking to quickly flip, the premium paid may not be recovered anytime soon, especially if one messes up the timing of the market.
Typically, three factors need to apply for a branded residence in Dubai to be worth your money:
Located at the nexus of investment, design and identity, branded residences in Dubai create a unique mix. For the discerning buyer who values market longevity, lavish service and global distinction, they can be an extraordinary option – not just to live in, but also to pass down as a legacy.
But like any purchase, they should be given careful consideration. It’s all in the name: the name alone is no guarantee of success. Rigorous due diligence, timing, and a good understanding of the property’s use case are also key.
The skyline of Dubai is shifting – and so too is the concept of luxury. The issue is not only whether branded residences are worth it, but also whether they are worth it for you. So, if you are planning to buy one-bedroom apartment in Dubai, contact DDA Real Estate. We will help you with everything you need.
