Dubai’s branded home market posts exponential growth
Buyers are seeking out the best buildings with high levels of service and amenities
Dubai’s ultra-prime branded residential market recorded exponential growth in 2022 with over Dh25 billion in sales, representing an 80 per cent year-on-year increase while setting a new sales record for the market.
The latest analysis by global property consultancy Knight Frank shows that Dubai’s branded residential market continues to deepen with 61 per cent of off-plan apartment sales in the city linked to branded residential developments during 2022.
The branded residential sector led by operators such as Ritz Carlton, Bvlgari, Dorchester Collection, and the Four Seasons is all set to capitalise on the growing demand for high-end homes in Dubai. Buyers are seeking out the best buildings with high levels of service and amenities and the stability and security offered by leading, recognised brands managing the residences, realty experts said.
Going forward, the luxury and branded homes segment in Dubai will continue to record phenomenal growth as the city is witnessing an influx of high net worth individuals (HNWIs) wealth evidenced by the sharp rise in high ticket price transactions, in particular by Russians since the beginning of the Ukrainian war.
Knight Frank predicts that the luxury property market will grow further in 2023 by 13.5 per cent. This is a record in itself, as no other global property market is expected to touch the double-digit mark this year.
In 2022, prime property segment saw a 41 per cent increase in secondary market transactions and a 97 per cent rise in off-plan transactions for properties priced at Dh10 million and above. Furthermore, 2022 saw the highest-ever number of transactions recorded above the Dh100 million mark — total of 16 transactions recorded in 2022 compared to only five transactions in the whole of 2021.
Realty experts expect demand for the prime and ultra-prime market to continue to flourish in Dubai on the back of strong demand driven by visa reforms, the city’s positioning as a tax haven and a global destination for the wealthy.
The UAE – which was expected to attract the world’s largest net inflow of high net worth individuals last year – had 30 completed schemes and almost 50 in the pipeline as more brands enter the market to capitalise on soaring demand for luxury homes.
