Branded residence demand in Dubai could see 20% price surge as international investors eye lifestyle upgrade

The demand for branded residences in Dubai is expected to drive a significant price increase, with prices projected to rise by 10-20% from the current average of approximately $1,769 (AED 6,500) per square foot. Industry experts suggest that the surge in demand is fueled by ultra-high-net-worth individuals (UHNWIs) from regions like India, Europe, Russia, China, and the US. These investors view branded residences not only as a lifestyle upgrade but also as a strategic investment.

The growing wealth, particularly in Asia, coupled with the rising number of ultra-luxury branded residential projects, is driving the demand for premium properties in Dubai. Notable developments such as Sofitel’s first branded residence in Dubai, a collaboration between Rove Hotels and IRTH Group, and the world’s first standalone luxury Regent Residences by IHG Hotels & Resorts and Sankari are among the many new branded projects set to enhance the city’s skyline.

Experts predict that prices for branded residences could increase by up to 25%, influenced by factors such as location—especially waterfront or beach access—views, brand reputation, and service offerings.

Additionally, high rental yields from branded homes in Dubai, forecasted to grow by 12% annually through 2026, are further fueling investor interest in this lucrative market segment.