Are you considering getting into Dubai’s luxury property market? Under-construction branded residences in Dubai are about 10% more inexpensive than their prepared counterparts. This rate distinction offers an attractive investment opportunity for consumers aiming to maximize capital earnings, as these properties are predicted to increase in value as quickly as completed.
Dubai: Under-Construction Branded Residences 10% Cheaper Than Ready Units
Dubai’s real estate market thrives, and the branded residences segment is a standout. In the first half of 2024, a total of 5,592 branded residences were sold, representing a significant value of AED 28.8 billion. These figures indicate that branded residences accounted for 7.2% of all property transactions and 12.6% of the total value of property transactions in Dubai during this period. These statistics reflect the growing appeal of branded residences and properties associated with well-known brands that provide an additional layer of prestige and quality.
Typically offering top-tier amenities, exclusive designs, and premium locations, branded residences cater to high-net-worth individuals and discerning buyers. As the demand for luxury properties grows, branded residences have become a key driver in Dubai’s thriving real estate market.
Key Factors Driving Growth In The Branded Residences Segment
Several factors drive the growth in branded residences. First, these properties combine the value of luxury living with the added appeal of brand association. Buyers are willing to pay more for properties linked with globally recognized names because they trust the brand’s reputation for quality and exclusivity. This trend is evident in the increasing transaction volumes and rising values in this sector.
Year-on-year, the number of branded residence transactions in Dubai has surged by 44%, with the total value of investments in this segment rising by 25%. These figures highlight the robust performance of branded residences, even in a competitive real estate market. Investors recognize the long-term value of these properties, leading to steady demand despite economic fluctuations.
The Price Advantage Of Under-Construction Properties
One of the most compelling reasons to consider under-construction branded residences is the cost advantage. These properties are, on average, 10% cheaper than their ready counterparts. For investors and end-users alike, this price gap provides a valuable entry point into the luxury real estate market. By purchasing an under-construction unit, buyers can benefit from potential capital gains as the property’s value appreciates over time.
This dynamic underscores the confidence in Dubai’s real estate market and highlights the appeal of branded residences as a long-term investment. Investors who buy at the development stage often see significant returns upon project completion, making this an attractive strategy for those looking to maximize profitability in a growing market.
Also Read: Dubai Off-Plan Projects: Some Developers Demand Up To Half Of Payment Within 14 Months
Strong Demand For High-End Branded Residences
Branded residences are particularly attractive to high-net-worth individuals who prioritize quality, exclusivity, and brand prestige. In the first half of 2024, one of the most notable transactions in this segment was a 47,700-square-foot villa in The Ritz-Carlton Residences at Creekside, which sold for AED 165 million. This property, priced at AED 3,472 per square foot, highlights the ability of Dubai’s branded residences market to attract affluent buyers who are willing to invest in premium properties. The demand for such properties is not just about luxury living but also about securing a stable investment.
High-net-worth individuals are drawn to these branded residences because they offer a blend of lifestyle and investment potential. The association with a well-known brand provides added security and enhances the property’s long-term value.
Premium Pricing For Branded Residences
One of the defining characteristics of branded residences in Dubai is the substantial premium they command. On average, buyers pay 69% more per square foot for branded residences compared to non-branded properties in the same locations. This premium is significantly higher than the global average, reflecting the high level of trust and confidence that investors place in Dubai’s branded properties. Among branded residences in Dubai, beachfront properties attract the highest premiums.
Areas such as Umm Suqeim, Jumeirah Beach Residence (JBR), and Pearl Jumeirah are known for their prime coastal locations and exclusive waterfront lifestyles. The combination of beachfront living and the prestige of branded properties drives up demand and prices in these locales. Buyers are drawn to these areas not just for the location but for the lifestyle that comes with it. The combination of luxury brands, scenic views, and high-end amenities creates a unique offering that is hard to match.
The exclusivity of living in a branded residence on the waterfront adds to the property’s appeal, resulting in significant premiums.
The Future Of Branded Residences In Dubai
The branded residences market in Dubai is expected to continue its growth trajectory. With more developers partnering with global brands and new projects in the pipeline, the market is set to expand further. The combination of brand prestige, luxury amenities, and prime locations will keep these properties in high demand, making them a key segment of Dubai’s real estate landscape. For investors, the potential for capital appreciation in under-construction branded residences remains a key attraction.
As more projects reach completion, these properties are likely to see significant value gains, offering substantial returns for those who invest early.
Arshad Darbar’s Thoughts
Arshad Darbar, a seasoned real estate expert with extensive market experience, views the recent findings about Dubai’s under-construction branded residences as a significant opportunity for investors. According to Darbar, the fact that these properties are approximately 10% cheaper than ready units presents a strategic advantage for those looking to maximize their investment potential. He emphasizes that this price gap not only makes high-end real estate more accessible but also offers a chance for substantial capital gains as the properties are near completion.
Darbar notes that the growing appeal of branded residences, coupled with their lower entry costs, reflects strong market confidence and increasing demand for luxury properties. He highlights that the trend underscores the robustness of Dubai’s real estate sector and its ability to attract both local and international investors. For buyers considering long-term investments, Darbar believes that under-construction branded residences offer a compelling opportunity to benefit from future value appreciation in a thriving and resilient market.
Conclusion
Dubai’s under-construction branded residences offer a unique investment opportunity. With prices approximately 10% lower than ready units, these properties provide an entry point into the luxury market with the potential for future value appreciation. The strong demand for branded residences, driven by their association with global brands and premium locations, ensures their continued appeal among high-net-worth individuals and investors.
As Dubai’s real estate market continues to evolve, the branded residences segment remains a standout, offering a blend of luxury living and investment potential. Whether it’s a beachfront property with a prestigious brand or a spacious villa in a well-connected community, Dubai’s branded residences cater to a diverse range of buyers, ensuring that this market remains vibrant and lucrative.
