A majority of global high net worth individuals (HNWI) are keen to acquire a branded residential property in the emirate, according to global property consultancy, Knight Frank’s Destination Dubai 2023 flagship research publication.

Knight Frank highlights that branded residences are already a significant component of the market and accounted for an impressive AED25.4 billion in sales last year, which equates to 19.2% of all apartment sales in the city.

Faisal Durrani, Partner – Head of Middle East Research, explained: “Dubai now boasts the highest concentration of branded residential operators in the world and global HNWI view the sector as one that offers instant access to the ‘Dubai lifestyle’. While 52% of global HNWI have their sights set on a branded home in Dubai, at 85%, East Asian buyers, encompassing those from Singapore, Hong Kong and mainland China, are even more keen.

“The prestige of a home associated with a luxury global brand, combined with world-class property management and the high rental yield are among the top reasons that drive HNWI when considering a branded residence in Dubai”.

Knight Frank’s research has also found that the nature of buyers in Dubai has undergone a sea change compared to previous market cycles.

Durrani added: “With 30% of HNWI around the world eyeing up a branded residence in Dubai for a second home and a further 13% looking at options as a primary home, there is a clear shift in the flavour of buyers targeting the city. Gone are the buy-to-flip investors of previous cycles. Indeed, two-thirds of all global HNWI are looking at acquiring a home in Dubai as a second home, highlighting just how much Dubai’s profile has changed since the onset of the pandemic. Buyers from Monaco and Switzerland now jostle alongside those from traditional source markets like the UK and India.”

Knight Frank has also found that budgets for branded residential purchases vary substantially by where HNWI reside. Most of those in North America, for instance, are prepared to spend up to $800 per sq ft, while the bulk of those in East Asia would like to spend between $1,000 and $1,500 per sq ft. Meanwhile, HNWI from the UK and Europe have the deepest pockets, with most from these regions ready to spend between $1,500 and $2,000.

Lars Jung-Larsen, Head of Luxury Brands, highlighted: “The arrival of luxury brands such as The Dorchester, Ritz Carlton, Four Seasons, Mama Shelter, and Mr C are themselves fuelling demand. From a developer’s perspective, partnering with a luxury brand helps to unlock hidden premia, while consumers’ seemingly relentless appetite for haute-living options in Dubai is being satisfied in style.”

With demand for a branded residence in Dubai rising to 69% among global HNWI with personal wealth exceeding $10 million, several locations across Dubai are fast emerging as global hotspots for branded residential operators and developers, according to Knight Frank.

Tareq Darwish, Associate Partner, Head of Project Sales and Marketing, concluded: “Business Bay is one such area. The high concentration of branded residential properties in Business Bay has solidified Dubai’s standing in the global market. As premium waterfront plots become scarce, Dubai Canal and

Central Dubai are emerging as the new frontiers in the city’s real estate landscape with Marasi Drive rapidly establishing itself as a prominent player. Alongside Business Bay, The Palm Jumeirah and Downtown Dubai also enjoy significant popularity when it comes to branded residences.”