Dubai’s branded residences sector is set for substantial expansion, with standalone projects expected to make up 54% of the market, representing 78% of new developments over the next four years in Dubai. This signals further growth in the branded residences segment within the city’s real estate landscape.

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Over the past decade, the branded residences market in Dubai has witnessed a remarkable 410% growth, surging from ten projects in 2014 to 51 projects today. In the last five years alone, the sector has experienced a 122% increase, with the number of projects rising from 23 to 51, according to data presented by Riyan Itani, Founder and Director of Global Branded Residences (GBR).

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Itani revealed these findings at ‘The Future of Branded Residences’ event in Dubai, jointly organized by GBR, Sectorlight—a real estate branding specialist—and De Leeuw International. The event attracted industry leaders from top hoteliers, real estate developers, consultants, and lifestyle brands keen on exploring collaboration opportunities.

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The data presented by GBR indicates a shift in market dynamics, with the proportion of hotel brands in the existing market projected to decline from 78% to 51% by 2028. This signals a growing preference for dynamic lifestyle-driven branding and underscores the challenges faced by hotel brands due to existing agreements and geographical constraints.

With hotel brands facing limitations, developers in Dubai are increasingly turning to innovative non-hotelier brands to differentiate their projects. Brands from sectors such as automotive and fashion are gaining traction, with fashion brands representing 36% of the development pipeline, up from 10% in the existing market.

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According to Rich Stevens, Managing Director & Chief Creative Officer of Sectorlight, partnering with renowned lifestyle brands offers developers a unique opportunity to stand out in a competitive market. Projects like Mercedes-Benz Places by Binghatti and Armani Beach Residences by Arada are leading examples of this trend.

Robert Gill, Director of De Leeuw International, emphasized the importance of understanding market dynamics and leveraging accurate financial data for success in the branded residences market. He highlighted the region’s exceptional growth and its impact on the built environment, enabling developers to make informed decisions with confidence.