Dubai branded residence rents double

dubai skyline

In Dubai, branded homes can fetch twice as much rent as non-branded homes because of the opulent amenities and strong demand from wealthy buyers for apartments in these developments.
According to industry executives, luxury and branded homes are more likely to see price increases than other segments of the market.

They went on to say that because high net-worth individual buyers are coming to Dubai to stay, the market is maturing and Dubai is no longer a transitional market.
Investors, landlords, and tenants seem aligned on rental premiums for high-quality ‘branded residences’. These contemporary, well-planned living spaces within desirable residential buildings provide luxurious amenities and can command up to 100 percent higher rents than ‘non-branded’ unitswithin similar locations.

Due to the strong demand, Dubai has seen several branded residence launches in recent years, placing it at the top of the world rankings. As the world’s affluent elites flocked to the emirate, local developers like Binghatti Properties, Danube Properties, RSG Group, Rove, and others launched branded residences to capitalize on the demand.

Following the debut of Burj Binghatti Jacob & Co. and Bugatti Residences by Binghatti, Binghatti Properties unveiled another branded residence last week: Mercedes-Benz Places. To debut Fashionz by the Danube, which consists of more than 700 apartments distributed over 65 stories, Danube
Properties partnered with Fashion TV.

The growth predicted that until ready off-plan rental units at a scale able to meet the current level of rental demand enter the market in 2025–2027, the Dubai rental market would continue to perform well for landlords and investors.
Data shows that luxury homes have a larger potential for price increases than the rest of the market and that it anticipates a high level of interest from buyers and investors in the prime and branded residences market segment.

This is due to the demand for readily available secondary inventory, and the limited supply of new prime properties that are expected to come to market in the most prestigious locations in 2024. These conditions will continue to drive sales prices upwards, resulting in sustained capital appreciation and high rental yield opportunities for properties within Dubai’s most desirable residential locations.

Knight Frank’s latest data showed that Dubai became the top city in the world in terms of $10 million-plus homes. In total, 431 luxury homes were sold last year in Dubai, surpassing New York (159), London (150), Hong Kong (148) and Los Angeles (13).

Buyers coming to Dubai for quality

According to data high-net-worth individuals have been moving to Dubai for the past two or three years following the COVID lockdowns. Part of their reason for doing so is that Dubai has no real estate tax, which has caused
prices to soar.

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