UAE Branded Residence Market Surges 126% in Abu Dhabi, Driven by Luxury Demand and Economic Growth
Dubai – The latest UAE Branded Residence Report from CBRE Middle East reveals a significant increase in demand for luxury living and branded real estate across the region. This growth is attributed to strong economic fundamentals, an influx of international wealth, and a burgeoning pipeline of branded projects in Dubai, Abu Dhabi, and Ras Al Khaimah.
The UAE’s economy is projected to grow by 5.3% in 2025, bolstered by diversification into non-oil sectors and sustained investor confidence. This economic resilience has coincided with record inflows of high-net-worth individuals (HNWIs), establishing the Emirates as a prime destination for wealth migration. Branded residences have become a favored asset class for these investors, offering recognized quality, security, and convenience.
Rise of the Everyday Millionaire
The report emphasizes the increasing importance of the “Everyday Millionaire” (EMILLI) segment, individuals with assets ranging from $1 million to $5 million. This group is playing a crucial role in driving real estate growth. Branded residences, with their appealing amenities and association with reputable brands, serve as an attractive entry point for both HNWIs and EMILLIs. Each emirate—Dubai, Abu Dhabi, and Ras Al Khaimah—presents unique value propositions tailored to various wealth segments and investment strategies.
Dubai: The Epicenter of Branded Residences
Dubai continues to dominate the branded residences market, experiencing a 26% year-on-year increase in transaction volumes and a 51% rise in value during the first nine months of 2025. Investors are paying an average premium of 64% for branded units compared to non-branded properties. The city’s allure stems from its brand prestige, integrated lifestyle offerings, investor confidence, safe-haven status, and tax advantages. While off-plan sales are prevalent, the availability of ready-to-move units remains limited and concentrated in established areas. The city’s future pipeline is robust, with over 31,000 units expected to be delivered by 2030, accounting for 8% of the total new residential supply.
Abu Dhabi’s Rapid Growth
Abu Dhabi is emerging as a formidable player in the branded residences sector, with transaction volumes soaring by 126% year-on-year in 2025. Branded residences in the capital command an average premium of 87%, reflecting both scarcity and the appeal of globally recognized hospitality and lifestyle brands. The segment’s share of new supply deliveries is anticipated to reach 18% by 2029, supported by landmark projects on Saadiyat and Yas Islands. The increase in market share for branded residences is driven by positive market dynamics and rising foreign investment, further bolstered by significant announcements, including the planned opening of Disneyland. The future pipeline includes over 2,700 branded units across more than 20 projects, featuring a mix of hospitality and non-hospitality brands, which will enhance Abu Dhabi’s luxury offerings and attract further foreign investment.
Al Khaimah’s Transformation
Ras Al Khaimah (RAK) is rapidly becoming one of the fastest-growing segments in the UAE’s branded residence market. This growth is fueled by strong economic expansion and a clear tourism strategy that leverages the Emirate’s natural assets and adventure offerings. RAK has shifted from a value-driven market to a luxury destination, catalyzed by the announcement of the Wynn Al Marjan resort, which has spurred demand and initiated a construction boom. The supply pipeline is expanding, with branded units expected to significantly increase their share of new supply. Notably, the rise of non-hospitality branded residences indicates the market’s maturation and its appeal to a diverse range of international investors.
Matthew Green, Head of Research at CBRE MENA, stated that branded residences have transitioned from a niche offering to a defining feature of the UAE’s luxury real estate landscape over the past five years. This growth reflects a convergence of global wealth migration, investor demand for quality and security, and the UAE’s positioning as a hub for ultra-luxury living. With an unprecedented pipeline of projects, this segment is expected to play an increasingly influential role in shaping the region’s residential market.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE) is a Fortune 500 and S&P 500 company based in Dallas, recognized as the world’s largest commercial real estate services and investment firm based on 2024 revenue. The company employs over 140,000 professionals globally, serving clients in more than 100 countries. CBRE offers a comprehensive suite of services, including facilities, transaction and project management, property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services.
About CBRE in the MENA Region
CBRE Group has been serving clients in the Middle East for over twenty years, with more than 1,400 professionals operating from nine offices across six countries. The firm collaborates with investors, financiers, and occupiers to provide an integrated suite of services, including facilities, transaction, and project management, cost management, property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services.
Contact:
Inci Gecekusu
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As reported by www.zawya.com.
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Published on 2025-12-19 12:00:00 • By FAME Delivered News Desk