Branded residences have quickly emerged as the spotlight attraction in the United Arab Emirates (UAE) and the broader Middle Eastern real estate landscape. More than just luxurious living spaces, these properties imbued with prestigious brands promise to elevate buyer experience, investor confidence, and overall valuation. Developers are leveraging the allure of well-known names, operating on the notion that associating a reputable brand—no matter its origin—can drastically enhance marketability and fetch premium prices.
The Middle East, particularly known for its opulent real estate offerings, has seen a myriad of esteemed names entering the market. From Baccarat to Mandarin Oriental, and from Nikki Beach to W Hotels, this burgeoning trend demonstrates that branded residences are no mere fad but rather a significant evolution in the luxury housing sector.
The Global Landscape
Examining the global perspective, the branded residences market is undoubtedly on fire. A report from property consultancy Savills highlights that currently, there are 740 completed projects, with an additional 790 anticipated by 2031. Notably, Dubai stands out, with nearly 20 percent of this global pipeline, boasting approximately 140 branded developments. This remarkable growth is primarily driven by hospitality brands, which command a staggering 80 percent of the market share. Renowned names like Ritz-Carlton and Four Seasons are paving the way for this impressive expansion.
Why the Allure?
The appeal of branded residences lies in their ability to offer long-term value and a sense of exclusivity alongside diversified real estate exposure. In markets like Miami, even non-hospitality brands are making their foray into this domain. High-fashion labels like Armani and luxury automotive brands such as Aston Martin have entered the scene, tapping into loyal, affluent customer bases looking for more than just a home—a lifestyle.
Introducing F&B Brands into the Mix
Interestingly, food and beverage (F&B) brands are now also vying for their share of this lucrative market. Their entry brings lifestyle elements and a dedicated clientele, wrapped in unique aesthetics and brand philosophies. The key question remains, however: Do these F&B brands yield the same price premiums as their illustrious hotel counterparts? Furthermore, do they provide enduring value for investors?
Dubai: A Case Study
Diving deeper into the local market, Dubai’s growth in branded residences has been nothing short of staggering: it escalated from just 21 projects in 2015 to a projected 132 by 2024, as per Cavendish Maxwell’s Property Monitor. Among these, 23 brands from outside traditional hospitality spheres—including fashion, jewelry, automotive, and increasingly, F&B—are now establishing a foothold.
Take, for example, Nikki Beach, a premium F&B brand that has recently launched its debut project with Meraas in Dubai. Pricing for three-bedroom units initially stood at AED 2,100 per square foot, which was below the local average of AED 2,700. However, by 2025, resale prices had skyrocketed to AED 5,649 per square foot—a remarkable 15 percent premium over similar properties. This illustrates the potential for significant financial returns when F&B brands enter the real estate arena thoughtfully.
Ras Al Khaimah’s Real Estate Boom
Meanwhile, Ras Al Khaimah (RAK) is emerging as another promising location for F&B-led real estate ventures. The development of Wynn alongside new emerging brands indicates a shift in residential dynamics within the emirate. Nikki Beach is also expected to launch off-plan residences in RAK, starting at AED 2.3 million, with anticipated returns reaching up to 30 percent by 2028.
Branded Residences: A Unique Offering
Brands like Nobu are showcasing an innovative approach by making their first inroads into residential living. Nobu’s inaugural project, the Nobu Hotel Los Cabos, marked the beginning of its expansion, which now includes eleven ongoing projects—five of which are situated in the Middle East. In Abu Dhabi, pricing starts around AED 8 million for approximately 1,300 square feet, averaging AED 6,153 per square foot—significantly above the local price at Mamsha Al Saadiyat, which hovers around AED 4,377.
On another front, Cipriani ventures into real estate with its Mr. C Residence brand, where property prices in Miami reach about $8,575 per square foot—nearly ten times the local average. In Dubai, Cipriani plans to offer units starting at AED 3,640 per square foot, again positioning it above Downtown Dubai’s overall average.
The Premium Dilemma
However, not all branded residences are created equal. Renowned luxury hospitality brands such as Bulgari or Raffles command substantial price premiums—often justifiable given their superior location, design, exclusivity, and exceptional service. For instance, the Bulgari Residences in Jumeirah saw a staggering price increase of nearly 300 percent within four years, now exceeding AED 13,000 per square foot.
Conversely, F&B brands must navigate distinct challenges in the residence market. While they may shine in providing unique dining experiences and brand prestige, they often lack the comprehensive operational infrastructure of hotel giants. Services crucial for luxury living—like housekeeping, concierge offerings, and loyalty programs—are typically absent, meaning buyer expectations need to be carefully managed.
The Future of Lifestyle Brands
The ownership of brands by local developers can sometimes ease these operational hurdles, ensuring consistent quality and service. Yet the sustainability of a premium price tag will hinge on maintaining high service standards and preserving the integrity of the brand. As F&B brands venture into real estate, they’re not solely capitalizing on a trend; they’re also looking to build an expansive ecosystem. Each branded residence associated with a flagship hotel secures a stream of long-term revenue through service charges and management fees, offering a reliable income avenue while enhancing brand loyalty.
This synergy between lifestyle, hospitality, and real estate also resonates deeply with buyers on an emotional level. Ownership redefines personal value beyond just square footage—it’s an investment in a story, an experience, and a unique lifestyle. As F&B branded residences gain traction, only time will illuminate whether they can match or even surpass the value derived from traditional hospitality giants.
On the horizon lies a fascinating shift in the luxury real estate narrative, juxtaposing the prominence of F&B brands against established hospitality players. As the market continues to evolve, the role of lifestyle and dining in shaping luxury living remains a conversation worth keeping an eye on.
