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Arabian Business
2 days ago
- Business
- Arabian Business
The great wealth migration: How Dubai became the world's top millionaire magnet
In recent times, Dubai has seen sharp growth in the number of high-net-worth individuals (HNWIs) relocating to the country. The UAE has solidified its position as the top destination for millionaires, with an increasing inflow of wealthy individuals — more than any other country in the world. In an exclusive interview with Arabian Business, Louis Harding, CEO of Betterhomes Dubai, said: 'Wealth is moving where it's treated best. Dubai's appeal to HNWIs lies in a rare combination: zero income tax, political stability, world-class infrastructure, and a strategic location within an 8-hour flight to two-thirds of the world's population. It's not just about escaping taxes — it's about building a secure, global life. The city now offers what few others can: capital preservation, mobility, and clarity in an uncertain world.' According to a recent report by Betterhomes, the UAE emerged as the 14 th largest wealth market globally, housing 130,500 dollar millionaires, indicating a 98 per cent surge in the last decade. The unprecedented migration represents a fundamental shift in global wealth patterns, driven by a complex interplay of economic policy, geopolitical uncertainty and the country's strategic positioning between the East and the West. The scale of millionaire migration to Dubai is staggering, with numbers currently at a record high, surpassing previous records of 128,000 millionaires in 2024 and 120,000 in 2023. As part of this global movement, the UAE captures more than any other single destination, accounting for over 5 per cent of all millionaire revocations worldwide. Recent data reveals that the millionaire migration numbers are expected to reach over 142,000 millionaires this year. Of this, Dubai stands to gain 7,100 new millionaires and $7.1 billion (AED 26 billion) in capital, nearly half the value of Dubai's total foreign direct investment (FDI) in 2024. The numbers suggest that the trend is not necessarily a temporary phenomenon, but rather a structural shift in global wealth distribution. 'The shift is structural, not cyclical. The UAE saw a 98 per cent increase in millionaires over the last decade, reaching 130,500 HNWIs by the end of 2024. Dubai alone ranks as the fastest-growing hub for centi-millionaires ($100mn+) globally, ahead of Miami, Milan, and even Shenzhen. In contrast, legacy hubs like London and Paris are experiencing outflows due to rising tax pressures and political instability,' Harding explained. The British exodus The appeal of Dubai is more evident, particularly in the dramatic inflow of migration from the United Kingdom. Earlier this year, Arabian Business reported that Dubai and Abu Dhabi are set to see a rising number of HNWIs amid the ongoing exodus of wealthy individuals from the UK despite some steps toward softening the Labour government's highly controversial non-dom tax reforms. 'It appears there is some backpedalling on the UK government's attack on non-doms. However, the Labour Party's proposed changes to the non-dom tax regime, even with Rachel Reeves' apparent watering down, still risk driving high-net-worth individuals away from London,' said Karim A. Youssef, a leading arbitration lawyer and dispute resolution expert. Britain is expected to see an unprecedented net loss of over 9,500 millionaires this year, second to only China worldwide, and more than double the 4,200 who left the country last year. Nearly a thousand HNWIs from the UK are set to make Dubai their new home. With nearly 9,500 UK-based millionaires expected to leave the country this year, the UAE is fast becoming a prime destination for expats seeking new opportunities. This exodus reflects broader concerns about the UK's evolving tax landscape and potential climate. Many wealthy Britons cite increasing wealth taxes, inheritance tax complications, and political uncertainty as primary drivers of their decision to relocate. Dubai's appeal to this demographic extends beyond tax considerations to include factors such as weather, lifestyle, and business opportunities in emerging markets. Aside from wealthy individuals, Dubai is also seeing an increasing number of Middle-class families from the UK relocating to the UAE. Industry experts attribute this shift to several factors, including the UK's recent introduction of VAT on private school fees, opportunities of remote work and Dubai's increasing status as a global hub. In addition, Harding noted, 'The new wave includes not just legacy wealth but tech founders, crypto entrepreneurs, and global business leaders establishing family offices. They're not buying holiday homes – they're relocating teams, setting up businesses, and planting flags. It's a more entrepreneurial, mobile, and future-focused cohort, reshaping what wealth looks like in the region' The Indian connection India represents another significant source of millionaire migration to Dubai. According to a recent report by Driven Properties titled Global Millionaire Migration to the UAE 2025, the highest millionaire losses occurred in China, the UK and India. Over 4,300 millionaires are expected to move from India this year, this reflects growing wealth creation in India and the traditional commercial ties between the two regions. For Indian entrepreneurs and investors, Dubai offers several compelling advantages. The emirate serves as a natural hub for accessing African and Middle Eastern markets, while its robust financial infrastructure provides sophisticated wealth management services. Central to Dubai's appeal is the UAE's Golden Visa programme, which has fundamentally altered the landscape for long-term residency. The Golden Visa is a long-term residence visa which enables foreign talent to live, work or study in the UAE while enjoying exclusive benefits. The UAE's tax structure remains perhaps the most compelling factor driving millionaire migration. The country's Golden Visa comes with tax benefits that offering a compelling advantage for HNWIs. The tax-free environment creates substantial wealth preservation opportunities. For HNWIs facing increasing tax burdens in their home countries, the UAE offers not just tax efficiency but also the ability to structure global investments and businesses through Dubai's sophisticated financial centre. 'Tax is just the starting point, not the full story. Dubai's low-tax regime opens the door, but what keeps HNWIs here is the ecosystem: personal safety, political neutrality, modern infrastructure, and a globally connected lifestyle. In short, Dubai offers both asset protection and quality of life — two things increasingly hard to find in the same place,' Harding said. He also revealed that the influx is highly diverse. HNWIs are arriving from: From EU nations as well (particularly from high-tax countries like Germany and France) East Asia (e.g. Chinese and Vietnamese investors reacting to domestic policy and political uncertainty) Turkey and Argentina (seeking refuge from currency and systemic volatility) UK and US (as a strategic choice for wealth preservation and business growth) Dubai's elite magnetism While tax benefits capture headlines, the lifestyle and infrastructure improvements in Dubai has created a strong proposition for affluent families. Dubai's luxury lifestyle amenities are another reason for the magnetism. The city offers world-class healthcare, international schooling options, and a cosmopolitan environment that appeals to global citizens. The safety factor is evident, Dubai consistently ranks among the world's safest cities, a crucial consideration for families with significant wealth. Infrastructure investment have also paid dividends. Dubai International Airport serves as a global hub, while the city's business districts rival those of London, New York and Singapore in terms of facilities and connectivity. Push and pull factors The migration to Dubai reflects both 'push' and 'pull' factors operating globally. The report identifies key global 'push' factors influencing millionaire migration, including increasing wealth taxes, political instability, and tightening immigration policies. These are contrasted with Dubai's appeal as a tax-efficient, safe and globally connected lifestyle hub. Push factors vary by region but include: Increasing wealth and inheritance taxes in Europe Political uncertainty in several major economies Currency instability in emerging markets Regulatory tightening in traditional financial centers COVID-19 policy responses that restricted movement Dubai's pull factors have evolved beyond the traditional tax haven model: Strategic location between Europe, Asia, and Africa Advanced digital infrastructure and smart city initiatives Growing importance as a fintech and cryptocurrency hub Expanding cultural and entertainment offerings Government policies explicitly welcoming global talent Economic impact and multiplier effect The economic implications of this millionaire migration extends far beyond the individuals themselves. According to Henley & Partners, 20 per cent of HNWIs are entrepreneurs (rising to 60 per cent for centi-millionaires and billionaires). As a result, countries that attract HNWIs from other parts of the world might see benefits such as job creation and investment. 'This is no longer speculative money. We're seeing long-term, strategic capital flowing into legacy properties, branded residences, and high-quality developments. This wave of migration is turning Dubai's property market into a structural asset class, not just an investment cycle. If just 5 per cent of the projected 142,000 migrating millionaires in 2025 choose Dubai, that's a potential $7.1 billion in fresh liquidity — nearly half of Dubai's total FDI in 2024,' Harding explained. These entrepreneurs often establish new businesses, invest in local markets, and create employment opportunities. The country's strategic focus on economic diversification benefits directly from this influx of business talent and capital. Real estate markets provide the most visible impact. High-end property purchases by relocating millionaires have contributed to price appreciation in prime locations in Dubai. 'While preferences vary, demand is clearly concentrated in trophy assets and global-branded residences, developments that signal permanence and prestige. Think of locations like Jumeirah Bay Island, Palm Jumeirah, and Emirates Hills. Areas where land is finite, privacy is built-in, and pricing is being reset by global demand. These are not just homes; they're wealth anchors,' he revealed. However, these effects ripple through luxury retail, private banking, legal services and family offices – creating entire ecosystems around wealth management. Despite the clear momentum, the millionaire migration trend faces several potential obstacles. Global tax policy coordination efforts, such as the OECD's international tax initiatives, could potentially affect the tax advantages that currently drive much of this movement. The UAE also addressed concerns about financial transparency and anti-money laundering measures. Recent regulatory enhancements, while necessary for international compliance, adds layers of complexity that some wealth migrants must navigate. Cultural adaptation remains a consideration for some relocating families, particularly those from Western countries. While Dubai has evolved into a highly international city, differences in legal systems, business practices, and social norms require adjustment periods. The sustainability of Dubai's millionaire magnetism depends on several factors. The city's continued economic diversification away from oil dependence strengthens its long-term appeal. Major initiatives in renewable energy, space, technology and artificial intelligence (AI) signal ambitions beyond traditional wealth management. 'This is a permanent shift. Dubai is no longer a pit stop for the wealthy, it's the finish line. As global volatility rises and traditional centres become harder to navigate, cities like Dubai that offer clarity, control, and capital security will define the next generation of wealth hubs. The real question isn't whether the millionaires are coming, it's how fast the city can build to meet the demand,' Harding concluded.
Time of India
2 days ago
- Business
- Time of India
Every 30th adult now a millionare: UAE adds 13,000 dollar millionaires in 2024
In 2024, the UAE gained 13,000 millionaires, bringing the total to 240,000 with $785 billion in wealth/ Image: X The United Arab Emirates continued its meteoric rise on the global wealth map in 2024, adding approximately 13,000 new millionaires, according to the UBS Global Wealth Report 2025 , released Wednesday. This fresh wave of high-net-worth individuals (HNWIs) pushed the UAE's millionaire count to a striking 240,343, marking a 5.8% year-on-year increase. This growth makes the UAE the second-fastest-growing millionaire market, trailing only Türkiye, which experienced an 8.4% rise. A good number of these newly created millionaire base in the UAE came about from re-locations, as has been the case for four years now. Aaccording to the Swiss bank: 'In 2024, Turkey stands out from the crowd thanks to an 8.4% increase in its number of dollar millionaires over 2023, equivalent to a boost of roughly 7,000 people in a single year. The UAE (had) a rise of 5.8% in millionaire numbers, thanks to approximately 13,000 new entrants in this category.' To put it in human terms: According to Worldometers data, the UAE's population grew by 385,048 last year. While the total population is estimated at around 11 million, adults in their prime working years (25-54) number a substantial 7.28 million. With such a high concentration of wealth, effectively about one in every 30 adults or economically active individuals in the UAE is a millionaire. Where the Wealth Lives: UAE's $785 Billion in Private Hands The country's HNWIs now collectively control about $785 billion (Dh2.88 trillion) in wealth. Meanwhile, the average wealth per adult in the UAE currently stands at $147,663. According to the report: 62% of this wealth is held in financial assets, from equities and bonds to private investments. The remaining 48% resides in non-financial assets, primarily real estate and land, long considered pillars of wealth preservation in the Gulf. This concentration of wealth is clearly reflected in the UAE's property and investment markets. According to Knight Frank, a notable influx of high-net-worth individuals from Saudi Arabia, India, China, and the UK is driving larger, multi-million dollar deals, particularly in premium locations such as Jumeira Bay Island. Paul Donovan, Chief Economist at UBS Global Wealth Management, in a statement highlighted the broader implications of this capital accumulation: 'Wealth is not just an economic measure – it's a social and political force. As we navigate the fourth industrial revolution and rising public debt, the way wealth is distributed and transferred will shape opportunity, policy, and progress.' Generational Shifts: $19 Billion in Wealth Transfers Expected One particularly notable trend in the UAE is the coming wave of wealth transfers. UBS estimates that the country will see $19 billion (Dh70 billion) in intra- and inter-generational transfers. That figure represents 1.4% of the UAE's total private wealth. This includes wealth moving between: Spouses, such as from a widow or widower to their partner. Generations, especially from older family members to children or grandchildren. Globally, the report expects over $83 trillion to change hands in the next two to three decades, most significantly in the: United States: over $29 trillion Brazil: nearly $9 trillion Mainland China: more than $5 trillion Wealth Rankings: Where the UAE Stands Globally and Regionally Regionally, the UAE ranks second in the Middle East for millionaire population: Saudi Arabia: ~340,000 millionaires UAE: 240,343 Israel: 186,000 Globally, Switzerland maintained its position as the wealthiest nation by average adult wealth: Switzerland: $687,166 United States: $620,654 Hong Kong: $601,195 Luxembourg: $566,735 Australia: $516,640 By contrast, while the UAE's average per adult ($147,663) trails these top-tier economies, its pace of wealth creation—and wealth attraction, signals an upward trajectory. Inflow of Wealth: Why Millionaires Are Moving to the UAE Not all of the 13,000 new millionaires in the UAE were homegrown. According to Knight Frank , citing Henley & Partners data, the UAE attracted 7,200 millionaires from abroad in 2024, a 53% increase from the previous year. This surge in financial migration brings the total number of resident HNWIs to 130,500, as reported earlier. Industry experts suggest that favorable tax policies, political stability, and high-end infrastructure continue to make the UAE a magnet for mobile global wealth. A Global Picture: Wealth Growth Tilted to the Americas While the UAE experienced notable domestic gains, the global wealth landscape also saw overall expansion: Global private wealth rose by 4.6% in 2024, up from 4.2% in 2023. Most of the increase came from North America, where stable currencies and strong financial markets drove momentum. The Americas led with more than 11% of global wealth growth. In contrast, the Asia-Pacific and EMEA (Europe, Middle East, Africa) regions saw sluggish growth: below 3% and 0.5%, respectively.
Khaleej Times
2 days ago
- Business
- Khaleej Times
Dubai's luxury home market sees Dh10m-plus sales multiply 10-fold
Dubai's luxury real estate market is witnessing an extraordinary boom, with sales of homes priced over Dh10 million rising 10-fold in just four years. This surge highlights the emirate's growing appeal to global high-net-worth individuals (HNWIs), backed by investor confidence, world-class developments, and lifestyle-focused planning. According to Savills Middle East's latest 'Dubai Prime Residential 2025' report, the number of Dh10 million-plus transactions surged from just 469 in 2020 to 4,670 in 2024. In the first quarter of 2025 alone, more than 1,300 properties at this price point changed hands — representing a 31 per cent year-on-year increase. Luxury property experts attribute this trend to a mix of attractive factors including Dubai's reputation as a safe and stable investment hub, its residency-linked property incentives, and growing demand for privacy, larger living spaces, and exclusive lifestyle offerings. 'Dubai's prime residential market continues to attract high-net-worth individuals seeking space, privacy and superior lifestyle quality,' said Andrew Cummings, head of Residential Agency at Savills Middle East. 'This is particularly evident in the consistent demand for luxury villas and branded residences.' V. Sivaprasad, chairman of Condor Developers, said wealth migration remains a strong tailwind for Dubai's luxury home segment. 'Dubai continues to be a top relocation choice for HNWIs from Europe, Asia, and the wider Middle East, drawn by its tax-free environment, global connectivity, and evolving cultural landscape. The UAE's Golden Visa programme and strategic focus on lifestyle-centric urban planning are further reinforcing long-term interest in premium property,' said Sivaprasad. 'As the city builds on its fourth consecutive year of luxury market expansion, Dubai is poised not only to maintain but to elevate its status as one of the world's top-tier real estate investment destinations,' added Sivaprasad. The shift in buying patterns is also reshaping the market. Off-plan transactions — once seen as more speculative — have become mainstream in the luxury bracket. Off-plan sales now account for 69 per cent of all Dh10 million-plus deals, compared to just 14 per cent in 2020. This signals strong trust in the city's future inventory and confidence in developers' ability to deliver on time. New villa communities such as Palm Jebel Ali, District One West, and The Acres are among the most transacted prime locations, while premium apartments in Dubai Harbour, Palm Jumeirah, and Downtown Dubai continue to see strong buyer interest. Jumeirah Islands, a formerly quiet residential enclave, has become one of the most talked-about villa markets in the city. In 2024, 89 homes in Jumeirah Islands sold for more than Dh10 million — a sharp rise from virtually no such transactions before 2021. Many of these deals involved properties that underwent high-end renovations, suggesting that investors are willing to pay a premium for upgraded inventory in established communities. Data from the Dubai Land Department (DLD) supports these trends. In 2024, the emirate recorded over Dh450 billion worth of real estate transactions across all segments. But it is the luxury tier that is registering the highest velocity and value. Villas now dominate the Dh10 million-plus space, accounting for 70 per cent of such transactions in 2024. Even as villas command dominance, apartments in prime waterfront locations such as the Palm and Dubai Harbour are pushing pricing benchmarks higher. These units average Dh5,400 per square foot, a reflection of both limited supply and international appeal. Developers are catering to this premium demand by launching branded residences — luxury homes affiliated with global hospitality or fashion brands — which continue to outperform in terms of speed of sale and pricing. According to Savills, Dubai has emerged as the most active market globally for branded residences. The city is expected to deliver 40 per cent of all such developments across the Middle East and Africa by 2031. These projects typically offer curated amenities, security, and brand prestige, making them highly attractive to discerning international buyers. Supporting this trend are new large-scale masterplans announced across the city. Projects such as the redevelopment of Jebel Ali Racecourse and the second phase of Jumeirah Golf Estates, along with Emaar's Grand Polo Club and Resort, are expected to bring fresh luxury inventory into the market over the next few years. Analysts expect this momentum to continue. Savills projects an 8 to 10 per cent increase in prime residential prices through 2025, driven by sustained demand, lifestyle evolution, and Dubai's emergence as a global second-home destination. 'The next wave of development is aligning with the global luxury buyer's aspirations — bespoke living, branded experiences, and community-driven exclusivity,' said Cummings. 'Dubai's ability to deliver all these within an investment-friendly ecosystem makes its prime real estate market one of the most exciting in the world today.'
Gulf Business
11-06-2025
- Business
- Gulf Business
Abu Dhabi's luxury property market soars in 2025: Here's why
Image credit: Getty Images Abu Dhabi's luxury and branded real estate market is witnessing unprecedented growth in 2025, with branded residence launches quadrupling compared to the previous year, according to Metropolitan Capital Real Estate (MCRE), a real estate agency in Abu Dhabi. Read- The surge is being driven by increasing demand from high-net-worth individuals (HNWIs), international investors, and long-term residents. The market has already recorded Dhs6.3bn in luxury property transactions—valued at Dhs7m and above—within the first four months of the year, representing a 5 per cent year-on-year increase. Over half of these transactions were in the Dhs10m-plus segment, underscoring rising investor confidence in Abu Dhabi's premium real estate offerings. 'Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,' said Evgeny Ratskevich, CEO of MCRE. 'We've seen buyers who initially intended to purchase a single property expanding their portfolios. At the same time, long-term residents are increasingly choosing to buy rather than rent, reflecting growing confidence in the local market.' Rise of branded residences One of the strongest growth drivers in 2025 has been the rise of branded residences. Developers are actively launching lifestyle-focused communities across key areas including Saadiyat Island, Al Reem Island, and Mariah Island. The number of branded projects is expected to exceed 25 this year, a significant jump from just a handful launched in 2024. Notable developments include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, Mandarin Oriental Residences, and Nobu Residences. The latter recently set a new benchmark with a record-breaking Dhs137m penthouse sale—the highest residential transaction in Abu Dhabi's history. In parallel, the secondary luxury market has also seen explosive growth. Transaction volume in this segment increased 158 per cent year-on-year, with nearly Dhs3bn in resale activity by April. Super-luxury properties (priced above Dhs10m) accounted for more than Dhs2.6bn, making up 60 per cent of total secondary market sales. Super-luxury resale market In just four months, transactions in the super-luxury resale market have reached 22 per cent of the full-year total for 2024, highlighting growing investor interest in ready-to-move-in, high-end properties. MCRE has cemented its position as a market leader in Abu Dhabi's luxury sector, securing an 11.5 per cent share of the market for properties priced at Dhs7m and above. The firm facilitated over Dhs700m in sales in this category, including Dhs530m in the ultra-luxury bracket (Dhs10m and up), capturing 11 per cent of that niche segment. According to Ratskevich, branded residence prices now average Dhs2,500 to Dhs4,000 per square meter, depending on location. This is significantly lower than comparable offerings in Dubai or Ras Al Khaimah, making Abu Dhabi increasingly attractive to international investors. Shift in investor demographics Investor demographics have also shifted notably since 2024. While Russian and CIS buyers were dominant early last year, interest from those regions declined in Q2. In their place, buyers from the UK, US, UAE, and other GCC countries are stepping up. Nearly half of all purchasers are end-users, with the remainder being investors looking to capitalize on what they view as bargain prices for high-end properties. Key locations continue to drive market activity, with Saadiyat Island, Yas Island, Reem Island, and Al Hidayriyyat leading the charge. Al Hidayriyyat, in particular, has already surpassed 20 per cent of its total 2024 sales volume, positioning it as a fast-growing hotspot. To meet rising demand, MCRE has launched a dedicated luxury office—Metropolitan Capital Elite—on Saadiyat Island. The new division will cater exclusively to HNWIs, end-users, and institutional investors seeking access to premium and branded assets, offering tailored advisory services.
Arabian Business
11-06-2025
- Business
- Arabian Business
From Nobu to Wynn: Inside the UAE's branded residences arms race worth billions
The UAE is experiencing a surge in branded residences with buyers willing to pay premiums of up to 69 per cent per square foot for properties associated with international brand names, accelerating the country's growth as a hub for luxury real estate. Dubai is projected to double its branded residence projects by 2029, potentially overtaking established markets like New York and Miami, while Abu Dhabi has witnessed a fourfold increase in branded residence launches in 2025 alone, according to new market data. Meanwhile, Ras Al Khaimah is emerging as a key growth market driven by tourism potential and landmark developments, including the much-anticipated Wynn Al Marjan integrated gaming resort. 'Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,' said Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate. 'We have witnessed investors initially seeking to purchase a single property, ultimately expanding their portfolios due to a strong belief in the market's potential. We are also seeing an increase in the number of long-term residents who are opting to purchase properties in the market,' he added. The uptick is attributed to a fundamental shift in demand for luxury real estate, where high-net-worth individuals (HNWIs) are increasingly prioritising brand trust, service standards and experiential living over traditional property features. 'Branded residences aren't just for globe-trotting investors anymore – they're now the dream address for end-users who want to live like they're always on vacation,' said Kalpesh Kinariwala, founder of Pantheon Development, in an exclusive interview with Arabian Business. 'Dubai's buyers want lifestyle with a logo. RAK's buyers want first-mover bragging rights.' The global branded residences sector has recorded 410 per cent growth over the past decade, with the UAE leading the charge in the Middle East and North Africa region. This expansion is being driven by several factors including rising international buyer confidence, Dubai's emergence as a luxury lifestyle hub, and developers leveraging brand equity to command premium pricing. Premium pricing power drives investment appeal The financial benefits propelling the branded residences boom is seen to benefit both developers and investors. Properties holding well-recognised brand names consistently command rental premium of 25 to 40 per cent in prime locations such as Marina, Downtown and Palm Jumeirah, while also offering higher capital appreciation and faster resale. 'You're not just paying for property—you're buying into permanence, prestige, and predictability,' Kinariwala explained. 'In a world where brand trust equals value, that premium is not only justified—it's strategic.' The investment case has proven particularly robust, with branded properties offering what Kinariwala describes as 'more predictable, resilient, and future-proof returns' compared to traditional luxury developments. The investment case has proven to be particularly strong, with branded residences offering what Kinariwala describes as 'more predictable, resilient, and future-proof returns' compared to traditional luxury developments. Core return-on-investment (ROI) drivers includes premium pricing power through brand recognition, higher rental yields from lifestyle-focused tenants, faster resale processes with international buyers and stronger asset management protecting long-term value. Abu Dhabi emerges as major growth center with the emirate's luxury market reaching AED 6.3 billion in transactions during the first quarter of 2025. According to a recent report from Metropolitan Capital Real Estate (MCRE), at least 25 branded residences are expected to be announced in Abu Dhabi this year, amounting to a sharp increase from 2024. The secondary luxury market has also recorded a 158 per cent increase in transaction volume year-on-year. According to Ratskevich, property prices in branded projects now average AED 2,500 to AED 4,000 per square metre, based on location, which is significantly lower than comparable properties in Dubai and Ras Al Khaimah, making it attractive for international investors. High-profile branded properties including the Jacob & Co Beachfront Residences, , Elie Saab Waterfront, and Nobu Residences – which achieved a record-breaking penthouse sale of AED 137 million are contributing to the country's growth as a hub for luxury real estate. Demographic shift toward end-users The branded residences market is witnessing a fundamental demographic transformation, evolving from purely investment-driven trophy assets to lifestyle-first purchases by actual residents. 'What started as a trophy asset for global investors is now attracting high-end users who want to live a branded lifestyle, not just own it,' Kinariwala said, highlighting the shift towards primary and secondary home purchases by high-net-worth families from Europe, India, Russia, and GCC countries. In Dubai, particularly, the trend is strong, with buyers increasingly seeking branded residences as primary homes. Meanwhile, Ras Al Khaimah is particularly investment-led, driven by tourism growth and early access to upcoming landmark developments. Abu Dhabi has also seen a shift in investor demographics, with UK, US, UAE nationals and other GCC citizens replacing Russian and CIS investors as primary buyers. Nearly half of all buyers are now end-users rather than investors, new data reveals. Amenities evolution reflects lifestyle demands The amenities and features within branded residences stands out as a leading factor for increased demand, as developers move beyond traditional luxury offerings to create curate, experiential living environments that reflect modern lifestyle demands. Data reveals that the most in-demand amenities include hotel-style concierge and valet services, private wellness and spa facilities, co-working lounges and tech-enabled business hubs, resort-style pools and rooftop lounges, as well as, personalised services including housekeeping and in-residence dining. Geographic expansion beyond traditional hotspots While established areas including Palm Jumeirah, Downtown Dubai and Dubai Marina continue to attract branded developments, the growth is seen expanding to emerging areas such as Jumeirah Bay Island, Jumeirah Village Triangle (JVT) and Al Wasl. Ras Al Khaimah is also seen experiencing significant growth, capitalising on its tourism potential and offering a first-mover advantage for investors seeking exposure to emerging luxury destinations. In Abu Dhabi, key growth areas include Saadiyat Island, Al Reem Island, Mariah Island, Al Hudayriat and Yas Island, among which Saadiyat Island and Al Hudayriat are showing particularly strong momentum. Challenges and market maturation Despite the upward trajectory in the branded real estate sector, developers face significant challenges. Key hurdles include finding appropriate brand partnerships that resonate with local markets, balancing global design standards with local regulation and cultural considerations and managing premium construction and operational costs while maintaining justified pricing. 'In branded real estate, every detail must deliver. Because you're not just selling luxury—you're selling trust, story, and permanence,' Kinariwala explained. The challenge of differentiation has intensified as more developers enter the market, requiring focus on storytelling, identity, and delivering personalised lifestyle experiences rather than simply applying brand names to buildings. Future outlook: Beyond traditional luxury Real estate industry experts anticipate the next wave of branded residences will feature more brand diversification, moving beyond traditional luxury hotel names to include fashion houses, automotive icons, wellness pioneers, and technology brands. 'The next wave of branded residences in the UAE is going to be bolder, more personalised, and deeply experiential,' Kinariwala predicted, highlighting potential focus areas including integrated wellness suites, biophilic design, touchless technology and community ecosystems supporting physical and mental health. The evolution highlights changing buyer psychology, with high-net-worth individuals seeking properties that reflect personal identity and values rather than just affordability or investment potential. 'This isn't a fad—it's a formula that works,' Kinariwala concluded. 'With 410 per cent global growth and Dubai poised to lead the world, branded residences are redefining what 'luxury living' means in the UAE.' Industry experts suggest that the shift toward branded residences signals more than just a temporary market trend, positioning the UAE as a global leader in luxury lifestyle real estate while offering investors to a rapidly maturing asset class with demonstrated premium pricing power and superior return potential. 'Branded residences are reshaping the UAE's luxury real estate map, and we're seeing clear hotspots emerge as demand accelerates. This isn't random growth — it's data-driven, brand-backed expansion where lifestyle, investment appetite, and infrastructure align,' Kinariwala concluded.
