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Arabian Business
2 days ago
- 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.
Zawya
2 days ago
- Business
- Zawya
Abu Dhabi's property market records $1.63bln sales in 4 months
UAE: Abu Dhabi's property market witnessed a 5% increase in luxury transactions valued at AED 7 million and above, reaching AED 6.30 billion in the first four months of 2025, according to Metropolitan Capital Real Estate (MCRE). The significant performance was backed by rising demand from high-net-worth individuals (HNWIs), international investors, and long-term residents. Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, commented: '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 Abu Dhabi instead of renting, reflecting the growing confidence in the city's real estate market,' Ratskevich added. As for the branded residences, developers launched new lifestyle-centric communities across Saadiyat Island, Al Reem, and Mariah Island. Meanwhile, at least 25 branded residences are expected to be announced in 2025. The luxury market recorded an annual leap of 158%, hitting nearly AED 3 billion in resale activity until April of 2025, with super-luxury properties accounting for over AED 2.60 billion, or 60% of the total secondary market volume.
Arabian Business
3 days ago
- Business
- Arabian Business
Abu Dhabi real estate: Luxury property sales hit $1.7bn in first four months of 2025
Abu Dhabi's luxury property market has recorded AED 6.3 billion in sales during the first four months of 2025, with branded residence launches increasing fourfold compared to the previous year. The market has seen a 5 per cent increase in luxury transactions valued at AED 7 million and above, driven by demand from high-net-worth individuals, international investors and long-term residents, according to Metropolitan Capital Real Estate (MCRE). More than half of these transactions were in the AED 10 million and above segment, reflecting confidence in Abu Dhabi's premium real estate sector. Abu Dhabi luxury market soars Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, said: 'Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments. 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 Abu Dhabi instead of renting, reflecting the growing confidence in the city's real estate market.' The rise of branded residences has been one of the strongest growth engines in 2025, with developers launching new lifestyle-centric communities across Saadiyat Island, Al Reem and Mariah Island. At least 25 branded residences are expected to be announced in 2025, up from just a handful in 2024. , the highest residential transaction in Abu Dhabi to date. The secondary luxury market has also performed well in 2025, with a 158 per cent increase in transaction volume year-on-year. The secondary luxury market saw nearly AED 3 billion in resale activity until April of this year, with super-luxury properties (AED 10mn+) accounting for over AED 2.6 billion, or 60 per cent of the total secondary market volume. In just four months, secondary super-luxury transactions have already reached 22 per cent of 2024's full-year total. MCRE has registered an 11.5 per cent share of the market for properties priced at AED 7 million and above. The company facilitated over AED 700 million in transactions in this category, including AED 530 million in the ultra-luxury segment (AED 10mn+) alone, capturing 11 per cent of that market. Property prices in branded projects now average AED 2,500 to AED 4,000 per sq. m., depending on location, which is lower than comparable properties in Dubai and Ras Al Khaimah, according to Ratskevich. The Abu Dhabi market witnessed a shift in investor demographics in 2024, according to MCRE. While Russian and CIS investors remained prominent at the beginning of the year, their interest waned in Q2, paving the way for a surge in demand from UK, US, UAE nationals and citizens from other GCC countries. Almost half of the buyers are end users with investors looking to diversify their portfolio. Key locations shaping Abu Dhabi's high-end market include Saadiyat Island, Al Hidayriyyat, which has already surpassed 20 per cent of its full-year sales from last year, Yas Island and Reem Island.
Zawya
3 days ago
- Business
- Zawya
Abu Dhabi's luxury property market soars in 2025 as branded residences quadruple and high-end sales hit AED 6.3bln
Abu Dhabi: Abu Dhabi's luxury and branded residences segment is experiencing record-breaking growth in 2025, with branded residence launches increasing fourfold compared to the previous year, according to Metropolitan Capital Real Estate (MCRE), a leading full-service real estate agency based in the Capital. Driven by rising demand from high-net-worth individuals (HNWIs), international investors and long-term residents, the market has seen a 5% increase in luxury transactions valued at AED 7 million and above, reaching AED 6.3 billion in just the first four months of the year. Over half of these deals were in the AED 10 million and above segment, reflecting growing confidence in Abu Dhabi's premium real estate segment. '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 Abu Dhabi instead of renting, reflecting the growing confidence in the city's real estate market.' The rise of branded residences has been one of the strongest growth engines in 2025, with developers actively launching new lifestyle-centric communities across Saadiyat Island, Al Reem and Mariah Island. With at least 25 branded residences expected to be announced in 2025 – up from just a handful in 2024 – Abu Dhabi is undergoing a transformation. Branded projects such as Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, Mandarin Oriental Residences and Nobu Residences, which achieved a record-breaking penthouse sale of AED 137 million, the highest residential transaction in Abu Dhabi to date, are raising the bar for luxury real estate in the region. In addition to branded residences the secondary luxury market has also had a standout performance in 2025, with a 158% increase in transaction volume year-on-year. The secondary luxury market saw nearly AED 3.0 billion in resale activity until April of this year, with super-luxury properties (AED 10M+) accounting for over AED 2.6 billion, or 60% of the total secondary market volume. In just four months, secondary super-luxury transactions have already reached 22% of 2024's full-year total, a sign of increasing investor confidence in ready-to-move-in, high-end inventory. MCRE has cemented its leadership in Abu Dhabi's luxury segment, registering an 11.5% share of the market for properties priced at AED 7 million and above. The company facilitated over AED 700 million in transactions in this category, including AED 530 million in the ultra-luxury segment (AED 10M+) alone, capturing 11% of that market. According to Mr. Ratskevich, property prices in branded projects now average AED 2,500 to AED 4,000 per sq. m., depending on location, which is significantly lower than comparable properties in Dubai and Ras Al Khaimah making it very attractive for investors from around the world. The Abu Dhabi market witnessed a significant shift in investor demographics in 2024, according to MCRE. While Russian and CIS investors remained prominent at the beginning of the year, their interest waned in Q2, paving the way for a surge in demand from UK, US, UAE nationals and citizens from other GCC countries. Almost half of the buyers are end users with investors looking to diversify their portfolio to take advantage of the bargain prices. Key locations continue to shape Abu Dhabi's high-end market including Saadiyat Island, Al Hidayriyyat, a rapidly maturing hotspot that has already surpassed 20% of its full-year sales from last year, Yas Island and Reem Island. To meet the rising demand for premium real estate, MCRE has announced the opening of a dedicated luxury real estate office – Metropolitan Capital Elite – located in Saadiyat Island that will cater exclusively to the luxury segment offering curated services for HNWIs, end-users and institutional investors focused on high-end and branded assets.
