Money

One in seven

3 min readBy Ansh Virmani

Roughly one in every seven branded residences in the world is in Dubai. Knight Frank counts more than 80 schemes delivered or under construction, the widest tally runs past 130 projects, and either way no other city is close; Miami and New York follow at a distance. The badge on the door, whether it says Bulgari, Armani or a hotel group you have stayed with, sells at a 30 to 35 percent premium to an unbranded home of the same quality next door.

Branded residence schemes, by city
Dubai is the category.
Dubai80+
Miami2nd
New York3rd
1 in 7of the world’s schemes
30 to 35%price premium over unbranded
Knight Frank Branded Residences report; Miami and New York bars are ranked, not to scale.

What you are paying for

Three things, and only one of them is the logo. First, a management standard: the brand’s operator runs the building, which usually means it is cleaner, better staffed and better maintained ten years later. Second, liquidity: a branded tower has a global buyer pool that searches by name. Third, the story, which is worth exactly what the next buyer thinks it is worth. In 2024, branded homes in prime spots grew about 17 percent in price, ahead of the ordinary luxury stock around them.

The premium, decomposed
Where a 30 percent premium roughly goes.
  • Operations service, staffing, upkeep
  • Liquidity a named buyer pool
  • Story the badge itself
My own split from resale conversations, not a published figure. The first two slices are durable. The last one is fashion.

The economics work for developers first, which is why there are so many. A brand licence costs a few percent of sales revenue and adds thirty to the price, and a named tower sells faster at launch, which cuts financing costs. Buyers get a better-run building; developers get a better margin and a quicker sell-out. That alignment is real, and it is also why the badge appears on projects that would not otherwise deserve the attention.

When the badge does not pay

Service charges. A branded tower can run AED 25 to 40 per square foot against 12 to 18 for a good unbranded one, and that gap is forever. On a gross yield basis the branded unit often loses to its neighbour, which is why most branded buyers are end-users or capital-growth investors, not income investors. The second risk is dilution: with more than a hundred schemes, some badges now sit on ordinary buildings in ordinary places, and the market is learning to tell the difference.

A brand is a promise about the next ten years. Check who is keeping it.

What I do with it

Pay the premium for an operator with a real hotel next door and a track record of running residences, in a location that would be prime without the name. Do not pay it for a logo licensed onto a tower the brand will never visit. And underwrite the service charge before the view.

Sources. Khaleej Times, branded residences 2026 · Knight Frank Wealth Report 2026 summary · Omnia Capital, are branded residences worth the premium

Ansh Virmani
Ansh Virmani

I run The Virmani Group in Dubai and write here about the UAE market, the city, and the work. Every opinion is mine; Claude helps with the drafting. Thinking about property here? Talk to me first.