Branded residences have become one of the most sought-after areas of Dubai real estate, with a report showing that Dubai has the highest concentration of branded residences in Europe and the Middle East, with some off-the-shelf and off-plan branded properties commanding eye-watering prices.

In May, luxury car brand Bugatti revealed that it was working with UAE real estate developer BinGhatti to create Sky Tower for $204 million.

This comes just days after a Jumeirah Marsa Al Arab branded apartment was sold for $114 million, which in itself broke the record for an off-the-shelf apartment set by the Bulgari property on Jumeirah Gulf Island for $33 million.

A Savills report shows that Dubai has the highest concentration of branded residential schemes in Europe, the Middle East and Africa (EMEA), well ahead of London, the second largest market, with the number expected to increase by almost 120% by 2030.

But who is buying these properties? Real estate experts say the average price of these properties is nearly AED 1,000 ($272) per square foot higher than the average price of non-branded properties.

Ziad El Chaar, CEO of Dar Global, the London-listed global arm of Saudi Stock Exchange-listed Dar Al Arkan, says his agency has sold such properties to 40 different countries, with clients who are high net worth individuals seeking exclusivity.

Dar Global's portfolio has a strong focus on Italian luxury brands, forming partnerships with Missoni, Elie Saab, Pagani Automobili, Versace, Dolce&Gabbana and Automobili Lamborghini, with developments in Dubai, Doha and Muscat, as well as Spain and Bosnia.

El Chaar says: "We see that interest depends a lot on the project, the brands involved and its location." He says clients are using these properties as one of two or more residences based on lifestyle choices, not on nationality.

Many of our clients choose to spend half their time in their home country and then continue to work in another city for the rest of the year; it's a lifestyle that has evolved from the constraints of the pandemic, especially the flexibility of working anywhere in the world," he said.

Data from JPMorgan Real Estate's latest Branded Residential Report shows that there are 71 branded residential properties planned for Dubai by the end of 2022, with 13 new ones added during the year.

The average price of a branded residence is Dh3,143 per square foot ($855.82), compared to Dh2,221 per square foot for a non-branded property.

Branded homes on Jumeirah Bay Island were the most expensive at Dhs9,148 per square foot, compared to Dhs3,893 per square foot for non-branded properties.

Relatively speaking, branded properties in Jumeirah Village Circle have been sold at an average price of AED 1,215, the report said.

Nikita Kuznetsov, CEO of Metropolitan Premium Properties, said the properties were popular with Italian investors, particularly those associated with Italian brands such as Cavalli and Bulgari.

He said the branded residential market has gained "tremendous traction" thanks to Dubai's maturing luxury residential market, which he also noted has remained resilient in the face of global uncertainty and change.

Another real estate broker, Charlie Bannan, director of sales at haus & haus, cited data showing that certain markets have seen a surge in the number of people looking to buy property in Dubai.

While Western European buyers increased by 5.79 percent overall from the first quarter of 2022 to the first quarter of 2023, the increase was even greater when it came to individual nationalities.

German buyers are up 100 percent year-on-year, Italians are up 57.14 percent and British buyers are up 28.81 percent, he said.

"Outside of Western Europe, we saw the highest increases in buyers from Ukraine (333.33%), Lebanon (300%), Russia (266.67%) and Australia (233.33%)," he said.