According to a report released by Knight Frank, 69% of global high-net-worth individuals have expressed strong interest in owning branded residences in Dubai, marking a significant increase from 59% in 2023, which is astonishing.

Titled "Destination Dubai 2024," the annual report is released by the global real estate consultancy firm Knight Frank. The report indicates that non-GCC (Gulf Cooperation Council) high-net-worth individuals exhibit a higher propensity to purchase branded residences in Dubai, reaching 83%, while among expatriate high-net-worth individuals from the GCC, this figure stands at 46%.

The report, based on a survey of 317 high-net-worth individuals, including 217 global high-net-worth individuals and 100 expatriate high-net-worth individuals from the GCC, aims to understand their attitudes and desires regarding real estate investment in Dubai. These high-net-worth individuals collectively possess a net worth of $5.4 billion and own 1149 properties worldwide.

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Ras Al Khaimah, Partner at Knight Frank MENA, stated, "Branded residences offer a luxurious lifestyle and have become synonymous with Dubai." Luxury branded residence operators such as Ritz-Carlton, Bulgari, Dorchester Hotel Group, and Four Seasons Hotels are capitalizing on Dubai's demand for upscale residences. The report highlights the deep demand for branded residences, reflected in the record price of AED 16,283 per square foot for a six-bedroom ocean villa at Bulgari in the summer of 2022.

In addition to high-net-worth individuals in Dubai, expatriate high-net-worth individuals from the GCC also show strong interest in branded residences. The report indicates that 36% of high-net-worth individuals believe that any branded residence purchased in Dubai will appreciate by 5% to 10% in the first year of acquisition. This figure rises to 50% among individuals with a net worth of $10 million to $15 million.

However, the report also points out that such premium pricing requires developers to demonstrate its rationale, especially in a fiercely competitive environment. For individuals with a net worth exceeding $15 million, "service provision and physical amenities" are the most critical factors, followed by "brand image."

Knight Frank's analysis suggests that most expatriate high-net-worth individuals residing in the GCC seem inclined to spend relatively lower amounts on branded residential real estate in Dubai. The report also notes that 23% of individuals with assets exceeding $20 million are willing to spend over $5,000 per square foot.