Dubai's Branded Residences Market Cools On Volume But Pricing Power Stays Strong

(MENAFN- Khaleej Times) Dubai's branded residences sector added 5,184 new units in the first half of 2026, growing total inventory by 8.7 per cent in six months, even as the market entered a more competitive and selective phase, according to a new report by Morgan's International Realty.

The Dubai Branded Residences Report H1 2026 found the emirate now has 64,744 branded residential units across 183 developments as of June 30, 2026, up from 59,560 units across 175 developments at the end of 2025.

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Despite the continued expansion in supply, transaction activity moderated from the exceptionally strong levels seen a year earlier.

Dubai recorded 4,648 branded residence transactions worth Dh22.21 billion during H1 2026, with volumes down 21 per cent and total sales value falling 47 per cent compared with H1 2025.

The sharper drop in value, the report noted, reflects a shift in the composition of deals towards smaller units, lower price points and a greater share of non-prime inventory. Performance was more stable when measured against the second half of 2025, with overall activity and average pricing broadly unchanged.

Dubai and the UAE continue to attract millionaires from around the world, driving demand for branded and luxury properties.

Off-plan dominates activity

Off-plan properties continued to drive the market, accounting for 82 per cent of transaction volume and 78 per cent of sales value during the period. Under-construction residences recorded 3,790 transactions, benefiting from new international investors and construction-linked payment plans that let buyers spread payments over several years.

Of the total 64,744 branded units in the market, 42,826 – about 66 per cent – remain under construction, with the balance of 21,918 units in ready developments.

Activity was heavily concentrated, with the five leading communities accounting for around 59 per cent of all branded residence transactions. Mercedes-Benz Places – Binghatti City alone recorded 1,216 transactions, representing roughly 26 per cent of total branded residence sales and 32 per cent of under-construction volume – a scale the report said had a material effect on the city's headline numbers.

Premium widens beyond global norms

Branded residences commanded an average price of $997 (Dh3,662) per square foot in H1 2026, against $641 (Dh2,354) per square foot for comparable non-branded properties – a 56 per cent premium that sits well above the prevailing global range of roughly 30 to 35 per cent.

Elias Hannoush, founder and managing director of Morgan's International Realty, said the market had moved beyond its emerging asset-class phase.

“It has achieved significant scale, but scale changes the basis of competition. As more projects enter the market, a brand name alone will not be enough. Pricing discipline, development quality, delivery, service and long-term operations will increasingly determine which projects preserve their positioning,” Hannoush said.

He cautioned that the scale of the premium should not automatically be read as a sign of market strength.

“The question is no longer whether branded residences can command higher prices in Dubai, the data clearly show that they can. The more important question is whether those premiums will endure once construction-period payment plans end and projects enter the ready and resale markets. The next phase will be a test of execution,” he added.

Trophy deals remain resilient

At the top end of the market, five transactions of Dh200 million or more were recorded during the period. The largest was a Dh422 million sale at Aman Residences Dubai, followed by a second Aman unit at Dh356 million, Jumeirah Asora Bay Ocean Mansions at Dh350 million, The Alba Residences at Dh226 million, and Bugatti Residences at Dh200 million.

The report said such deals, while not representative of the wider market, pointed to continued demand for scarce, ultra-luxury branded stock.

Downtown Dubai had the highest concentration of branded developments (23), followed by Business Bay (21) and Palm Jumeirah (18). Meydan led on transaction volume with 1,378 deals worth Dh3.03 billion, ahead of Downtown Dubai (405 transactions, Dh3.41 billion) and Dubai Creek Harbour (355 transactions, Dh1.04 billion).

Looking ahead

Since 2020, the number of branded residential developments in Dubai has more than tripled, from 50 to 183, alongside a structural shift towards hotel-managed, service-led living models. Nearly half of current developments (47 per cent) are residential units built with hotel management, according to the report.

Upcoming projects highlighted in the report include Aman Residences Dubai, a waterfront scheme on Dubai Peninsula in Jumeirah 2 developed by H&H Development and designed by Kerry Hill Architects, and Janu Dubai in DIFC, a 150-key hotel and 57-residence scheme designed by Herzog & de Meuron. Both are slated for completion in the fourth quarter of 2029.

The report concluded that with supply expanding and competition intensifying, buyers will increasingly need to assess individual projects on their merits rather than relying on broader market trends or brand affiliation alone.

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