Think developers have had enough of branded residences? Think again. Some developers are so bullish on branded real estate that they’re now developing entire branded cities — with Binghatti choosing Mercedes-Benz for its latest branded real estate play, according to a statement (pdf) out yesterday.

The AED 30 bn project, located in Meydan, comes amid growing criticism of the branded residence segment. Some industry players — like British developer Nick Candy and Arada’s Chief Investment Officer Rosa Piro — question if the brand name alone justifies the premium associated with these types of projects, particularly when it comes without a genuine service offering, AGBI reports.

Some developers are opting out: Azizi Developments said it stopped pursuing branded projects after finding that service charges for residents became disproportionately high, with branding more than doubling annual maintenance costs in some cases, a company spokesperson told AGBI.

Background

Branded residences, where developers license a third-party brand to market and price homes at a premium, have surged across Dubai. Brands range from hotel operators to fashion houses, watchmakers, and car companies — all banking on cachets translating into higher prices.

Why it matters: Momentum is spilling beyond the emirate

Momentum is spilling beyond the emirate: Luxury fashion house Karl Lagerfeld signed a partnership with Aark Developers for a USD 1.4 bn beachfront branded residential project on Al Marjan Island in Ras Al Khaimah, due for completion in 2028. The development will deliver 663 residences alongside hotel-style amenities, Trade Arabia reports.

Our take-

Dubai Land Department data suggests buyers are still engaging with branded projects, though not all brands are rewarded equally. Mercedes-Benz Places by Binghatti sold 33 off-plan units so far this year, generating AED 449.8 mn, with prices reaching around AED 5.6k per sq ft — roughly 44% above the Downtown Dubai off-plan average, according to data picked up by AGBI. In contrast, Burj Binghatti Jacob & Co sold 46 units (worth AED 482 mn) at around AED 2.7k per sq ft, broadly in line with Business Bay averages. The sales volumes are similar, but the pricing power is not.

Yes, but: While branded homes command an average 33% global premium, Savills’ Branded Residences Report 2025 (pdf) says that in established cities such as Dubai, pricing power depends less on the brand itself and more on delivery quality, location, and operational execution.

What it means: Branding still works, but only when backed by operations. Dubai’s branded residences market is not overheating; it’s maturing. Buyers remain willing to pay a premium, but increasingly only when branding comes with tangible services, credible operators, and a clear lifestyle proposition.

Projects that rely on logos alone may still sell in a rising market, but risk underperforming once buyers start scrutinizing service charges, resale values, and day-to-day experience. The next phase of the branded boom will likely be less about who lends their name — and more about who actually runs the building.

Tags: