Branded residences have become the flavour of the year in the UAE and the wider Middle East. Developers have embraced the idea that attaching a brand – any brand – can boost both price tags and investor appeal.
In a region known for its swathes of luxury real estate, the arrival of names like Baccarat, Mandarin Oriental, Nikki Beach, and W shows that the trend has taken firm root.
Globally, the branded residences market is heating up. According to property firm Savills, there are 740 completed projects and 790 more expected by 2031.
Dubai alone accounts for nearly 20 percent of the global pipeline, with close to 140 branded developments on its books. Unsurprisingly, hospitality brands dominate, claiming 80 percent of the market, with big names like Ritz-Carlton and Four Seasons leading the way.
The allure is thus: branded residences offer investors long-term value, a sense of prestige, and diversified real estate exposure. For example, in markets like Miami, US, even non-hospitality names from fashion and automotive – think Armani and Aston Martin –have joined the branded residence sector, tapping into loyal, ultra-wealthy followings.
Now, food and beverage (F&B) brands are, too, vying for a slice of the branded real estate pie. They bring lifestyle appeal, loyal clientele, and unique design philosophies. But do they command the same price premiums as top hotel brands? And more importantly – do they deliver long-term value?
Dubai’s branded residence market has grown exponentially – from just 21 projects in 2015 to 132 in 2024, according to Cavendish Maxwell’s Property Monitor. Of the 81 brands in the sector, 23 come from outside traditional hospitality, including fashion, jewellery, automotive – and increasingly, F&B.
American hospitality and F&B brand Nikki Beach is a case in point. Its debut project in Dubai, launched in December 2023 with property developer Meraas, saw three-bedroom units initially priced around AED2,100 per sq ft – below the local average of AED2,700. But by 2025, resale prices had reached AED 5,649 per sq ft, a 15 percent premium over comparable properties.
The northern UAE emirate of Ras Al Khaimah (RAK) is fast becoming the next hotbed for F&B-led real estate, buoyed by the arrival of Wynn and a cluster of new brands. Nikki Beach is set to launch off-plan residences in RAK starting at AED2.3 million, with forecasted returns of up to 30 percent by 2028.
Then there’s Nobu, which has swapped sushi for square metres. Its first foray into residences began with the Nobu Hotel Los Cabos located in Cabo San Lucas,Mexico. The brand now has 11 projects in the works – five of them in the Middle East. In Abu Dhabi, prices start at AED 8 million for units averaging 1,300 sq ft, or roughly AED6,153 per sq ft – well above the Mamsha Al Saadiyat average of AED4,377.
Cipriani is also plating up a lifestyle play through its Mr. C Residence brand. In Miami, prices hover around $8,575 per sq ft – nearly 10 times the local average. In Dubai, its debut will offer units starting at AED 3,640 per sq ft – above Downtown Dubai’s average.
Do F&B brands deliver the same premium?
Nevertheless, not all branded residences are created equal. Top-tier hospitality brands like Bulgari or Raffles command significant premiums, often justified by location, design, exclusivity, and above all – service. For instance, the Bulgari Residences in Jumeirah, delivered in 2018, have seen prices jump nearly 300 percent in four years, reaching over AED13,000 per sq ft.
But F&B brands face unique challenges in the branded residence space. While they may excel in dining experiences and brand cachet, they typically lack the operational infrastructure of hotel chains – such as housekeeping, concierge services, or loyalty programmes. Buyers today are increasingly savvy – they ranking brands not just by name but by the tangible lifestyle and service benefits they deliver.
In some cases, brand ownership by local developers helps smooth operations and ensure consistency. Yet even then, the long-term sustainability of the premium depends on maintaining service standards and keeping the brand experience intact.
F&B brands are entering real estate not just to ride a trend but to expand their ecosystems. A branded residence attached to a flagship hotel becomes an anchor, securing long-term revenue through service charges and management fees. For brands, that’s a steady cash flow and an avenue to cement customer loyalty.
This convergence of lifestyle, hospitality, and real estate also taps into the emotional value of ownership. For buyers, it’s not just about square footage – it’s about the story, the experience, and the exclusivity that comes with it.
But only time will tell whether F&B branded residence concepts can match – or exceed – the value offered by traditional hospitality brands.
In recent decades, we’ve seen hotel chains struggle to run successful F&B outlets. Now, the tables have turned. If buyers are willing to entrust their lifestyle – and their investments – to F&B brands, it could signal a shift in how we define luxury hospitality altogether.
Giuliano GaspariniHOSPITALITY ASSET MANAGERS ASSOCIATION MEAHospitality Asset Managers Association (HAMA) MEA
