A.SREENIVASA REDDY (ABU DHABI)
Abu Dhabi is rapidly emerging as the Gulf’s next branded-residence powerhouse after Dubai, with the segment recording an exceptional 126% year-on-year increase in transaction volumes in the first nine months of 2025, according to a new report by CBRE Research.
The surge was led by villa sales—driven by the strong market debut of Jacob & Co Beach Living—and mirrored in the apartment segment, where volumes rose 118% year-on-year following the launch of W Residences.
However, despite the sharp increase in activity, total apartment transaction value rose by only 16%, a moderation the report attributes to the unusually high base set in 2024 during the launch of the ultra-luxury NOBU Residences.
CBRE said the premium attached to branded units in Abu Dhabi has become a defining feature of the market. Branded residences now command an average price premium of around 87% compared with standard homes in the same districts. The consultancy notes that the premium is partly explained by association with global luxury brands, but also by scarcity: ultra-luxury supply remains limited across masterplans such as Saadiyat Island, Yas Island and Al Maryah Island.
Hospitality operators dominate both existing inventory and near-term deliveries, a trend expected to continue through 2026. From 2027 onward, however, the pipeline shifts sharply toward lifestyle and designer brands, which will account for 44% of new supply in 2028 and 42% in 2029. Among the key upcoming projects are NOBU Residences, Brabus Island, Jacob & Co Beachfront Living, Bvlgari Resort and Mansions, and Imkan’s SHA Residences Emirates.
The report highlights that branded residences — once a negligible segment—have accelerated dramatically since 2019. Off-plan branded units accounted for less than 1% of market share in 2019 but rose to around 2% in 2025, supported by robust sales, rising prices and confidence-boosting catalysts such as the Disneyland announcement in May 2025, which CBRE says immediately lifted investor sentiment about the capital’s long-term luxury and tourism trajectory.
This momentum has resulted in a sizable future pipeline. CBRE projects that branded homes will represent 18% of total unit deliveries in 2029, marking a major structural shift in Abu Dhabi’s residential landscape.
Investor appetite has firmly moved toward early-stage acquisitions. In 2025, more than 75% of all branded-residence transactions—by both value and volume—were off-plan, reflecting expectations of future price growth and confidence in the capital’s cultural and leisure development programme.
Between 2025 and 2030, Abu Dhabi is expected to deliver more than 2,700 branded units across over 20 projects, largely concentrated in luxury island destinations including Saadiyat, Yas and Al Maryah. The pipeline blends major hospitality names—Four Seasons, Waldorf Astoria and Mondrian—with exclusive non-hospitality brands such as Jacob & Co, Brabus and Bvlgari, a diversification CBRE says will elevate the capital’s global appeal and deepen demand from foreign investors.