Luxury Residences Expand in Middle East

- The Residences at Sheraton Al Marjan Island Resort, located in Ras Al Khaimah, is one of only five Sheraton-branded residences in the world. This development is part of a broader trend that has seen the branded residences sector in the Middle East and North Africa grow by 187% over the past five years. - Owners at the Sheraton residences gain immediate access to Marriott International’s ONVIA owner recognition platform, which includes preferred rates, priority upgrades across more than 7,000 hotels, and curated experiences such as those on The Ritz-Carlton Yacht Collection. - The Atmosphere "Arka Enclave" project on Dubai Islands focuses heavily on wellness and lifestyle amenities, including a full-service spa, rooftop pools, Technogym-equipped fitness centers, and an outdoor cinema. A dedicated "adventure concierge" can also arrange activities like scuba diving, desert safaris, and yacht bookings for residents. - This expansion aligns with a "quiet luxury" trend in Dubai, where affluent buyers are increasingly seeking personal sanctuaries over ostentatious displays. This is reflected in designs emphasizing natural materials, seamless indoor-outdoor living, and a focus on privacy and well-being. - The branded residence market in Dubai saw transaction values increase by 38% to $21.36 billion in 2025, with off-plan transactions accounting for about 82% of the activity. On average, branded residences in Dubai command a 64% price premium over comparable non-branded properties. - Ras Al Khaimah, where the Sheraton project is located, is a rapidly growing market, with real estate transactions hitting AED 11.95 billion in the first nine months of 2024, a more than 70% increase from 2020. The emirate is positioning itself as a hub for affordable luxury, with rental yields for apartments averaging 7.8% in 2024, higher than in Dubai (6.5%). - The growth in luxury residences is part of a larger shift in high-end spending from personal goods to experiences. The global luxury hospitality market reached $154.32 billion in 2024, with the Middle East seeing a 22% increase in tourist numbers since 2019, fueling demand for such integrated residential and resort-style living. - A key driver for this market is hyper-personalization, with 71% of consumers expecting it. In hospitality, this extends beyond basic preferences to integrated wellness journeys, using guest data to tailor everything from sleep quality to dining, which can increase revenue by 40% for companies that excel in this area.