2024 has become the year of branded residences growth in our opinion. The industry has continually grown since around 2015, but this year just seems to be the real “break out year“
We are measuring this, not only by the amount of projects that have been launched globally, but also in how common the discussions have become around branded residences, notably within the real estate sector but also within the wider media landscape.
The launch of Porsche Design Tower Bangkok is a compelling example, the project launch earned world-wide media attention, and was probably one of the most written about new projects globally.
The Porsche Design Tower Bangkok marks the first building of its kind in Asia and the third globally, following prestigious Porsche Design real estate developments in Miami, USA, and Stuttgart, Germany.
This project features 22 exclusive duplex and quadplex ‘Sky Villas’ ranging from 525 to 1,135 square meters, designed to set a new benchmark for luxury real estate in Bangkok, with an average price of USD 15 million and up to USD 40 million.
Take a look also at #brandedresidences on platforms such as LinkedIn and Instagram and you will see that posts have increased tenfold at a minimum.
The Future Hospitality Summit where the world’s most influential hospitality investment decision-makers connect, exchange knowledge and explore new partnerships, held for the very first time, a full day dedicated to the sector with a “Branded Residences Forum”
We are witnessing extreme growth of the branded real estate sector, and real estate purchasers are also understanding that branded residences are the “hot must have” when it comes to living in luxury.
It is no longer just us in the industry shouting from the rooftops how great branded residences are, they are far more mainstream now-days.
Slight Concerns
This popularity whilst amazing to see, does come with some slight drawbacks (there is always good with bad) which we have covered in previous articles including our 10 branded residence warning signs to look our for article.
Very much like the early days of the internet where we had a glut of new “professional web designers” we are witnessing similar with an all new breed of “branded residences specialists”
There are also projects that are being marketed as branded residences when in reality they are just converted condominium projects rebadged with a hotel franchise agreement by developers who think it will lead to faster sales.
Real estate buyers must tread very carefully when considering the purchase of a branded residence.
Branded real estate developments are very complex, so a full understanding of the different types of projects is very important, our overview what are branded residences will point you in the right direction.
Branded Residences The Future is Bright
However, let us not dwell on the negatives because the positives far outweigh the potential for downside.
We are witnessing strong branded residences growth globally, just last month (October 2024) there were more than 25 new world class projects launched in cities such as Dubai, Miami, Seoul, Toronto, Cancun, Colorado, Houston and the list goes on.
September was a similar number and even during the typically slower “summer season” many new projects were announced.
It seems like this year, not a week has gone by without a new branded residential development launch or project announcement.
Our research shows that this year alone, we have had announcements of approximately 220 new projects, which is likely outpacing the branded residences growth estimates forecasted.
In addition to this explosion of new developments, we are also witnessing a huge amount of new brands entering this exciting real estate sector.
Branded Residences Growth: Hotels, Designers & Car Brands, now Yacht Makers, Chefs and even Golfers and Tennis Stars
The growth of branded residences over the past 10-15 years stands as one of real estate’s most compelling success stories. There are more than 185 brands (and counting) now actively competing in the branded real estate sector according to the recently released report Branded Residences: A Compendium.
What began as a relatively low key concept, has transformed into an essential factor for many high-end residential projects, with developers and affluent buyers alike viewing the branded element as a crucial differentiator.
How times have changed since just the early 2000’s.
Today’s landscape, with more than 185 brands actively participating in residential real estate, stands in stark contrast to my early experiences when I began working in the sector in 2010.
Back then, securing a brand licensing agreement for a residential building was like trying to find a needle in a haystack. While established luxury hotel brands like Ritz-Carlton, St. Regis, and Four Seasons were already making their mark, the options beyond these industry pioneers was severely limited, especially in Asia.
It’s amazing to think that in 2010 I was co-writing a license agreement with the legal team of a hotel group for a project that I was representing, and we also didn’t not pay a sales royalty fee, to where we stand today with almost every hotel brand in the world making residential a priority for their growth targets”
Jason Payne CEO & Founder BRESI
The reluctance of hotel operators to venture into co branded residential projects was particularly frustrating for developers who were planning to develop hotels with a residential component.
Business Development Managers would often refuse to engage with developments that combined multiple residential buildings with an onsite hotel.
The industry’s evolution from a cautious limited market to today’s dynamic and diverse landscape reflects a huge shift in how brands view residential real estate opportunities.
As we mentioned earlier, the sector now has over 185 brands involved in some way with branded real estate.
The report Branded Residences: A Compendium was compiled by branded residences and marketing specialist Chris Graham who explains why he compiled this industry report.
“The rapid growth in global branded residences is well documented, not only in terms of volume and location but also the quantity and range of brands. Each recognises that the lifestyle associated with its brand can extend (relatively) seamlessly – and profitably – into living spaces.
As someone who has extensively researched and monitored the market over many years, I regularly find that even industry experts struggle to keep on top of brands active in the sector. So last year I started to compile this Brand Compendium.
The range of brands spans multiple sectors, from single site operators to major global hospitality brands, from F&B to fashion, automotive to publishing – even cartoon characters and a celebrity hairdresser. And, increasingly, upscale and midscale brands. Where possible, I have presented each brand using its own words to accurately portray the desired market positioning.
With so many brands to choose from, how do developers decide which is the best fit for their project? Choosing the right brand is vital; it defines how a development is positioned, presented, populated, and publicly perceived. It is a highly complex process and there is no ‘cookie cutter’ approach. As such, working with experienced professionals is universally recommended.
This is proven to save considerable time, money, and frustration, and – crucially – safeguard your project for all parties into the future”
Chris Graham – Graham Associates
Being Branded Not always the Golden Ticket to a Successful Project. A Clear Direction is Needed
We should point out that by simply adding a brand to a project will not guarantee success for the developer.
There is a huge amount of work required to source and agree the right fit for a branding partner. As Riyan Itani (Founder) of branded residences consultancy Global Branded Residences expertly explains:
“I often liken the process of brand selection and negotiation to a marriage; like minds must come together in a mutually beneficial engagement based on passion, enthusiasm, and a will to create something amazing.Unfortunately, while you may know what you want, your preferred partner may have very different requirements and, as a result, the courtship can be very frustrating and often disheartening“
Riyan Itani Global Branded Residences
Location, Scale of the project, Project Value, Type of Project (Standalone or Co-located) should all be carefully considered by a developer and the brands.
These are just a handful of ‘dealbreaker’ issues that must be navigated carefully when selecting and engaging with a brand. And even then, once you have attracted a brand, there is a raft of other potential complications that arise during the negotiation of the commercial and legal terms of the engagement. Indeed, there are a multitude of operational, legal, commercial and market-driven factors that have to be aligned to get a deal across the line.
Often it can feel like threading a very narrow needle, but when the stars align and the profile of the project and the interests of the developer, the brand, and
the target market of purchasers come together, the results can be spectacular.Consequently, having an experienced advisor to guide you through the process and help to navigate to a successful conclusion is essential.
Are the Projects Selling
You may ask “it’s all well and good having all these brands and new projects, but are they actually selling?”
Well the answer is a resounding YES!!
As regular, as the announcements are of new brands and projects, the announcements of projects selling out, are just as frequent.
Take Sol Fairmont Residences in Dubai launched in July announced and within 3 months Phase 1 had sold out.
The Ritz-Carlton Residences Diriyah 106 luxury residences sold out again almost immediately and such is the interest that the developer has launched an additional 59 luxury residences available on an invitation only basis.
Four Seasons announced that their branded residences sales were soaring, with H1 2024 sales reaching $1.2 billion. The success stories are similar across the world.
It is proof that if developers work with the right branding partner, consultant with branded residence specialists (of the likes that have been cited in this article) and just as importantly follow that advice, they will indeed have a projects that will sell out fast and generate higher returns than a non branded counterpart.
The train is not slowing down, in-fact it continues to gain pace.
Thanks for Reading!!
BRESI stands as the world’s premier and first-of-its-kind digital platform exclusively dedicated to the marketing, selling, and showcasing of prestigious branded properties for sale across the globe.
As the definitive marketplace for branded residences, BRESI provides an elite platform where property developers, international hotel groups and exclusive real estate agencies can promote their portfolio of luxury branded residences. From opulent penthouses and designer villas to exclusive condos and bespoke branded mansions including both hotel residences and standalone branded residences.
The companies mission is to highlight the world’s best branded homes available for sale, offering real estate buyers unprecedented access to search for the finest branded properties worldwide.
Through comprehensive market intelligence, branded residences press releases, expert insights, and branded residences news our goal is to become the go to platform for everything branded.
BRESI delivers authoritative coverage of this ever growing luxury real estate sector. From Four Seasons residences to Ritz-Carlton branded homes, hotel-integrated residences to standalone branded properties designed and associated with the best names in hospitality and luxury.
Our platform showcases an unparalleled collection of hotel-branded and designer-branded properties that define contemporary luxury international real estate.
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- Staff Writer
- Insight
- Branded Residences Growth
- The Branded Residences Train Shows No Signs of Slowing Down
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