The key factors influencing branded residences pricing are:
- Brand association and prestige
- Superior amenities and services
- Premium design and quality standards
- Prime location value
- Potential for better value retention
Understanding the Branded Residences Price Premium
Research shows that branded residences typically come with an average price tag that is, 20% to 35% higher than comparable non-branded luxury properties. This premium, is often referred to as the “brand premium”
The Brand Premium
Research conducted by Knight Frank, a global real estate consultancy, provides insights into the extent of the brand premium across different markets:
Emerging markets: Up to 45% premium
Mature markets (e.g., London, New York): 25% to 35% premium
Ultra-luxury segments: Premiums of up to 60% in certain locations
In some markets, these premiums have been as high as 100%
Justifying Higher Costs for Branded Residences
While the price premium for branded residences may seem high, many buyers find justification in the unique benefits and experiences these properties offer.
Many professionals in the industry classify branded residences as best in class, due the services offerings.
World-Class Amenities
Branded residences typically provide access to amenities that surpass those found in traditional luxury developments. For instance:
The Residences at Mandarin Oriental, Bangkok offer homeowners access to a private Residents Clubhouse, private chefs, a fleet of luxury cars, and priority reservations at the hotel’s Michelin-starred restaurants.
Owners at the Aston Martin Residences in Miami enjoy a super yacht marina, virtual golf facilities, and an art gallery curated by Aston Martin.
Hotel-Style Services & Rewards
Many branded residences associated with hotel chains provide hotel-style services to residents, adding significant value to daily living:
The Four Seasons Private Residences in Los Angeles offer 24/7 concierge services, in-residence dining, and housekeeping. Rooftop gardens, in-house PRIMA cinema, pool terrace with cabañas, and a 3,250 square foot indoor/outdoor fitness center with masseuse room, private yoga, sauna and steam rooms.
Residents of the Ritz-Carlton Residences in Sunny Isles Beach, have access to a dedicated residential concierge team and personalised beach services. On site restaurants, bars, rooftop pool and yacht charters are all available to owners.
The Residences at Peninsula London offer personalised concierge services, a chauffeured Rolls Royce car fleet and upscale, in-house dining and shopping, all with a backdrop that includes Buckingham Palace.
Some projects offer, bodyguards, pet grooming and personal shoppers, the list of amenities is endless.
Branded Residences are big business for hotel brands, with almost every major player in the industry now being involved. Residential is playing a very important role in growing a hotel companies revenue model.
Hotels brands commonly offer homeowners membership in their hotel rewards programmes, owners of Marriott Residences for example are enrolled in ONVIA which provides world-class amenities and services, a dedicated team that ensures a deep understanding of your needs, and VIP benefits through ONVIA, a fully integrated and comprehensive owner recognition platform,
As a Marriott Residences owner, you’ll enjoy Elite Membership in The Marriott Bonvoy™ loyalty program which provides access to exclusive events and unparalleled experiences.
Design and Quality
Branded residences often feature designs and finishes that align with the brand’s reputation for luxury and quality. In-house teams from the brands, are normally involved from the outset to ensure that their brand standards are met.
Best in class architects and designers are normally expected to be used, and for non hospitality branded residences, the brands themselves normally have a lot of input in the design of the projects
The Armani/Casa residences in Miami and New York boast interiors personally designed by Giorgio Armani, featuring custom-designed furnishings and fixtures.
The Porsche Design Tower in Sunny Isles Beach incorporates “Dezervator” car elevators, allowing residents to park their vehicles next to their living rooms, even on the highest floors.
The ‘Dezervator’ is a one-of-a-kind ultra-luxury car elevator which provides residents with direct access to their apartments inside their cars
Fashion designers such as Elie Saab and Karl Lagerfeld normally design all of the interior specifications for the homes where their name is being used.
Property Developers also have to follow strict brand standards, with most hotel brands insisting that branded residence projects on completion, meet the same standards as one of their hotels.
Location Premium
Branded residences are often situated in prime locations, which contributes to their higher pricing. The combination of a prestigious location and a luxury brand creates a “double premium” effect in some projects in major cities where land is scarce.
Variations in Branded Residences Pricing Premiums
The extent of the price premium for branded residences can vary significantly across different global markets.
Emerging Markets vs Established Markets
A study by Savills highlighted regional differences in branded residence premiums:
North America: Average premium of 28-31%
Asia-Pacific: Average premium of 25-37%
Europe, Middle East, and Africa: Average premium of 25-35%
The Role of Brand Strength in Branded Residence Pricing
Not all branded residences command the same premium. The strength and reputation of the associated brand play a crucial role in determining the price uplift.
Luxury Hotel Brands
Residences associated with renowned luxury hotel chains often command the highest premiums:
- Four Seasons Residences
- Ritz-Carlton Residences
- Mandarin Oriental Residences
- Rosewood Residences
- Aman Residences
These brands leverage their reputation for exceptional service and global recognition to justify higher price points. Almost every luxury hotel brand now operates in the branded residential sector.
Fashion and Lifestyle Brands
Residences branded by luxury fashion houses or lifestyle brands can also command significant premiums. These properties often focus on design aesthetics and lifestyle experiences aligned with the brand’s identity.
- Armani/Casa
- Bulgari Residences
- FENDI Private Residences
Automotive Brands
High-end automotive brands have also entered the branded residence market, offering unique value propositions, for homebuyers who are “fans of the brand” and are looking for something which has been designed completely different to traditional real estate. These buildings normally have wild and unique interiors and the design lines of the cars are sometimes used for the exterior design and look.
- Porsche Design
- Aston Martin
- Bentley
- Lamborghini
- Mercedes Benz
These properties often incorporate automotive themes and technologies into their design and amenities, justifying their premium pricing.
The Impact of Ongoing Costs on Branded Residences Pricing
When considering the pricing of branded residences, it’s essential to factor in the ongoing costs associated with ownership. These can contribute to the overall price premium: These fees can differ greatly from each project, but expect to pay
- Higher maintenance fees due to premium amenities and services
- Branded residence management fees
- “Pay to use” additional Hotel services
Example: The Residences at the West Hollywood EDITION
Owners at The Residences at the West Hollywood EDITION pay monthly HOA fees ranging from $4,000 to $16,000, depending on the unit size. These fees cover access to hotel amenities, concierge services, and maintenance of common areas.
Comparison: Branded vs. Non-Branded Luxury Property Pricing
Conclusion: Balancing Premium and Value in Branded Residence Pricing
While branded residences can come with a significant price premium, the unique combination of luxury living, world-class amenities, and brand prestige continues to attract high-net-worth buyers worldwide.
For potential buyers, the decision to invest in a branded residence should involve careful consideration of both the initial price premium and the long-term value proposition.
While the higher costs could be substantial, the unique lifestyle and the prestige of owning a home marked with a world class luxury brand make branded residences an attractive option for those seeking best in class luxury residential homes.
FAQ: Branded Residence Pricing
Q: Why are branded residences more expensive than non-branded luxury properties?
A: Branded residences command higher prices due to their association with luxury brands, premium amenities, superior services, and potential for better value retention.
Q: How much more expensive are branded residences compared to similar non-branded properties?
A: On average, branded residences are priced 20% to 35% higher than comparable non-branded luxury properties, with premiums reaching up to 45% in some markets.
Q: Do all branded residences have the same price premium?
A: No, the price premium varies depending on factors such as brand strength, location, amenities offered, and local market conditions.
Q: Are branded residences a good investment?
A: While they come at a premium, branded residences often offer better value retention and potential for appreciation, making them attractive to investors seeking long-term value in the luxury real estate market. However normally location, competition and scarcity should be taken into consideration.
Q: How do ongoing costs compare between branded and non-branded luxury properties?
A: Branded residences typically have higher ongoing costs due to management costs, premium services and amenities, which should be factored into the overall investment consideration.
Thanks for reading. For more branded residences news visit our news and insights page
.
Cover Image Porsche Design Bangkok
BRESI is the world’s first platform dedicated to the selling and marketing of branded residences. BRESI is an exclusive platform for owners, developers, and hotel groups to promote luxury branded residences
Our goal is to highlight the best branded real estate for sale around the globe, and to provide insight and news from the sector
DISCLAIMER: All information in this article is for information purposes only. For more detailed information please visit the links cited in the article. BRESI claims no copyright to any of the images.
