In recent times, the fascination and excitement surrounding branded residences has led to this particular sector of luxury international real estate experiencing rapid growth.
Within this article, we will delve into the advantages of branded properties and potential warning signs to be mindful of, whether you are a buyer or a property developer.
Understanding Branded Residences
First and foremost, we must emphasise that we strongly support brand residences. In fact, we have dedicated an entire platform to promote this sector, however for a property purchaser it is very important to have a full understanding of branded residences, before making a purchase.
What are Branded Residences?
The key characteristics, features and benefits of branded residences are:
- Definition: Prime residential homes associated with luxury hospitality and lifestyle brands
- Key features: World class amenities, 5 Star hotel-like services and professional management
- Benefits: Exclusive elite lifestyle, potential value appreciation, rental income opportunities
- Ownership: Private home ownership combined with brand prestige and quality assurance
- Lifestyle: Top Tier best in class intuitive personal services
Branded residences are essentially formed through a contractual partnership between a residential property developer and either a hotel operator or a non-hotel brand.
Additionally, the brand offers interior design and technical services, and will manage the entire development on completion.
Branded residences offer a luxurious, high-end residential experience that comes with the added value of owning a home associated and managed by a well-known luxury hotel company of luxury brand.
For buyers looking to invest, these residences can offer a hassle-free, professionally managed option.
Some properties especially hotel branded residences, can have the potential for higher rental income compared to non-branded properties, thanks to the additional perks of hotel services and management.
Whether it’s for personal use or investment purposes, branded residences provide buyers with a sense of security in terms of quality finishes, services, and amenities.
Branded Residences A Buyers Perspective
Generally speaking, the benefits of brand residences far outweigh any drawbacks. They can provide significant advantages to property buyers, developers, and brand partners. Some articles even describe them as a “win-win-win” situation.
It is crucial to recognise that branded residences vary in complexity and are not all identical. To navigate this complexity, it is advisable for buyers to engage directly with the developer or a master agent exclusively appointed by the developer.
There are several key considerations that buyers should address before committing to a purchase. Engaging directly with the developer can provide buyers with a better chance of obtaining answers to these critical questions.
These considerations may involve:
- – Whether the project is managed by the hotel or brand
- – The nature of the branded contract (management agreement or franchised license agreement)
- – Duration of the brand agreement
- – Access to exclusive owner facilities
- – Shared facilities between property owners and hotel guests
- – Management of individual properties (by the branding partner or through a HOA/Juristic)
- – Existence of rental pools
- – Implications on property name and status upon expiration of the license agreement
- – Responsibility for maintenance of facilities and communal grounds, particularly in mixed residential and hotel developments
- – Allocation of maintenance costs
- – Oversight of these costs
These are just a few examples of issues that we recommend clarifying during your due diligence process, as they may differ depending on the region.
While we do not discourage the use of property agents, engaging directly with the developer could potentially offer benefits in gaining a comprehensive understanding of the project.
Branded Residences. A Developer’s Perspective
Earlier in this analysis, we previously mentioned that branded residences pose a challenge for property purchasers and developers alike. We will delve deeper into the essential considerations for developers in a future more detailed article.
However, it is strongly advised that developers seek unbiased guidance from reputable branded residence consultancies.
Developing a Branded Residence Take on Expert Advice
Developing a branded residential project requires careful planning, because success, quick sales, and high ROI are not guaranteed solely based on the branding.
Numerous factors must be taken into consideration, working in collaboration with an independent company is crucial.
An experienced branded residences specialist, should be able to provide guidance on various aspects of development planning, such as Market & Feasibility Studies, Brand/Operator Selection, Due Diligence, Marketing Advice, Owner Representation, and Contract Negotiation.
There are notable experts in this field, including Riyan Itani, formerly of Savills and now director and founder of Global Branded Residences. Riyan and his team at GBR have worked on numerous projects and boast an impressive portfolio of clients.
Chris Graham from Graham Associates is also extremely qualified and respected within this sector.
Knight Frank and Savills have specialists and international departments dedicated exclusively to the sector.
While there are other competent companies and individuals in the industry, the aforementioned experts come highly recommended.
Summary
In conclusion, branded residences are an increasingly exciting addition to the luxury international real estate sector, offering potentially great rewards for all parties involved, when thorough due diligence is conducted, by buyers and diligent planning and execution are carried out by developers and consultants.
We hope this short article has given you a better understanding of branded residences
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- Understanding Branded Residences
- Insight
- Staff Writer
BRESI stands as the world’s premier and first of its kind online marketplace exclusively dedicated to the marketing, selling, and showcasing luxury branded residences for sale across the globe.
BRESI provides an elite property portal where property developers, international hotel groups and exclusive real estate agencies can promote their portfolio of luxury 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.
Our platform showcases an unparalleled collection of hotel-branded and designer-branded properties that define contemporary luxury international real estate.
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.
