Branded real estate (branded residences) and traditional luxury real estate, both offer wonderful residential experiences, but come with many differences in the service standards and facilities offered to homeowners. Understanding these differences is crucial for potential buyers and investors. Here’s an overview of the differences branded real estate vs luxury real estate
- Services. Branded residences often offer hotel-like services such as 24/7 concierge, housekeeping, and room service. Traditional real estate typically has more basic service standards, and are project dependant.
- Brand Association. Branded residences come with the association, prestige and quality assurance of a well known brand. Traditional apartments and homes are standalone and based on their own individual merits.
- Amenities. Both offer high-end amenities, but branded residences may provide more access to unique facilities like spas, gourmet restaurants or exclusive clubs, due to their common association with world class hotels.
- Costs. Branded residences often have higher purchase prices and fees due to the associated brand premium and ongoing maintenance. Luxury traditional apartments whilst having ongoing fees, may be more cost-effective in the long run.
- Customisation. Traditional real estate usually offers more freedom for personalisation, due to most homes being sold as unfurnished. Branded residences often come with preset designs and furnishings.
Branded Real Estate vs Luxury Real Estate
Before we begin, the key points from above and the information below is a general overview of the differences between the 2 real estate sectors. Every project is different, we have seen very poor quality branded residences that do not offer any of the exclusive benefits expected of ownership, and in reality these projects are just named after, and nothing more.
And we have seen world class non branded luxury apartments that offer everything that is expected from a branded home, and the only part missing is the brand association. So let’s take a look at branded homes vs luxury real estate, the differences, the benefits and the negatives.
Huge Growth in Branded Residence Developments
In recent years, the prime real estate market has seen a surge in branded residences worldwide. Gone are the days of hotel groups and brands shying away from residential, it is now the opposite, with almost every hotel group making branded residences part of their growth strategy.
This growth has also been driven by non hospitality brands who see real estate as a way to grow their brand identity and bottom line.
What Are Branded Residences?
Branded residences are residential homes that are developed, designed and in the case of hotel branded homes, managed and operated on completion. They fall into a number of categories, which include, Hotel Branded Residences, Non Hospitality Branded Residences and Standalone Branded Residences. They are associated with 3 distinct brand sectors.
- 1. Luxury hotel chains (e.g., Four Seasons, Ritz-Carlton, Rosewood, Aman)
- 2. High-end fashion houses (e.g., Armani, Fendi, Missoni, Karl Lagerfeld)
- 3. Automobile manufacturers (e.g., Porsche, Aston Martin, Mercedes, Bentley Lamborghini)
To read more our branded residences read our definitive guide into branded residences 2024
Traditional Luxury Apartments: The Established Choice
We do not need to go into detail and explain what traditional luxury apartments and homes are. These properties, while not affiliated with a specific brand, remain the most popular for property developers and homebuyers. In many luxury developments high-end finishes, prime locations, world class management and a range of amenities are all available.
Branded Residences: Are they a Step up?
Branded residences often stand out due to their extensive service offerings:
- 24/7 Concierge Services. From restaurant reservations to travel arrangements, residents enjoy round-the-clock assistance.
- Housekeeping: Regular cleaning and maintenance services, often on par with luxury hotels.
- Room Service: Many branded residences offer in-home dining options from on-site restaurants.
- Valet Parking: A standard feature in most branded residential complexes.
- Spa and Wellness Services: Access to on-site spa facilities and wellness programs.
- Dog Walking & Pet care: Becoming a regular service offering
- Building Maintenance: This where branded residences standout especially with hotel branded homes. The properties, communal areas, private areas and the homes all benefit from a maintenance program that sits alongside the hotel maintenance program.
Traditional Luxury Apartments: Focused Amenities
Whilst the services in traditional luxury apartments may be more limited than branded residences, they do still often include:
- Building Maintenance: Regular upkeep of common areas and facilities.
- Security Services: 24/7 security personnel and surveillance systems.
- Reception Areas: Secure handling of deliveries.
- Optional Housekeeping: Available as an additional service, but not typically included in standard fees.
Branded Residence Amenities / Facilities: Exclusive VIP ownership benefits
The amenities in branded residences often set them apart, this includes not only the actual amenities but also the VIP status that comes with ownership.
With homes branded with a hotel, residential ownership normally comes with enrolment in the hotel companies membership program. Ownership of Marriott Residences receive top tier status in Marriott Bonvoy along with access to ONVIA which is Marriotts owner recognition platform, other major brands such as Four Seasons, Accor and Rosewood all provide top tier membership and VIP privileges complimentary in recognition of residential ownership.
As far as amenities and facilties, this is where branded residences have begun changing the landscape of luxury living.
- Branded Spa Facilities. Access to spa services that mirror those found in the brand’s luxury hotels.
- Fine Dining Restaurants On-site eateries often helmed by renowned chefs.
- Exclusive Clubs and Lounges: Private spaces for residents to socialise and entertain.
- Cutting-Edge Fitness Centers: State-of-the-art equipment and personalised training programs.
- Wellness Programmes: In home wellness and dedicated communal facilities
- Global Privileges: Access to services and amenities at other properties within the brand’s portfolio.
Private Chefs, Libraries, Residents Cinema’s, Office Space, Private Dining rooms, are all becoming common amenities that can be found in luxury branded residences.
Branded Residences: Whats The Brand Premium
Investing in a branded residence often comes with a higher price tag, with so many facilities and service offerings, property developers have no other option but to pass this on to the buyer. There are also the ongoing costs that tend to be more expensive than a traditional development. However one thing we should point out, whether you are buying a simple studio or the biggest penthouse in the project, you do have equal access.
- Purchase Price: Generally higher for a like for like building in the same area, due to the brand premium.
- Service Charges: Often more expensive, reflecting the extensive services offered.
- Potential for Higher Returns: The brand association may lead to better value retention and rental yields, but again this is a general overview. Our experience shows that branded residences maintain their value, due to the ongoing high quality maintenance for not only, the individual homes, but also the maintenance and upkeep of the buildings, common areas, facilities and grounds.
Customisation: Brand Standards vs. Personal Touch
Branded residences often come with:
- Pre-designed Interiors: Reflecting the brand’s aesthetic and standards.
- Potentially limited Customisation Options: To maintain brand consistency across properties.
- Turnkey Solutions: Fully furnished and equipped units ready for immediate occupancy.
Traditional Real Estate Offers:
- Flexible Design Options: Residents have more freedom to customise their living spaces.
- Potential for Personalisation: The ability to create a truly unique home environment.
- Diverse Architectural Styles: Often reflecting local design trends and preferences.
Again we are generalising here, without any absolutes. The beauty of branded residences and traditional real estate, everything can be project specific.
Conclusion: Choosing Your Luxury Living Experience
The choice between a branded residence and a traditional luxury real estate, ultimately depends on individual preference and lifestyle needs.
Branded residences offer:
- A turnkey luxury lifestyle with extensive services and amenities
- The cachet of a renowned brand
- Potential for strong investment returns
Traditional luxury real estate provides:
- More customisation options
- Often lower upfront and ongoing costs
- Possibly more privacy without any concerns of sharing your building with hotel guests.
We would highly recommend you read our 2024 Guide What Are Branded Residences to gain a detailed understanding of what branded residence are and the lifestyle options that they can offer.
As luxury real estate continues to evolve, both options remain attractive to real estate buyers and investors.
Understanding the differences, benefits and negatives of each sector, should help you make a more informed decision, especially as branded residences are still relatively new, compared to traditional luxury apartments or condo developments.
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 luxury real estate 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.
- Insight
- Staff Writer
- What’s the Difference Between Branded Real Estate and Luxury Real Estate?
- branded real estate
