Branded residences form a rapidly growing segment of the global real estate market. First created in the US around the 1920s, branded residences have grown rapidly over the past 30 years, rising from just 15 schemes in 1993 to 690 as of mid-2023.
Aimed at global high net worth individuals, branded residences are distinguished from other kinds of serviced apartments by their brand affiliation, which imbues every part of their offer from design to service levels.
The segment – which comprises hotel brands such as Ritz-Carlton and non-hotel branded schemes by brands such as Greg Norman – is on both a rapid growth trajectory and a swift path to diversification.
Our research reveals a pipeline of branded residential schemes that will push the number of schemes to 1,200 by the end of the decade.
Although branded residences, which first appeared in North America, did not reach Asia-Pacific, Latin America and Europe until the 1990s, they can now be found across the world.
Global growth
In 2023, there were approximately 250 schemes in North America, more than 150 in Asia-Pacific, nearly 90 in Latin America, 110 in Europe, over 70 in the Middle East and North Africa, and nearly 10 in Africa. The highest growth levels are expected in the Middle East and North Africa – where the number of schemes is set to more than double by 2030 – followed by Latin America.
Brands are constantly seeking new locations where they can develop their portfolios of residences, and the changing distribution of branded residences reflects shifting global wealth patterns. Brands are moving into emerging markets to capitalise on rapid economic growth and associated wealth accumulation.
Rather than being predominantly primary homes, branded residences tend to be turn-key residences in desirable locations that form part of an owner’s wider property portfolio. In some emerging locations however, such as in some Asia-Pacific markets, branded residences may be perceived to be higher quality than existing non-branded stock and can sometimes serve as primary residences.
As the market for branded residences has grown and diversified across regions, new players have entered the sector. The branded residential market began with residences associated with hotel brands, often annexed to hotels run by those brands. While hotel brands remain dominant, non-hotel brands have since entered the sector and are capturing market share.
Major players
Four Seasons currently leads the hotel branded segment, with over 50residences and more than 25 in the pipeline. Other well-known hotel brands in the sector include Ritz-Carlton – which, like W Hotels, is owned by Marriott – Mandarin Oriental and Kempinski.
Kempinksi has plans to more than double its residences, to more than 20, by 2030. Other hotel brands making a big commitment to the branded residential sector include Rosewood, with more than 20 residences in development, and One&Only, which will more than triple its existing four residences by 2030.
Ritz-Carlton, meanwhile, has nearly 30 new residences in the pipeline. Fellow Marriott brand W also has new residences planned; combined, they will make Marriott the top parent company in the hotel branded residential sector.
Beyond hotel brands
Non-hotel brands offer clients something slightly different than their hotel counterparts. Their residences usually aren’t associated with a hotel building, and they find their brand expression in design and furnishings. It’s no surprise, then, to find fashion brands such as Versace and Armani in this sector, though brands with other associations, such as Greg Norman and Trump, compete too.
The undisputed leader in the non-hotel branded residential sector is YOO, which has two lines – YOO inspired by Starck and YOO Studio – and a total of more than 60 residences completed, plus nearly 20 in the pipeline.
Unsurprisingly, YOO is the top non-hotel parent company too, followed by Trump. But new entrants such as Lamborghini and LightArt could disrupt the sector in future.
The nuber of new residences planned across the branded residential sector is testimony to its robust fundamentals. Brand affiliation doesn’t just bring kudos; it also attracts a global average price premium of up to 30 per cent over equivalent non-branded stock.
To find out more on how branded residences as a sector has remained resilient in the face of global headwinds click here.
