Market for branded residences expanding—report

Convenience is the key selling point for branded residences

Hospitality

By Allie Sanchez

“Branded residences offer the ultimate property investment, offering the reassurance of an established luxury name whose standards remain the same wherever they are in the world. The advantages are clear: branded residences are usually in prime locations; offer cutting-edge interior design, technology and architecture; come with professional management providing hassle-free ownership; and offer a secure environment and access to a luxury lifestyle. Increasingly with international resort and hotel groups, owners can also exchange use of their residences with similar quality properties elsewhere in the group’s network,” a recent report on the market for branded residences said.

The report further noted that the Middle and Far East are emerging as strong markets for such product offerings, although North America remains a strong market.

And while exotic locations such as the Maldives and Seychelles remain attractive to buyers, urban centers remain a darling of the market. For instance, the report noted that industry leader Four Seasons is developing 60% of its properties in urban centers, while only 40% are located in resort settings.

“Prime urban branded developments have greater appeal because they are perceived as less risky,” Robert Green, managing director of Sphere Estates, noted. He added that “brands like Four Seasons are turning their attention to European destinations. We expect both urban and resort branded residences to grow over the next five years in Europe, but also in parts of Africa and South America where there are currently very few available.” 
 

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