The branded residences sector has seen remarkable growth with over 700 projects globally. Luxury brands like Armani and Bentley appeal to discerning buyers, driving the trend towards integrated luxury experiences in residential developments.
Liam Bailey of Knight Frank notes a luxury trend blending hospitality, clubs, and real estate, creating a "residence-hotel-club" ecosystem fostering community in developments.
Aman in New York showcases luxury living with ultra-residences, a five-star hotel, and a private club, catering to affluent buyers seeking diverse amenities.
Luxury buyers encounter dilemmas amid global expansion of branded residences, akin to choosing top-tier fashion labels or luxury cars, amid increasing global options.
The branded residences sector, ignited by the Sherry-Netherland debut in 1927, has evolved significantly, witnessing a surge in luxury developments worldwide. Presently, boasting over 700 projects globally, the sector is expected to double by 2027.
Luxury brands like Armani, Roberto Cavalli, Fendi, Bulgari, Porsche, Bentley, and Aston Martin have entered, appealing to high-end buyers seeking prestige. These branded residences, seen as "trophy purchases," symbolize status among discerning buyers. The sector's growth reflects the allure of luxury brands and reshapes buyer preferences. It highlights the evolving landscape of luxury real estate, catering to discerning buyers worldwide with diverse options and prestigious associations.
A Living Room in The Peninsula Residences London Courtesy of HSH
Partnerships between consumer companies and real estate developers play a pivotal role in driving this surge. Brand names command premiums on high-end developments and enhance sales velocity and certainty. The right brand affiliation can add up to 30 percent to a project's sales price, offering tangible benefits for both parties involved.
Hospitality brands such as Peninsula, Aman, and Rosewood Hotels & Resorts are expanding their presence in the branded residences market, offering a seamless blend of luxury living and hotel-like services. Neil Jacobs, CEO of Six Senses, emphasizes the financial and marketing contributions of branded residences to hotel chains, with approximately 50 percent of new properties now incorporating residential components.
The Bulgari Lighthouse, the Italian jeweler’s latest project in partnership with Dubai developer Meraas, is under construction on the city’s Jumeirah Bay Island, Courtesy of BULGARI
However, venturing into branded residences poses challenges for newcomers, particularly those from non-hospitality fields. Additional due diligence is required to ensure quality and service standards. Locations like Dubai and Miami have emerged as hotspots for branded developments, attracting affluent international buyers with their luxury offerings and vibrant lifestyles.
Dubai stands out as a global hub for branded residences, with projects from renowned brands like Armani, Bulgari, Lamborghini, and Ritz-Carlton commanding significant premiums in the market. The success of branded schemes in Dubai reflects consumer willingness to pay for the standards and luxury experiences associated with prestigious brands.
Aston Martin Miami courtesy of Aston Martin
Luxury auto brands like Bentley, Aston Martin, and Porsche are advancing in Miami's branded residences, catering to enthusiasts and affluent buyers.
Fashion houses like Baccarat, Fendi, Missoni, and Cavalli are also entering Miami's real estate market. Projects like Ora by Casa Tua blend club experiences with living spaces, while developer-created brands like Jade, Icon, and Yoo offer unique luxury lifestyles, meeting growing demand.
Aman NY Residences courtesy of Aman
In New York, branded residences such as Aman exemplify the trend of creating an all-encompassing "residence-hotel-club" ecosystem within a single project. While this model may not suit every operator, it underscores the increasing desire among high-end buyers for integrated luxury experiences and the assurance of brand quality and reputation.
As the branded residences sector continues to expand globally, prospective buyers face the challenge of choosing between prestigious brands and lifestyle offerings. With options proliferating across different markets, the appeal of branded residences lies in their ability to provide a sense of security, confidence, and unparalleled luxury living experiences.