As of 2023, there are 740 branded residence schemes in operation globally totalling more than 100,000 units. This is an increase from 640 in 2022 and 580 in 2021. The rise shows outstanding demand as well as growing interest from operators, brands, investors and developers. In future, this market is set to comprise over 1,100 schemes, not counting those which are yet to be announced.

In terms of geographies, year by year we see new locations entering the market. For example, countries such as Jamaica, Nigeria, Oman and Pakistan all have projects in the pipeline which represent their first venture into the branded residence space.

North America once dominated fully with 100 per cent of the market until 1988. However, this is now much more balanced with Asia Pacific accounting for 24 per cent of global branded residence projects to rival North America’s now 28 per cent share. South America, Europe and the Middle East are all evenly involved with around a 15 per cent share each.

Essentially, the premium achievable for these developments will depend on the standard of surrounding infrastructure in the local market. As a rule of thumb, the less mature the local market the higher the premium. In emerging markets, such as Brazil and areas of the Middle East, the average premium is 54 per cent. On the other hand, global cities experience a premium of 24 per cent on average. Overall, the global average premium is 30 per cent.

As with geographies, increasing numbers of brands are also entering the market. Most interesting is the increase of non-hotel brands that now have a stake in the branded residential sector. Prior to 2000, Trump was the only non-hotelier brand, with five branded residential schemes. There are now over 140 non-hotelier schemes currently operational or in the pipeline representing a 286 per cent increase.

Further information

Contact Charlotte Williams

Spotlight: Branded Residences – 2022