The potential for branded residences in India

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The potential for branded residences in India

The Asia Pacific region has emerged as a central hub for branded residences, accounting for 21% of the global supply in this sector.

Since the first branded residence was launched in the region in 1988, the market has grown significantly, particularly in the last decade. Our analysis shows that there are more than 160 completed branded residences in Asia Pacific, with an additional 160 projects under development.

Untapped potential

India, the world's most populous country with a population exceeding 1.4 billion, is a key market in the Asia Pacific region. Despite this, India’s potential remains largely untapped and lags behind regional branded residential powerhouses such as Vietnam and Thailand, each of which offers more than double India's current network of branded residences.

There are compelling value propositions for developing branded residential schemes across India for both non-hotel and hotel brands. In urban hubs, branded developments can serve as primary residences for the country’s growing number of high-net-worth individuals (HNWI) and their families. In resort locations, branded residences are likely to be used as secondary homes.

Non-hotel brands have the biggest market share

In India the sector is currently dominated by non-hotel brands, which currently represent 75% of the market. These non-hotel brands tend to differentiate themselves from hotels by focusing more on integrating their specific brand through unique product and design elements. The most active non-hotel player in the country is YOO, which encompasses multiple brand denominations. Two-thirds of the hotel-branded residences in India fall within the luxury classification, catering to the most discerning buyers.

Scope to become a major regional player

Overall, the growth potential for India in the branded residential sector is substantial – a significant gap exists in its key cities to introduce world-class schemes that cater to the ever-growing affluent population. 

As this market continues to mature, it is poised to witness an increase in the number and variety of branded residential developments, and will position India as a significant player in the Asia Pacific region in this dynamic and fast-growing sector.

 

Further information

Contact Peter Grmek or Rosie Tucker 

Branded Residences: India Snapshot

 

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