There is no single industry definition, but at its core, a branded residence is a residential property available for purchase on the open market that is affiliated, usually by design and servicing, to a well-known brand. This excludes traditional serviced (rental) apartments, although owners of branded residences can rent out their own properties.

Brand association instils buyer confidence through the assurance of a high level of service and usually an exceptional amenity offer. Buyers aren’t the only beneficiaries. There are significant advantages for developers and the brand themselves as well (see graphic, below):

How do they work?

Branded residences are usually a partnership between a brand and a developer. The brand grants a licence to the developer to market and sell residences incorporating their brand. In many cases, the brand also manages and services the residential properties as part of an optional or mandatory rental programme.

Fees usually charged

Fees payable by the developer include a marketing licensing fee (or royalty fee), paid to the brand on every sale. The brand also levies design fees (or a technical and services fee) in the conception of the scheme. Fees paid by the property owner include a trademark licence fee, for having the brand on their residence, management fees and the usual service charges or HOA fees.

Typical specification and service offer

Unit types and sizes vary depending on scheme location. Furniture, Fixtures & Equipment (FF&E) packages are mandatory if a buyer wishes to enter their property into the managed rental scheme.

High specification plays an important role in positioning a product, but it is no longer the sole differentiator for branded schemes, particularly in more mature markets.

What sets these schemes apart is the services on offer. ‘Base services’ (included in service charges) comprise concierge and the use of hotel amenities (if affiliated to one), or in some cases, dedicated amenities. ‘On-demand’ services, at additional cost, range from housekeeping to pet services (see table, below).

_{Read the articles within Spotlight: Branded Residences below.}

Further information

Global Residential Development Consultancy