Building on its spectacular growth over the past decade, the global market for branded residences continues to grow
The branded residential sector looks set to maintain its resilience and continue its extraordinary run of growth. The last ten years has seen the number of branded residences increase by 230%, adding more than 50,000 units across 356 schemes. Building on record growth last year, 2021 is expected to bring another 77 new schemes to market.
The global market for branded residences is continuing to expand, with brands looking for new locations to grow their portfolios. Established, emerging, and new markets are set to benefit with countries including Dominica and Belgium both seeing their first branded scheme open this year.
Not only is the sector continuing to grow and diversify, but so too are the amenities offered by brands across their portfolios
Riyan Itani, Head of Savills Global Residential Development Consultancy
While the sector is still led by luxury brands, there is significant opportunity in the upper-upscale, upscale and non-hotel segments. The pipeline for these types of brands is fast expanding as the sector continues to diversify, though upper-upscale is leading the pack in terms of pipeline growth.
Not only is the sector continuing to grow and diversify, but so too are the amenities offered by brands across their portfolios. No longer the purview of just luxury brands, more chain scales are expanding their amenity offering to appeal to discerning potential buyers.
Icon Vallarta, Mexico - YOO by Starck
The sector is not immune from the challenges facing the planet, and as a result, increasing numbers of operators are implementing environmental, social, and governance (ESG) strategies to mitigate their environmental impact while boosting their social value credentials.
As the sector touches almost every corner of the globe, and more brands participate, competition is growing. An understanding of local markets, careful buyer targeting and brand alignment is essential. Huge potential remains, but careful planning and advice is key to individual success.
Read each section below...
Read the articles within Spotlight: Branded Residences below.
Further information
Global Residential Development Consultancy