The incredibly resilient sector continues to add new players and increase its buyer base among the increasing numbers of HNWIs globally
Branded residences, as a property sector, has proved to be incredibly resilient in the face of global uncertainty and change. The sector has not only survived the disturbance but continues to thrive. Over the past ten years, the sector has grown by over 150%, and the pipeline of future branded residences remains strong.
Read our latest report to discover how brands and developers can achieve success through an understanding of local markets, careful buyer targeting, and brand alignment. Scroll down to explore the individual articles.
Today, there are 640 schemes, accounting for nearly 100,000 units, operating across every continent. The growth of the sector is set to continue apace, with supply levels forecast to exceed 1,100 schemes by 2027, nearly doubling the current supply levels.
The diversification of the branded residence space isn’t limited to geographic diversification. The sector is evolving from a market dominated entirely by hotel brands to a diverse combination of hotel and non-hotel brands in the sector.
Branded residences by chain scales
Historically dominated by luxury hotel chains, other chains are taking increasing market share as the branded residences sector expands. Different locations necessitate different development solutions which, in turn, must take into account the evolution of buyer preferences.
Savills World Research spoke to six branded residence developers active in different global regions to get their views and opinions on the strength of the branded residence space and the markets within which they are active. Click through to hear what they had to say.
According to the brands themselves… In the wake of the pandemic, people’s needs for their homes have shifted dramatically compared to 2019. Branded Residences are quickly adapting to these new needs by providing more personalised, spacious, and private accommodations.
Branded residence price premiums
Compared to non-branded stock, branded residences can command a significant price premium. Savills analysis shows that the average global premium for branded residences, over a comparable non-branded product, stands at 30% on an unweighted basis.
The global market for branded residences is continuing to expand, with brands looking for new locations to grow their portfolios. Affluent, globally mobile individuals will continue to drive demand for branded residences.
Read the articles within Spotlight: Branded Residences below.