Branded residences operate predominantly within the prime end of local residential markets. Associations of quality, luxury, and service which accompany brand affiliation can encourage premium pricing compared to other comparable nonbranded stock in the market. Additionally, international knowledge of brands operating within the branded residential sphere can attract increased interest from global buyers.

Analysis of a sample of markets demonstrates that the global premium stands at an average of 30% on an unweighted basis; however, premiums do vary significantly depending on location, brand, and type of branded residential scheme.

Global cities tend to see a lower average premium than other markets as branded schemes may face higher levels of competition from non-branded stock with similar provision of amenities and similar quality. Notwithstanding this, there is still an attractive premium in these cities; premiums in global cities are estimated to be around the 25% mark on average. In these markets, brands and developers tend to focus on lifestyle and amenities that can be found uniquely in their schemes, rather than residential finishes, as these can be easily replicated in non-branded schemes in global cities.

Emerging cities, on the other hand tend to enjoy the highest price premiums, with branded residential schemes commanding average premiums of over 50% compared to non-branded offerings. Growing numbers of HNWIs, expanding economies, and an increasing desire to maintaining appearances, have produced rising demand for branded residences across many emerging cities. In these growing markets, it is likely that a buyer will be looking for a branded residence to use as a primary residence compared to other market types as branded residences offer security, high-quality finishes, and superior implied status compared to non-branded products in these locations.

Finally, premiums in resort locations can be as varied as the locations themselves, but on average, premiums for resort markets stand at just over 30%. These premiums can vary based on market composition, local residential market dynamics, and buyer source markets. As the classification suggests, resort locations tend to be most popular with second home buyers looking to escape the frenetic pace of life in their home cities.

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

Further information

Global Residential Development Consultancy