Why branded residences are the fastest growing property market
One of the luxury sector’s biggest success stories in recent years, the rise of the branded residence market underlines the increasing power of brand alignment to the UHNW lifestyle.Once a niche offering, these luxury properties, infused with the design and quality hallmarks of prestige brands, have exploded in popularity over the past decade, and now represent the fastest growing market in global luxury real estate.
For today’s UHNW audiences, the draw of an exceptional lifestyle is no longer just about tangible luxury but in distilling the essence of a brand into an immersive offering. Demand for this signature experience is driving unprecedented expansion in the market – with 12% growth each year predicted in the branded residences sector up to 2026.
Hotels and Resorts have traditionally been the major market player and were the first to align and expand their lifestyle, brand and service into the residential market. Having first appeared in New York in the 1920s, the concept of branded residences accelerated in the 1980s with Four Seasons leading the way in North America and Aman in Asia with Amanpuri on Phuket.
Since then, many well-known brands such as One&Only, Rosewood, Ritz-Carlton, Fairmont and Jumeirah have joined the surge, And as branded residences have increasingly become an integral part of their established offer, an increasing trend toward standalone developments is now introducing residences without any hotel component at all.
For hotels and resorts, branded residences continue to be a compelling and resilient proposition, increasing both developer and consumer trust, while the ability of these elevated residences – typically attracting a 30 per cent premium – to hold their value on resale allows buyers to invest with confidence.
Expanding the brand
However, it is not just hotels and resorts that are playing in the field. Luxury consumer brands are also now creating residences that express their values and draw on their own storytelling, from fashion houses such as Bulgari, Dolce & Gabbana, Louis Vuitton and Armani to car brands such as Porsche, which kicked off the trend in 2017 with its Porsche Design Tower on Miami’s Sunny Isles Beach, complete with car elevator.
Aston Martin’s 66-storey residential tower launched in May 2024 is the latest addition to Miami’s branded residence market – and although the car is not obligatory to the lifestyle, one in eight residents already owns one.
It’s clear that the immense power of alignment between brand and buyer continues to drive voracious demand as this market evolves and diversifies even further. Designers are taking advantage of exciting opportunities to collaborate with developers, brands to connect their essence more personally with the audience and property buyers to align their lifestyles and express their personalities.
Those looking to invest should look for a world-class brand that is fiercely protective of its reputation, noted luxury brand consultant and Graf London founder Jenny Naylor in The Times earlier this year. “It cannot be just a name above the door. The allure of a brand must live a life well beyond [construction] completion. Its DNA must permeate everything.”
Global reach
North America still boasts the largest share of branded residences with 32 percent of the global market, concentrated in New York, Miami and Los Angeles. However, it is Asia and the Middle East that lead growth, with over 40 branded residences in Dubai alone, and 30 in the pipeline.
In London, a perennially strong performer in the luxury residential market, recent high-profile developments have included the Mandarin Oriental Mayfair and The Peninsula London, both of which sold out at pace. The Whiteley London (by Six Senses) and The OWO (by Raffles) are currently drawing buyers and design magazines alike to their doors – both as residential properties and destinations in themselves, offering premium dining and shopping opportunities.
Wherever branded residences are located though, the future resides firmly in their ability to distill compelling elements of a brand into an immersive lifestyle and align them to buyers. In this way, they can amplify established brand success – and redefine a new level of luxury where our choices and our identity are reflected in our environment like never before.