Branded residences; luxury apartments associated with prestigious brands like Armani or Bulgari, are experiencing significant growth. According to Savills, the number of branded residence projects has increased by over 160% in the past decade, with 600 additional projects expected by 2030. This growth is driven by brand association, which guarantees quality, design, and service, attracting buyers willing to pay a premium for exclusivity. On average, branded residences command a 30% higher price than similar non-branded properties. While initially dominated by high-end brands, the market is diversifying with hotel chains, car manufacturers, and retail giants offering branded residences. This trend reflects a shift in consumer preferences toward luxury living connected to specific brands and lifestyles.
Imagine owning a luxurious apartment that not only boasts high-end finishes and stunning views, but also carries the name of a prestigious brand like Armani or Bulgari. This is the concept behind branded residences, a segment of the luxury real estate market experiencing significant growth.
According to research by Savills, a leading real estate consultancy, the number of branded residence projects has skyrocketed by over 160% in the past decade. This translates to a massive increase, with an additional 600 branded residences planned for completion by 2030, adding to the existing 690 projects currently operational worldwide.
Savills highlights several factors driving the popularity of branded residences. Firstly, the association with a luxury brand promises a certain level of quality, design, and service that sets these residences apart from the competition. This brand recognition attracts buyers willing to pay a premium for exclusivity and a guaranteed level of luxury living. For example, a branded residence might offer amenities like concierge services, private chef arrangements, or access to exclusive resident-only events.
Branded residences offer potential benefits for investors as well. Savills research suggests that, on average, branded residences command a 30% price premium compared to similar non-branded properties. This means a branded residence could potentially sell for 30% more than a comparable non-branded apartment in the same location. However, it's important to note that this premium can vary depending on location, brand reputation, and the specific project itself. A branded residence by a high-end fashion brand in a prime city center might command a much higher premium than a branded residence by a car manufacturer in a suburban area.
While the initial focus was on high-end brands like Armani and Bulgari, the market for branded residences is diversifying. Hotel chains like Marriott and Four Seasons, car manufacturers like Aston Martin, and even retail giants like Hard Rock Cafe are entering the fray, offering branded residences that cater to a wider range of tastes and budgets. This allows for a more diverse range of potential buyers, from those seeking the ultimate in luxury to those who want a connection to a particular brand or lifestyle.
The growth of branded residences reflects a changing consumer preference in the luxury real estate market. Buyers are increasingly seeking not just a luxurious space, but also a connection to a brand and the lifestyle it represents. This trend is likely to continue in the coming years, offering exciting new options for those seeking a unique and prestigious living experience.
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