According to research by Savills, prestigious branded residences - which as a sector have remained resilient in the face of global headwinds - are set to continue their growth worldwide.
The number of branded residences schemes has increased by over 160% in the last decade, with new brands, locations, and a shift in amenities set to propel the sector even further. With more than 690 completed schemes globally, a further 600 are expected to be delivered by 2030.
Says Andrew Golding, chief executive of the Pam Golding Property group, which is Savills’ exclusive residential real-estate partner in Africa, “As noted by Savills, in the world of luxury real estate, branded residences have emerged as a unique and appealing option for property purchasers.
“The affiliation of a luxury brand to a residential product, through the associated quality, design, and service that differentiate those brands, provides the incentive for buyers to pay a premium for these qualities. Existing brand awareness can increase the profile of a branded residence scheme and can attract larger amounts of interest, and consequently buyers, to a project.
“Importantly for investors, compared to non-branded stock, branded residences can command a significant price premium, though it varies by location. Savills analysis shows that the average global premium for branded residences, over a comparable non-branded product, stands at 30% on an unweighted basis. It should be noted, however, that these premiums do vary significantly by location, brand, and type of scheme.”
