INDIA’S GROWING LOVE FOR BRANDED RESIDENCES

The story of branded residences started in in 1920’s in New York City with the Sherry-Netherland Hotel, which offered serviced cooperative apartments alongside its hotel. In 1980s after a significant pause, the idea gained traction again when Four Seasons hotel in Boston sold out its condominiums. And from thereon, the concept of branded residences has caught on globally, with major brands in fashion, and lifestyle too joining the fray. It was in 2010, that India’s experiment with branded residences began with Trump Tower and since then, this segment of luxury residences has only grown, every year seeing the advent of new hospitality or lifestyle brand bespoke residences for India’s HNIs. With rising aspirations, branded residences are seeing great traction across Indian cities. The brands profit with collaborating with developer through licensing fee or through service charges, buyers benefit from turnkey luxury units, five-star property management and a range of amenities, while developers profit with attractive premiums and higher project revenues.

THE EMERGING BRANDED RESIDENCES SEGMENT

• Last year alone, worldwide 240 new branded residence projects were added across 100 markets, according to Savills. As of today, the global inventory stands at over 700 projects and approximately 26,000 units across various segments, according to Noesis Capital Advisors.
• Since 1988 when first branded residence was launched in Asia Pacific, the region has emerged as a central hub for branded residences, accounting for 21% of the global supply in this sector (both completed and pipeline). As of 2024, there are more than 160 completed branded residences in Asia Pacific, with an additional 160 projects under development.
• India, with 2,900 operational branded residence units currently captures only 3% of the global market share as per NOESIS Research.

WHAT’S DRIVING THE TREND

The most important factor driving the demand for branded residences is the growing population of ultra high-net-worth individuals. India has the fourth-largest High-Net-Worth Individual (HNWI) population in the world, with 85,698 individuals holding over $10 million in assets as of 2025, according to Knight Frank’s The country’s ultra-wealthy population is estimated to grow significantly in the coming years, driven by entrepreneurship and growth in sectors like technology, manufacturing, Pharma, Fintech among others. On the other end, leading hotel chains present in India and many more entering the country, have enough ground to expand operations by collaborating with developers and introducing another premium offering. Factors like improving infrastructure rising disposable incomes growth of Tier-II cities is further contributing to the positive outlook.

TIER -2 CITIES: THE NEW FRONTIER

The analysts project cities like Shimla, Cochin, Indore, Chandigarh Ahmedabad, Lucknow, Ludhiana and Bhopal also as the potential hotspots for branded residences, being either known for tourism & hospitality or trade and commerce. These cities already have presence of premium hospitality chains like Novotel, Oberoi, IHCL, Radisson Blue, Grand Hyatt, etc. making the coming-up of branded residences in future a near possibility. The other reason for branded residences proliferation in Tier 2 cities in coming years is the visible demand. These cities have seen a phenomenal growth in recent years, leading to a growing appetite for aspirational, luxury living. Branded residence will add the next layer to their evolving luxury home landscape. For developers too, Tier-2 cities offer a compelling story for branded homes as the fine line between Tier 1 and 2 cities is blurring and many HNIs prefer to set base in smaller cities at the periphery of a metro city. This is translating into increased demand for professionally managed living space with likeminded neighborhood, as can be provided by only branded residences.

THE WATCHOUTS WHEN BUYING A BRANDED HOME

There is no doubt premium living comes at a hefty cost and with it comes certain due diligences. The legal experts share what should buyers be aware of when purchasing branded residences.

Due Diligence: Avoid blindly trusting the brand, as expensive doesn’t always mean better. Thoroughly research the project and developer, verify paperwork and title deeds to ensure no legal issues exist.

Brand Affiliation: Take in account, the relationship between the brand and the developer. Developer owns the building, and there is a licensing agreement in place with the brand. See if it is a long-term agreement and if there is a possibility of brand change.

Lifestyle & Amenities: Branded residences with same brand may vary across different cities in its offering, fees and rules for similar amenities. In case of non-hospitality brands, buyers should carefully factor the services and value being given in lieu of the annual service charge.

On-going Costs: Be aware of annual service charges and additional fees for à-la-carte services, which can accumulate and must be factored into the overall budget

THE UPSIDES & DOWNSIDES

While hotel-linked branded residences have entered India, interestingly, non-hotel brand collaborations, account for nearly 75% of the market. Luxury home is no more limited to expensive materials or prime locations; it is now about exclusivity and curated lifestyle. Branded residences fulfil these criteria and place the homebuyers in a niche prestigious community. With the hassle-free, hotel like living, 24/7 concierge services, spas and massages, fine dining, housekeeping, world-class security and professional property management, branded residences offer serviced lifestyle for the wealthy.
Branded residences are also considered safe avenue for asset allocation as they offer higher premiums than standard luxury apartments and tend to appreciate faster due to limited supply. The risks or shortcomings of buying a branded residence is first and foremost the steep maintenance fees, service charges, and brand premiums, which add up to the additional cost of living. In addition, the strict brand design guidelines offer buyers a very little scope of personalization of their homes. As, branded residences cater to the niche profile of UHNIs, finding buyers for resale could be a challenge. What’s more, the prestige of these residences is tied to the brand reputation, if the associated brand loses prestige or exits the market, the property can face difficulty in retaining its premium pricing.

WHAT THE FUTURE LOOKS LIKE

With rapidly expanding population of HNWIs and UHNIs in India, the demand for branded residences is projected to grow by 60% and around 1,200 branded residential developments in India by 2027, as per NOESIS Capital Advisors. However, being a new asset class of luxury residential development, there are a few wrinkles to be ironed such as the ownership titles, the Residential Welfare Associations (RWAs) and the role of RERA. It is essential to establish a transparent framework & definitive scope of services between all the stakeholders, for consistent growth of this sunrise segment.

Are Branded Residences A Good Investment?

With the supply of branded residences expanding in Indian cities, the question arises, apart from being a lifestyle statement, is it a good investment too. A section of experts believe, yes - they are because they typically command higher premiums, enjoy strong brand appeal leading to faster capital appreciation, and generate higher rental yields due to their exclusive lifestyle, professional management, and premium services. While some experts contend that as opposed to an investment, branded residences are first and foremost a lifestyle purchase. The resale can take time as finding buyers willing to pay the premium resale value can take time and the long-term potential for rental income from these high-end properties, often priced above market averages is also a question mark.

Other challenges include potential brand dilution with entry of more brands in the market or market saturation. In terms of property appreciation, brand ed residences are known to offer higher appreciation potential and resilience during market downturns compared to traditional luxury homes, driven by brand name, exclusive services and Professional service-led management. On the other hand, high ongoing costs of luxury services and maintenance, limited personalization scope of home and brand dependency and dilution of capital cost if the brand loses prestige are the factors that can impact the property appreciation over time.