Today’s luxury homes feature dozens of amenities never seen before, or even dreamed of. One of the fastest-growing concepts in the luxury residential market is the “branded property” — a residence associated with luxury brands and high-end designers.
Among the big names working to develop these beautiful properties are Armani, Versace and Bottega Veneta, among others. These designers are each bringing their own unique styles and sensibilities to projects around the world.
Armani’s upcoming projects include the Smart Hero-Central Park Plaza complex in Beijing — the renowned designer will be creating the residential units, shared areas and various amenities, to be completed by the end of 2017 — as well as the Century Spire residential tower in one of the Philippines’ top luxury districts, due to be completed by the end of 2018.
In addition, Versace has begun work on its AYKON Nine Elms project in London (scheduled to be completed in 2020), and is nearly done with projects in Beirut and Jeddah. Bottega Veneta recently started developing its initial residential design work. And Eisenzahn 1 — a major property in Berlin — will feature design work by creative director Tomas Maier and furnishings from the luxury brand’s home collections.
While a famous name on the side of the building is a major selling point, this trend is more about what each designer/fashion brand brings to the actual properties. Homebuyers and investors alike are looking for aesthetics, comfort, amenities and lifestyle when it comes to a luxury residence — and a world-famous designer’s creativity can give a property a decided advantage over other luxury homes.
There are varying levels of brand association per property — some projects and brands are limited to the design of the common spaces and individual units in a building or complex. Others have brand associations incorporated into the amenities and additional features of the property.
But some owners may pay for the privilege of having the brand’s interior design team on the project give them personal consultations to add an even higher level of customization to the residence — or a complete branded design with furniture at an exclusive price.
Overall, these branded residences are often priced 30% to 50% more than unbranded properties. Not that a larger price point deters luxury homebuyers; many of these projects sell out quickly.
This is likely due to one of the basic tenets of the fashion industry — reinvention can revitalize an entire product line. In this case, the reinvention is the concept of residential development, which is now incorporating a new level of branding and design into these projects to attract luxury homebuyers.
Because these branded residences are currently located around the world, they may be some investors’ first experience with an international purchase. This means dealing with a different country’s real estate laws, as well as the unique issues of owning a property halfway around the world. But having a world-famous brand associated with the home can boost an investor’s confidence and provide a sense of security.
While this trend has already taken hold in hospitality — many hotels have established associations with luxury brands — the enjoyment of high-end accommodations, amenities and conversation-starters is taken to a new, longer-lasting level with branded residences.
And while this trend creates substantial opportunities for investors, it’s also an appealing option for home-buyers to have a unique property created by world-class designers.