While not a new trend, with the first sale of owning a branded residence starting back in the 1920s, growth in this luxury segment is back with a vengeance.
In a recent Estate of Mind Podcast, Tami Simms and Jack Miller not only explored the history of branded residences, but the concept, appeal, and recent increase in popularity.
In this blog, we summarize as well as dive a little deeper into their narrative.
THE DIFFERENTIATORS
Branded residences are a unique fusion of luxury hospitality and real estate, offering a range of amenities and services that differentiate them from traditional residential properties:
- They are mostly associated with well-known hospitality or lifestyle brands, an association that often brings a sense of exclusivity, luxury, and trust to the property.
- They tend to feature high-quality design and architecture reflecting the brand’s identity and values, thereby offering a cohesive experience for residents.
- Typically offering a wide range of amenities including spas, fitness centers, pools, concierge services, valet parking, fine dining restaurants, and private lounges. These amenities enhance residents’ lifestyles and provide a sense of luxury and convenience.
- Residents can expect personalized and attentive service similar to those found in a luxury hotel, including housekeeping, room service, 24/7 concierge services, maintenance, and security, ensuring a hassle-free living experience.
- Branded residences often curate exclusive experiences and events for residents, such as culinary tastings, wellness programs, cultural events, and VIP access to local attractions. These experiences create a sense of community and add value to the resident’s lifestyle.
- Some branded residences are part of larger hospitality or real estate portfolios, giving residents access to a global network of properties and amenities. This can include privileges such as preferential rates at other properties, reciprocal club memberships, and VIP treatment when traveling.
Overall, branded residences offer a luxurious and lifestyle-driven living experience, combining the comforts of home with the amenities and services of a five-star hotel.
THE GROWTH
Owning in a branded residence has not only burgeoned over the last few years but has now gone beyond traditional hotel brands, such as the Four Seasons and The Ritz-Carlton, to becoming associated with luxury brands in other industries including fashion and automotive, including Armani, Gucci, Ferrari, and Saab.
Certainly, for high-end fashion brands, who have already ventured into the world of home décor, expanding into real estate development is not a giant leap. In fact, according to Fashion Network their expansion has now moved into another dimension, “where “branded houses” are being sold for millions to the wealthiest pockets”.
For many builders and developers trying to automate their processes, partnering with the automotive industry seems like an intelligent move given car maker’s ability to streamline efficiencies.
In a recent article from Forbes, they predict the blending of the two industries, and showcase why the luxury real estate market is already in partnership with brands such as Mercedes Benz, Bugatti, Aston Martin, or Porsche. This has not only strengthened the property’s reputation for high quality and extraordinary service but appealed to those appreciating the status symbol.
So, perhaps it’s not such as surprise in today’s market, where the affluent aspire to attain a curated lifestyle full of amenities and experiences, that these types of properties have seen such an increase in popularity!
REASONS FOR POPULARITY
- The association and exclusivity of a reputable brand can enhance a property’s value and desirability, increasing its resale investment potential. Additionally, branded residences often offer rental management programs, allowing owners to generate rental income when they are not using the property themselves.
- Whether it’s the ambiance, design aesthetics, or curated events and experiences, branded residences aim to create a unique living experience that resonates with their target market. Expectations are that the amenities will not only enhance the lifestyle of residents but provide a sense of exclusivity and variety.
- There is a perception that branded residences offer a certain level of quality assurance. They trust the reputation of the brand to deliver the same high-quality amenities, services, and design standards synonymous with their name.
- The affluent have become attracted to the cachet of living in a property associated with a renowned brand, whether it’s a luxury hotel, a high-end fashion label, or a famous architect.
- Luxury brands typically have global recognition which is highly appealing to affluent buyers who value the convenience and consistency of a familiar brand, especially when purchasing property in a foreign country or city.
- Residents of branded residences often feel a sense of community and belonging, fostered by shared amenities, social events, and the exclusivity of living among like-minded individuals who appreciate the brand’s values and ethos.
Overall, the combination of luxury, quality, exclusivity, and lifestyle appeal makes branded residences a popular choice for discerning buyers seeking a unique and upscale living experience.
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