Even though the concept of Branded Residences is relatively new in the real estate industry, it was not just invented.
The concept of branded residences has been around for several years, and the first branded residence can be traced back to the early 1900s.
One of the earliest and most iconic branded residences is The Plaza Hotel in New York City. Opened in 1907, The Plaza Hotel has a long history of luxury and elegance. In recent years, a portion of The Plaza Hotel has been transformed into branded residences known as The Plaza Residences. These exclusive residences offer residents access to the hotel’s amenities and services while enjoying the privacy and comfort of their own homes.
The Plaza Residences exemplify the concept of a branded residence, where the prestigious hotel brand extends its expertise and reputation to the residential component, providing residents with a luxurious lifestyle and an association with a renowned hospitality brand.
Since The Plaza Residences, the concept of branded residences has gained popularity, and numerous other branded residential developments have emerged worldwide, partnering with various luxury brands across different industries.
What exactly is a branded residence?
Branded Residences are luxury residential properties that are developed and marketed in collaboration with a well-known brand, typically a luxury hotel, resort, or fashion label.
The idea behind branded residences is to combine the exclusivity and prestige of a luxury brand with the comfort and amenities of a high-end residential property.
Here are 6 key features and characteristics of branded residences:
- Collaboration with a reputable brand: Branded residences are created through partnerships between real estate developers and established luxury brands. These brands lend their name, reputation, and expertise to the project, often influencing the design, amenities, and services provided.
- High-quality design and finishes: Branded residences are known for their exceptional design and attention to detail. The interiors are typically designed by renowned architects and interior designers, incorporating luxury materials, high-end finishes, and sophisticated aesthetics.
- Premium amenities and services: Branded residences offer a range of amenities and services to enhance the residents’ lifestyle. These may include features like concierge services, 24/7 security, fitness centers, spas, swimming pools, gourmet restaurants, valet parking, housekeeping, and more. The goal is to provide a luxurious and convenient living experience.
- Exclusive access and privileges: Living in a branded residence often comes with exclusive benefits and privileges. Residents may enjoy preferential treatment and access to the facilities and services of the associated brand’s hotels, resorts, or other properties worldwide. This can include discounts on hotel stays, access to private clubs, priority reservations at restaurants, and other similar perks.
- Global locations: Branded residences can be found in prime locations around the world, including major cities, resort destinations, and sought-after neighborhoods. Developers often choose iconic or strategic locations that align with the brand’s image and appeal to affluent buyers.
- Investment potential: Branded residences have gained popularity as investment opportunities. They often retain their value well and can provide attractive rental yields due to their desirability and association with a reputable brand. Buyers are drawn to the combination of luxury living and potential investment returns.
Branded residences can take different forms. Some may be standalone buildings dedicated solely to residential units, while others may be integrated within a larger mixed-use development, including hotels, retail spaces, or office buildings.
Overall, branded residences offer a unique fusion of luxury living and brand association, providing residents with an elevated lifestyle and exclusive perks. However, they also tend to come with a higher price tag compared to standard luxury properties due to the added brand value and premium features.
Branded residences in Portugal
Portugal is one of the European countries with the greatest growth potential within the concept of Branded Residences according to the Knight Frank Global Branded Residences Report 2023. This report concludes that Portugal is in the top 5 destinations for second home purchases, often associated to Branded Residences.
This is an increasing trend and particularly interesting for foreign investors, who are the main target for luxury products. As can be read here “the lifestyle that Portugal is already offering matches the amenities and way of life that branded residences offer and to which foreign investors have become accustomed”.
This is a business segment that is expected to grow 55% by 2026 and there are currently 186 active projects that have been identified worldwide.
If you would like to know more about Branded Residences, explore opportunities in Portugal or just explore real estate investment opportunities, feel free to contact us here.
