January 16, 2020 2020: The Rise of Branded Residences
No longer simply content with making your master suite replicate the smooth operation of a luxury hotel room or your bathroom seem like a high end Balinese resort spa? Well, a branded residence could well be topping your wish list.
Widely regarded as the next big thing in luxury home design, the market for branded residences, such as London’s Mayfair Park Residences next to the 45 Park Lane hotel (pictured above) is set to soar in 2020.
Dubai’s first Andaz branded luxury designer residences opened in late 2019. Dubai is widely touted as being set to topple New York as the branded residence capital of the world. The Andaz development features private beaches and tailor made units where residents can live “the Andaz way” amid a fusion of local culture and cutting edge style.
And the investment opportunities also seem sound. According to Savills World Research, “Branded property is positioned to stand out in more challenging market conditions.”
Whether it’s hotels clawing back market share from the rise of Airbnb or simply consumer desire for luxury modern home designs that offer community and cultural buy-in along with the best in luxury, there are now a multitude of branded residences across the globe, many of them aligned with hotel groups such as Four Seasons or Ritz-Carlton; although fashion brands and celebrities are also getting in on the act.
Branded residences are available in a wide range of typologies: hotel-led developments with integrated residences; luxury resorts with permanent villa residences or stand-alone residential developments with a hotel or brand tie-in. The benefits for home owners or investors of these branded residences include high quality services and a high level of trust in the quality of the development. Lock and leave options also offer peace of mind.
Of course while hotel brands seem to be the obvious launch pad for high end residences, a plethora of less obviously linked ventures are also using luxury home designs as a way to invest their profits and expand their brand. One of the latest to do this is Diesel.
The Italian brand recently announced plans to open a luxury condominium in the Wynwood, Miami. The scheme, (artist’s impression above) will include a pool, gym, art gallery, and more and is designed to be the “essence of Diesel: a total luxury space of comfort and cutting-edge design.”
Closer to home, One Barangaroo, Crown Residences in Sydney (pictured bottom) was one of Australia’s first fully-integrated, six-star hotel branded residences, and is regarded as a highly desirable scheme for both Australian and offshore purchasers.
The premiums that such developments attract hint that there’s no slowdown in sight for this buoyant market segment. And while they may only be attainable for the very wealthy, the trickle-down effects for modern home designs will certainly be interesting to watch.