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The Allure Of Branded Residences For High-Net-Worth Buyers

Priya Singh | 2024-03-05

According to industry reports, the global supply of branded residences has seen a 230 per cent jump in the last decade, totalling over 580 developments worldwide, thus indicating a potential increase in demand in this sector
In the dossiers of luxury real estate history, the concept of branded residences traces its roots back to the bustling streets of New York City’s Fifth Avenue during the 1920s. It was here that an iconic hotel set the stage for a revolutionary idea. Not content with providing exceptional accommodations alone, the hotel began offering its cooperative apartments, providing residents with a unique blend of world-class services and the cachet of a renowned brand. Little did they know that this pioneering venture would spark a transformation in the way we perceive and experience luxury living. From these early beginnings, the concept of branded residences has evolved into a global phenomenon.
With the advent of branded residences in India, the conventional realms of real estate have been elevated. These residential properties represent a fusion of opulence and identity, where the world’s most prestigious brands collaborate with developers to create exclusive living and quintessentially service-driven experiences. Branded residences represent an array of grandiose properties like a five-star hotel. Some features include personalised concierge services, 24-hour security, housekeeping services, in-house cinemas, golf simulators, wine storage, and private lounges. Further, some developers will collaborate with Michelin-starred restaurants and award-winning architects or interior designers to offer homebuyers world-class living experiences.
According to industry reports, the global supply of branded residences has seen a 230 per cent jump in the last decade, totalling over 580 developments worldwide, thus indicating a potential increase in demand in this sector. That said, the most active markets in the Asia Pacific region are expected to have a 72 per cent increase in branded residences by 2030. In India, with ultra-high-net-worth individuals (UHNIs) seeing an increase in their wealth over the last few years, we can expect increased interest in branded residences where buyers of such products seek association with brands, they are loyal to and can rely on for a premium experience.
While both branded residences and luxury homes represent a complete and bespoke lifestyle experience, branded residences are often regarded as a notch above due to their inherent branded elements. The properties are made in partnerships with renowned hospitality brands to ensure a seamless combination of plush living and the brand’s signature touch, enabling homebuyers to experience and access the same amenities and services available at luxury hotels. This integration translates into impeccable design, superior quality, and unmatched services and management, setting branded residences apart from conventional luxury homes. This in turn also caters to the consumer need where a luxury homeowner seeks value in intuitive service and the ability to have their needs taken care of before being asked.
Branded residences offer an array of enticing features meticulously crafted to ensure the utmost privacy and exclusivity for their elite clientele. From private elevators, pools, and ultra-luxurious spa facilities to gourmet kitchens and smart home automation systems, these residences cater to every desire of homebuyers. While branded residences continue to gain popularity amongst the elite, the standard of living continues to evolve beyond traditional five-star service. Amenities at these branded residences will include personalised butler services, concierge, luxury chauffeured car fleets, chefs on call, upscale and in-house shopping, all against coveted location backdrops and stunning views of the city.
Real estate remains a preferred choice among NRIs as an investment, with luxury homes seen as a lucrative return on investment. In the branded residences segment, buyer profiles primarily consist of NRIS, UHNIs, and HNIs looking to invest their wealth in the turnkey and experiential lifestyle these residences offer. Additionally, the involvement of Grade-A developers adds a layer of stability and credibility to the branded residence market. Consequently, buyers are not just purchasing a lavish lifestyle; they are investing in a property that is secure and appreciates over time.
Investing in a branded residence also brings with it bragging rights or the trophy status associated with having a globally recognised branded address along with the assurance of quality in design, construction, delivery, servicing, and amenities. While most of these homebuyers are international/global travellers, branded residences offer the option to “lock up and leave” while being at ease knowing that their residences are fully cared for in their absence. Some branded residences also offer the option for investment returns from a rental pool (notably in a resort context). Additionally, certain branded homes also offer the ability to exchange usage of their residences with similar properties located in other regions of the group’s network through loyalty programmes.
India is witnessing a significant rise in branded residences in metropolitan cities like Mumbai, Delhi, Bengaluru, and Chennai. The growing economy, start-up culture, increments in salaries, and evolving consumer preferences have fuelled the demand for branded residences. Moreover, emerging markets in Tier-II cities like Pune, Hyderabad, and Jaipur are also experiencing a surge in branded residential projects, offering a luxurious lifestyle to a broader segment of the population.
Branded residences have redefined the concept of luxury living, bringing five-star hotel living experiences to homes and ushering in a new era of lifestyle and identity – it’s as if you never have to check out of your hotel experience. As the real estate market continues to evolve, there will be a rapid expansion of branded residences across the country. Whether it’s the iconic skyline of Mumbai, Bengaluru’s bustling start-up ecosystem, the lush backdrop of Goa, or the cultural tapestry of Delhi, branded residences have left an indelible mark on India's real estate landscape. With a growing appetite for luxury living experiences, one can only anticipate further innovation and expansion in the realm of branded residences, offering discerning homeowners not just a place to live but a way to define their unique lifestyles. As the branded residences sector evolves, we will witness it diversify further. Currently, around 86 per cent of all schemes are hotel brands, but the strong growth and demand have already started to attract the attention of luxury automobiles, high-end fashion and jewellery, sought-after interior designers, architects, and landscape curators, and even celebrities who will associate themselves with developers to create branded homes and build real estate, mainstream models.