Branded Residences. What is the phenomenon of this trend?

The so-called Branded Residences are projects created by developers in cooperation with world-famous, luxury brands. In recent years, the trend of properties signed by high-class fashion, automotive or jewellery companies has been strengthening on the Costa del Sol. More and more of the best, recognised brands want to follow in the footsteps of Fendi Casa, Karl Lagerfeld, Versace, Elie Saab, Dolce Gabbana or Lamborghini and decide to brand the estate or buildings with their name. In recent years, their number on the Iberian Peninsula, especially in Marbella and the surrounding area, has increased significantly. Many are also under construction or at an earlier stage of investment preparation. 

Some companies, in cooperation with developers, include additional services and amenities, such as a concierge. Others only define the style or architectural design signed with the famous logo. 

Brand loyalty drives purchases

According to Knight Frank’s “Branded Residences Report,” buyers of such apartments or houses are typically willing to pay 25 to 35 percent more for them compared to a “non-branded” property. The services and amenities offered are the main reasons for buying a branded residence, while high investment profit potential, maintenance and management, the identity of a well-known logo and options such as smart property management are also important.

Buyers are attracted not only by the prestige associated with elite brands, but also by loyalty to a specific company. Fans of fashion, motoring and high level of service decide on such a solution because a famous brand is associated with durability. It provides status and a specific lifestyle. All such development projects advertise impeccable service, which is especially important for buyers of premium properties. 

Triple benefit: brand, developer and buyer

Branded residences offer a triple profit: for the brand, developer and owner. The brand providing its branding benefits from visibility and greater prestige, for the developer the greatest benefit is higher prices of sold premises, and buyers can profit from investments with a higher value in the event of resale. They can also benefit from lucrative rental rates or greater prestige resulting from living in a unique apartment or house. In many cases, belonging to a brand offers owners a number of benefits, in particular the provision of top-class services and an exceptional range of amenities. Buyers also recognize that Branded Residences provide a sense of security and value, and are eager to choose renowned premium residential destinations, especially those that offer a wide range of properties and allow you to experience the thrill of being at the center of luxury living.