Mar 14, 2025 | Accommodation Trends
Image credit: www.royist.com/real-estate/armani-residences-downtown-dubai/
The shift in consumer demand towards standalone Branded Residences managed by luxury brands reflects a growing preference for exclusivity and privacy. Noteworthy is the participation of not only hotel brands like Four Seasons and Ritz-Carlton but also Automotive and Fashion brands such as Mercedes-Benz, Porsche, Giorgio Armani, and Baccarat in locations like Dubai and Miami (C9 Hotel works Market Research).Buyers, as highlighted by Michelle Galli, Chief Executive of Design Studio, The One Atelier, seek a fully immersive branded lifestyle and the perks of exclusive club membership. The reputation, prestige, luxury hotel services, long term value and signature design are other motivating factors for buyers (Tajara Hospitality).
Branded residences in Asia represent a lucrative sector valued at USD 26.6 Billion, encompassing 68,001 units. Thailand leads with a 23.3% market share, followed by the Philippines (17.3%) and South Korea (11.6%). Emerging markets like Vietnam, Malaysia, and India collectively hold 24.5% of the total market share (C9 Hotel works Market Research).
In terms of prices, Singapore leads the region with US$ 23,026 per sq.m followed by Japan US$ 20,827per sq.m and Sri Lanka commands mere USD 6,640 per sq.m (BT Lifestyle).
Key drivers behind this trend include geopolitical factors, lifestyle preferences, educational opportunities, urban flight, retirement trends, and investment motives (C9 Hotel works Market Research).Factors like global migration patterns, JOMO (joy of missing out), presence of international schools, and remote work setups further fuel the demand for Branded Residences (BT Lifestyle).
The potential to attract international buyers presents a significant opportunity for all stakeholders involved. Customers benefit from trusted brands, luxury brands enjoy brand extensions, additional revenue streams, and licensing fee of 6-10% for each unit sale while developers and investors gain global visibility, premium pricing, and brand association.
Sri Lanka stands to benefit by leveraging this trend to boost the real estate sector, attract luxury brands and private investments, and create employment opportunities, contingent on facilitating foreign real estate purchases akin to Japan and Thailand.