Branded Residences: Future of Luxury Real Estate

The premium real estate market is undergoing one of the most important transformations in its history. Investors from around the world are no longer simply looking for “expensive apartments”. They are seeking assets that combine capital security with five-star lifestyle. The answer to these needs is Branded Residences – a segment projected to grow by 100% by 2030. The largest markets are Dubai, Miami, London, but Southern Europe – including the Costa del Sol – is currently experiencing the most dynamic growth. What exactly are they, why are they achieving record returns, and why is the Costa del Sol becoming their European capital?

At Globihome we constantly analyze global trends to provide our readers, clients and business partners with knowledge that stays ahead of the market. In this article we will look at the phenomenon of Branded Residences – from definition, through hard data, to flagship projects.

What are Branded Residences?

Many real estate agents and investors mistakenly equate Branded Residences with hotel rooms in a condo scheme. That is a fundamental error. Branded Residences are full-ownership properties, designed, finished and managed according to the rigorous standards of global hotel brands (such as Marriott, Four Seasons, St. Regis) or lifestyle brands (such as Armani, Porsche and Bulgari).

The key difference lies in the ownership and management model:

• The owner owns the apartment or villa outright (freehold), with the right to use it freely, stay in it without time limits, or resell it.
• The brand (e.g. St. Regis) is not just a “marketing sticker” here. Its role is quality control, ensuring aesthetic consistency and – most importantly – operational management of the property for decades.

This means that when you buy a Branded Residence, you are not just buying square meters. You are buying a property operating model in which the standard of service, maintenance and security is guaranteed by a global corporation, and does not depend on the arbitrary decisions of a local homeowners' association.

For the investor this is a key shift: The property does not age morally and technically as quickly as classic apartments, because the brand looks after its reputation long-term.

Why is the Branded Residences market growing so dynamically – hard data

The numbers are merciless for skeptics and extremely promising for investors. This segment is not a passing fad, but a lasting trend based on a generational shift in the approach to luxury.

Key statistics according to Savills and Knight Frank:

• Year 2010: In the world there were only about 200 projects of Branded Residences.
• Year 2024: That number grew to 690 projects, and the market value exceeded 40 billion USD.
• Forecast 2030: It is estimated that the number of projects will double, exceeding 1,300 developments worldwide.
• The largest markets are Dubai, Miami, London, Costa del Sol.

This is one of the fastest-growing segments of the luxury real estate market, outpacing the growth rate of the traditional residential market in top locations.

Geographical distribution of the market:

Traditionally this market was dominated by the United States and Asia. However, the center of gravity is now shifting. Southern Europe, and in particular Spain's Costa del Sol, is experiencing the most dynamic growth. Investors from the USA, the Middle East, and increasingly from Poland, Germany and Scandinavia, are looking here for so-called "safe haven assets" – a safe haven for capital.

How much more do Branded Residences cost?

One of the most important indicators for investors is the price premium – the price difference between a branded property and a comparable non-affiliated asset.

The global average premium according to Savills is 33%, with:

• Resort properties: premium 39%
• Global cities (gateway cities): premium 27-30%
• Emerging markets: premium even 45-47% (in Dubai up to 90%)

Why Branded Residences Beat Luxury Villas? (ROI and Psychology)

Why do HNWI (High-Net-Worth Individuals) decide to pay a price premium of around 20-40% compared to classic properties? The answer lies in a combination of psychology, convenience and hard economics.

1. Price Premium and Higher ROI

Branded properties fetch significantly higher prices both on the primary and secondary market. This comes from trust – the buyer knows what to expect from the standards of Ritz-Carlton or St. Regis, whether it's in Miami, Dubai or Spain.

• Rental: These apartments generate on average 15-20% higher short-term rental revenues compared to luxury apartments without a brand.
• Resale: On the secondary market the premium persists at +20-40%, and liquidity is higher thanks to global recognition.

2. Hassle-free Ownership

For today's investor, who owns assets in several countries, the greatest luxury is time. A classic villa requires hiring a gardener, cleaners, security and constant supervision. In the Branded Residences model the owner receives full 5-star hotel service in their own home.

• Concierge,
• Room service,
• Wellness and SPA,
• 24/7 Security.

This is not a "hotel" where you are a guest. It is your own property, but with a service that takes the burden of management off you.

3. Limited Supply (Scarcity)

True luxury must be unique. Branded Residences projects are limited – typically from 40 to 150 units. They are never repeated, built on unique plots. This physical supply constraint makes them assets resistant to market oversupply.

Case Study: The St. Regis Residences, Casares – The Pearl of the Costa del Sol

To understand this phenomenon, it is best to look at a concrete example that is redefining the market in Spain. We are talking about the project The St. Regis Residences in Casares on the Costa del Sol. It is a venture that many experts consider a "flagship project" in Europe.

Location and Concept

The investment is located within the prestigious Finca Cortesin Resort – a place known for one of the best golf courses in the world and the upcoming longevity center Lanserhof Longevity Center. It is a combination of absolute privacy with access to world-class infrastructure.

Architecture and Design

The project is designed by world-renowned figures in design:

• Marcio Kogan (Studio MK27) – Brazilian architect, an icon of modernism, responsible for the buildings' forms.
• Lázaro Rosa-Violán – an interior master who gave the residences a unique character.
• Isabel Duprat – responsible for landscape architecture.

Project Specifications of The St. Regis Residences

• 46 luxury residences with sizes up to 780 m²
• Choice of layouts: 2-4 bedrooms – penthouse, duplex or apartment with garden and pool
• Finca Cortesín Resort: a championship golf course, restaurants (including Michelin), spa, Beach Club
• Planned: Lanserhof Longevity Center – a preventive medicine center
• Prices from 2 390 000 EUR – the highest standard of service of the St. Regis brand (Marriott International).

Why The St. Regis Residences are a Brilliant Investment?

St. Regis on the Costa del Sol promotes the concept of luxury without a tie. It's elegance that doesn't shout but envelops you in quality. Owners have access to all St. Regis hotel services, including the famous butler service (Butler Service), while enjoying the privacy provided by sizes from 150 to 500 m².

This is not another developer project. This is a trophy asset. As market data shows, projects of this class (like Bulgari in Dubai) can sell out in weeks, and their value can increase by up to 45% within 3 years. St. Regis in Casares follows the same mechanism – it combines a unique brand with an incomparable location that cannot be copied.

Costa del Sol: Why Branded Residences Here?

Spain, and particularly the Costa del Sol, is not a random choice for brands like St. Regis, Four Seasons or Mandarin Oriental. This region offers a unique mix of features sought by long-term investors:

1. Legal Security: We operate within the European Union, which guarantees the stability of property law, unlike many exotic markets.
2. Year-Round Infrastructure: The Costa del Sol is not a seasonal resort. It is a region that lives 12 months a year, with international schools, excellent medical care and Málaga airport serving connections to the whole world.
3. The "Second Home" Culture: This region has for decades attracted capital from the UK, Scandinavia, Germany, and more recently increasingly from the USA and Poland. It is a mature and diversified market, not dependent on a single nationality.

Buyer Profile: Who Buys Branded Residences?

According to Knight Frank Wealth Report, 60% of buyers in 2024 had a net worth above USD 10 mln.

The typical buyer is:

• Entrepreneur or Investor HNWI (High-Net-Worth Individuals) and UHNWI (Ultra-High-Net-Worth Individuals) with capital EUR 5-50 mln.
• A mobile person, dividing their time between 2-3 countries.
• A client looking for asset diversification and protection of capital from inflation.
• Families thinking about intergenerational investing – buying a property that will stay in the family for years, not be sold in 5 years.

Summary: Is it worth entering this market?

Branded Residences are more than a trend – they are an evolution of the real estate market toward a service model. For investors they are a "Trophy Asset", which combines prestige, security and passive income. For agents it's a chance to work on the most exciting projects in the world.

Key takeaways:

• Price premium 30-40% translates into higher returns on resale and rental
• Limited supply protects against the risk of oversupply
• Professional management eliminates operational issues
• Costa del Sol records the most dynamic growth in Europe
• Horizon 7-10+ years brings the best results

The Knight Frank 2024 report describes this segment as "the most dynamic segment of the luxury market" with growth potential of 150% by the end of the decade. Looking at the success of projects like St. Regis on the Costa del Sol, it's hard to disagree. It's a logical, consistent, and—most importantly—profitable direction.