Global Branded Residences Report:
Market Trends in the Global Branded Residences Sector
Douglas Elliman and Knight Frank have released our Global Branded Residences Report. Here are the key takeaways:
• Wealth creation is expected to boost the global ultra-high-net-worth individuals (UHNWIs) sector, with a projected 28.5% increase between 2022 and 2027. The US and China will play a significant role, while other countries like Canada, Australia, India, Germany, and the UK also experience growth.
• Travel volumes are expected to recover, with hotel stays recovering steadily. Asia experiences slow progress, but global travel is forecasted to exceed pre-pandemic levels by 2027, with Asia dominating growth.
• Rising affluence, increased mobility, and wealthy investors' desire to expand residential property portfolios are driving future demand for second homes. The pandemic boosted demand from UHNWIs, with 15% considering purchases in 2023. Key hub markets (US, UK, Australia, Spain, and France) are preferred destinations.
• The luxury branded residence market spans 324 projects across 52 countries, with 186 live and operational developments and 138 in the pipeline. The sector is expected to grow by 12% annually up to 2026, with Saudi Arabia and Vietnam being the fastest-growing markets.
• The sector faces challenges such as potential conflict between purchaser and developer timescales, defining added value, and demonstrating sustainability commitment. Brands must articulate long-term commitment, and demonstrate clear evidence of sustainability.
• The survey highlights growth potential in Asia, Europe, the Middle East, and the Americas, with developers focusing on quality real estate, facilities, service, and design. As competition rises, developers with best-in-class offerings are expected to outperform.
To read the complete report, click this link: Global Branded Residences Report