Branded Residences, in Spain, is experiencing a remarkable boom since 2017, with projected growth in the coming years, especially in Madrid, Barcelona and the Canary Islands. It will all be driven by an increase in demand for luxury properties, foreign investment in property and the country’s strong tourism industry.
What are Branded Residences?
Branded Residences are defined as a hybrid of prime residences and luxury hotels. These residences, managed by large hotel operators specialising in the luxury segment, are here to stay and continue to expand.
Is it a new concept?
Branded Residences have been around for quite some time, however, they are experiencing exponential growth in the globalised market. Branded residences have been around since 1927 thanks to the Sherry-Netherland Hotel in New York, but did not take off until the 1980s. The creation of these real estate projects is due to the collaboration between the real estate developer and the hotel operator. These two work together to develop a product with characteristics similar to those of a conventional private home. These residences offer the added value of design and many of the services that the client of a luxury hotel enjoys. Therefore, they transmit their culture of service, the quality of food and beverage, cleanliness and all those services that they already have.
Branded Residences in Spain
The Branded Residences market in Spain is booming and will grow exponentially in the coming years. They are a relatively new real estate product in our country, as the first project was inaugurated in 2017. This type of real estate development involves a continuous collaboration between the developer and the hotel operator or brand. It is expected that more and more hotel and non-hotel groups will join this market, offering unique and personalised experiences. The future of these residences in our country is promising, especially for Madrid, Barcelona and the Canary Islands. These communities will concentrate the supply for the projects planned for the next 4 years.
The impulse in Spain is fundamentally motivated by three factors:
-A notorious increase in demand for luxury properties, which in 2022 grew by 45% over the previous year.
-The increase in foreign investment in real estate in our country, which in 2022 increased by 59% compared to 2019.
-The solid fundamentals of the tourism sector, which place Spain as a global leader, maintaining excellent growth forecasts.
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