Once considered a niche within luxury real estate, branded residences have steadily gained momentum over the past decade and, in the last five years, firmly established themselves on the main stage. No longer a novelty, they are now a dominant force in global property markets, capturing the attention of both seasoned investors and first-time buyers looking to combine lifestyle with long-term value.

Over the past decade, Branded Residences have expanded 160%, with nearly 690 branded residential projects now operating worldwide and 617 more in the pipeline.

In the Asia-Pacific, growth has been particularly explosive. The region saw an 11% annual growth rate recently, and an additional 43,100 new branded units are expected from 2025 onward. This wave is led by markets like Thailand (currently 12,656 units across 55 projects) and Vietnam (over 11,000 upcoming units), riding a surge in high-end developments.

Even traditionally mature luxury markets are breaking records. Dubai, for instance, has cemented itself as a world capital for branded residences. In 2024 alone, over 13,000 branded homes were sold there – a 43% jump from the previous year, totalling $16.3 billion in transactions. This represents about 8.5% of Dubai’s entire real estate market value and showcases an intense appetite for branded luxury living. Such unparalleled growth signals that branded residences are not a fad but a global trend, reshaping luxury real estate from Miami to Phuket.

But what makes branded residences the next big thing in real estate? Do they offer genuine investment potential, or are buyers merely chasing prestigious logos over sound logic? What hidden challenges should investors anticipate, and which less obvious benefits can deliver maximum ROI? We unpack all these questions and more:

With so much rapid growth, is now a good time to invest, or has the market peaked?

For first-time investors, the global pipeline of projects and sustained demand indicate there’s still room for smart investment. The sector’s expansion into emerging markets (from Asia to Latin America) means opportunities are far from saturated, especially if you focus on high-growth regions and prime locations where demand continues to outstrip supply. The key is to target markets with strong fundamentals (e.g., economic growth, limited luxury supply) so you can ride this growth wave rather than risking an overheated locale.

Profits with Prestige: Strong Returns and Stability

Branded residences don’t just offer glamour; they provide long-term protection of value through brand stewardship. While these properties often sell at a 20–35% premium over comparable non-branded homes, that higher entry price secures more than a logo on the façade. It buys into a trusted brand that safeguards the asset, ensures consistent quality, delivers elevated services, and protects the project’s prestige over time. For buyers, this means peace of mind: the residence you purchase is professionally managed, well-maintained, and part of a globally recognized ecosystem that helps preserve both lifestyle experience and resale appeal.

Are these higher returns and prices really sustainable, or am I paying for hype?

It’s wise to be sceptical, but the track record suggests the premium is justified by performance. You’re paying for a proven formula: branded developments often sell out faster and resell at higher prices because wealthy buyers worldwide trust the product. Moreover, brands add professional management and global marketing, which support rental demand and maintenance of the property’s condition.

While no investment is immune to cycles, owning a branded residence aligns you with a top-tier asset that historically weathers storms better than most, provided you invest in a quality project by a reputable brand in a prime location, the returns tend to reflect the exclusivity.

The Brand Advantage: Why Buyers (and Renters) Love It

What makes branded residences so sought-after? The answer lies in brand loyalty and the lifestyle promise these properties offer. Many buyers are drawn to names they know and trust from five-star hotels, fashion, or automotive brands. In fact, 75% of branded residence buyers purchase after first experiencing the brand as hotel guests.

“Buyers are no longer simply investing in property; they’re investing in a brand experience that offers consistency, exclusivity, and a lifestyle that reflects their success.” Vincent Miccolis, Managing Director at The Ascott Limited

If I’m new to these brands or this concept, how do I know which brand will appeal most and hold value?

Start by considering your own positive brand experiences. If you’ve had exceptional stays or service with a hotel or luxury brand, that’s a clue to how they’ll run a residence. However, even if you haven’t patronized a particular brand, research its reputation among global elites. Do they have a loyal following? Brands like Four Seasons, Aman, Raffles, or Ritz-Carlton come with built-in trust from affluent communities, which can translate into enduring demand for their residences. For your investment, this means choosing a brand known for excellence and consistent delivery. Remember that you’re not just buying a home, you’re buying into a worldwide network of brand enthusiasts. A strong brand will attract buyers and renters for years to come, giving you confidence that your property’s appeal won’t fade as trends change.

Managing the Investment: Operations, Risks, and Future Trends

One big advantage for first-time investors in branded residences is the operational support that comes with the purchase. However, it’s important to go in with eyes open about the costs and commitments involved.

First, branded residences usually entail management fees that cover all those white-glove services. These fees range from roughly 1-2% % of the property’s value per year, which on a $5 million residence can be significant (around $100k annually). High service standards ensure your property stays in top condition – preserving value – but they do trim some profit off rental income.

Second, investors must be mindful of brand integrity over the long term. The brand name adds value only as long as the operator maintains its luxury standards. Any dilution of the brand or service quality could affect your asset. Still, due diligence is key: partner with brands that have a strong track record in residences and stay involved through owners’ committees to ensure the operator delivers on promises.

Another consideration is liquidity. Branded residences, especially at the ultra-luxury end, target a niche of wealthy buyers. When you eventually want to sell, the pool of potential purchasers can be smaller than for, say, a conventional city apartment. It might take longer to find the right buyer who appreciates the brand (and can afford the premium). That said, the flip side is that the marketing power of the brand often attracts buyers globally, sometimes making sales faster for well-located projects. As an investor, plan your exit strategy: choose markets with active high-end buyer interest and be prepared that selling a $10 million branded penthouse could require patience to achieve your desired price.

How can I manage the risks and stay ahead of trends as a new investor in this sector?

Embrace the trends: if sustainability or new tech features are in demand, consider investing in upgrades to your unit or supporting building-wide improvements. Staying ahead of what buyers want – be it an EV charging station or a wellness room – will protect your investment’s value. In short, partner with a great brand, be an active yet not overbearing owner, and ensure your property evolves with the market. This way, you’ll enjoy the lifestyle and the returns with confidence.

“Today’s marketplace is increasingly competitive, with buyers seeking very thoughtful and considered homeownership opportunities. Success certainly requires that we bring our brands to life through an elevated service offering, architecture and design, but it is equally important to tailor services, amenities and concepts to the precise needs of targeted buyers”, said Jeff Tisdall, Chief Business Officer, Accor One Living.

Tapping Into a World of Luxury and Growth

Branded residences present a compelling proposition for first-time investors looking to diversify into high-end real estate. As the global market continues to expand, from Asia’s resort hotspots to the Middle East’s city skylines, first-time investors have a chance to ride this growth curve.

The conversations around branded residences and the broader hospitality investment landscape will continue at the Branded Residences Forum at FHS World 2025 in Dubai (27–29 October). This is where industry leaders and investors will gather to explore the next phase of growth in branded residences, the opportunities ahead, and how to capitalize on them.