MIDDLE EAST | As one of the fastest-growing sectors of the hospitality industry, branded residences have become a key driver for major chains.
Development and operation of branded residences has been at the forefront of the industry's focus, including value creation opportunities, the growing array of branding options available to developers, the emerging trend towards standalone branded communities, and the arrival of non-traditional players such as luxury automotive and fashion brands in the sector.
Sustainability strategies, legal structuring, design and sales and marketing case studies are also on the robust agenda, along with the exploration of sector-related topics including co-working concepts, the evolution of shared living and the rapid growth of private clubs as places to work.
According to Savills Residential Development Consultancy, the branded residences sector has grown by 160 per cent globally over the last decade. By the end of 2023, there were approximately 1,300 projects around the world, with hotel branded residences accounting for 82 percent of them.
Savills data also shows that the Middle East – which is rapidly emerging as a global hub for the sector – currently has 45,000 residential units in 200 branded developments across 80 brands. With a staggering 500 per cent increase in branded residences in the last decade – from 10 in 2014 to 50 in 2023 with another 50 in the pipeline – Dubai is the most active market worldwide and now rivals Miami, New York and London as a world leader in branded residential development. Saudi Arabia is also seeing significant growth, with a 65 percent surge in its branded development pipeline between 2022 and 2023.
Research by Global Branded Residences (GBR), a leading consultancy for the sector, shows that the United States, where branded residences first started, represents 36 percent of existing projects but only 18 percent of developments in the pipeline, highlighting the extent of global growth.
The Middle East and Africa currently account for 19 percent of the global residences existing and pipeline project network; Europe represents 16 percent; Asia Pacific 22 percent; and The Americas 43 percent. According to GBR, the world’s top locations for branded residences are Dubai, Miami, New York, London, Phuket, Sao Paolo, Los Cabos, Istanbul, Bangkok, and Cairo.
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