We have just started 2023, it was reported in the press that a person bought the most expensive house in the history of Barcelona for 40 million euros. It was a 650 square meter duplex penthouse on the 20th floor of the building located at the junction of Paseo de Gràcia and Avenida Diagonal. Not a traditional residence, but a ‘branded housing‘ (branded residences)a newly coined term to attract international buyer.
Homes promoted under the design and service parameters of a major hotel chain, Usually luxury like the Four Seasons or Six SensesMoreover Fashion brands like Karl Lagerfield or Dolce & GabbanaParticipants in the construction of luxury villas in Marbella. The apartment, which sold for 61,000 euros per square meter, a national record in Barcelona, is an example of these “branded residences” in which the buyer has and has the seal of a large hotel group in North America, such as Mandarin Oriental. access to hotel servicessports and wellness area, large lounge-library, private meeting rooms, relaxation areas, swimming pool and panoramic roof garden. Everything is managed by 20 Mandarin employees.
an existing phenomenon.
The concept of buying an apartment and transferring its management to a hotel chain is not new in Spain. about an investment method like this rent someone’s living place but without due attention. For example, Spanish Meliá owns an apartment complex in the center of Madrid in the hands of private investors.
However, these branded residences target a segment of the population with a higher purchasing power. “The luxury residential, ultra-luxury and branded products segment is gaining weight in the Spanish market. good locations and a project that makes a difference; serviced apartments, which are houses with a wide variety of amenities and rooms; and branded residences affiliated with this company. The proposed proposal aims to innovate in the housing market. luxury homesinnovative common areas and hotel services are included in the pay-as-you-go rate” sums up the Branded & Luxury team of real estate consultancy CBRE.
One of the first projects to enter Spain with these features was at the Canalejas Center in Madrid. In addition to a luxury commercial gallery, the owners of the project, including 22 private residences They share a brand with the Four Seasons hotel and were designed by Luis Bustamante decoration and interior design studio.
Brand houses on the beach
In addition to Madrid and Barcelona, the Balearic Islands and Costa del Sol are expansion areas for this market. Marbella developer Sierra Blanca is one of the most active. The fashion studio is building five luxury villas designed by Karl Lagerfield. selling prices around 15 million euros. The same company has another project, albeit with its luxury brand Dolce & Gabbana, with 60 chalets and a shopping and restaurant complex in the same location.
In this municipality in the province of Málaga, two more projects are being built: W Marbella with 40 apartments next to a luxury hotel of the same name, and the Four Seasons Marbella, located in the old part of the city and with the services of the municipality. hotel complex where the chain started.
Inside Ibiza can also be found this type of housing. When construction is complete, the Six Senses and Four Season chains will have two ‘branded residence’ complexes that will form part of their luxury hotels on the island.
Who buys branded homes?
According to CBRE, such products are designed for the international community, Europeans and Latin Americans who see Spain as a very attractive market. “Demand for luxury housing is much less price sensitive than for traditional housing,” experts add. Buyers are willing to pay a price premium because they “identify themselves with a brand.” and enjoy the same perceived quality of that brand or design.”
The international consultant believes that “in a European and international context, Spain is becoming increasingly attractive, competitive and unique compared to similar cities such as Paris, London or Milan”. “The broad cultural and entertainment offer combined with the excellent gastronomic experience are the determining factors for the promotion of this segment. Trademark products and hotel services attract buyers who previously only sought markets such as Dubai, Miami, New York or London,” concludes CBRE.