What are branded residences? 

Branded residences are luxury homes developed and marketed in collaboration with renowned brands from sectors like hospitality, fashion, or automotives. This concept has gained popularity as it allows buyers to associate with a prestigious label while enjoying the comforts of a private home.

The idea originated in 1927 in New York with the Sherry Netherland Hotel (above) but really gained traction in the early 2000s when luxury hotel chains expanded their offerings beyond traditional accommodations. By partnering with real estate developers, these brands used their reputation and expertise to create exclusive living experiences.

Branded residences typically offer higher levels of service, amenities, and attention to detail compared to traditional luxury properties, catering to affluent buyers' tastes.

According to data from leading branded residences consultancy, Global Branded Residences (GBR), the sector has grown by 176% in the past 10 years (2014-2024) with 714 projects open and operating globally today. “Perhaps even more astonishingly, that number is set to almost double in just the next 7 years, with a further 659 projects having been signed and announced to be delivered around the world” says Riyan Itani, founder of GBR, “The branded residences sector is seeing a period of unprecedented growth globally”.

The appeal of branded residences

For international buyers, branded residences offer quality assurance, an exclusive lifestyle, and potential long-term investment value, as well as qualified property management when not in residence. Branded residences often offer personalised services like concierge assistance, housekeeping, and private dining and rental management, along with amenities such as spa facilities, fitness centres, and private clubs. This high level of service attracts those seeking a curated luxurious living experience.

The association with a prestigious brand enhances the sense of exclusivity and status for owners, while also providing the security and privacy sought by high-net-worth individuals.

“The increasing concentration of wealth and the global expansion of the ultra high net worth individual (UHNWI) segment create a favourable environment for the development and growth of the branded residences market,” says Luis Valdés, Managing Director in Residential Sales Advisory at Colliers.

Major branded residences to know about in Spain

Spain has become a prime destination for branded residences, with prominent hotel and lifestyle brands establishing a presence there. Notable projects include Tierra Viva on the Costa del Sol, a collaboration between DarGlobal and Lamborghini, and Wyndham Grand La Cala Golf Residences. Other leading brands in Spain include Four Seasons, Mandarin Oriental, Marriott, Accor, and fashion labels like Fendi Casa, Missoni, Karl Lagerfeld and Dolce & Gabbana.

“Malaga has all the ingredients to become one of the main centres of attraction for investors and the next port of call for branded residences in Spain” comments Luis Valdés, Managing Director in Residential Sales Advisory at Colliers.

Popular locations in Spain for branded residences

Currently, the Canary Islands, Madrid, and Barcelona host the majority of Spain's branded residences, with 278 operational units. However, the Costa del Sol is expected to remain the focal point for future developments. These areas offer a blend of luxury, culture, and natural beauty, making them attractive to international buyers seeking a premium lifestyle and investment opportunities.

Choosing a branded residence

Not all branded residences are created equal. The quality of such projects largely depends on the developer behind them, and buyers are advised to conduct thorough due diligence before investing.

Carlos Rodriguez, CEO of Marbella-based Sierra Blanca Estates Developments, oversees notable projects like Epic Marbella by Fendi Casa, Karl Lagerfeld Villas Marbella, and Marbella Design Hills, developed in partnership with Dolce & Gabbana. "Buyers should be very mindful of the developer's track record," Rodriguez cautions.

"It's essential to ensure that both the development's quality and the service offered by the developer meet high standards. The service must be impeccable, not just regarding the amenities but throughout the entire purchase process and after-sales service. It's the intangibles, such as the brand experiences, that matter.”

“Not all projects are 5-star, and not all locations are 5-star," he warns. "Not only does the project have to respect the DNA of the brand but it has to fit the DNA of the location.”

How to buy a branded residence

Purchasing a branded residence in Spain involves several steps, including legal due diligence, financing arrangements, and the involvement of real estate agents and legal advisors. Buyers should be aware of the specific legal considerations, ownership structures, and tax implications, which can vary by location and brand.

Financial considerations of buying a branded residence

Branded residences in Spain, particularly in prime locations like the Costa del Sol, command significantly higher prices compared to other luxury real estate markets, with some projects reaching up to €30,000 per square meter.

Branded residences in Spain are generally priced at a premium compared to traditional luxury properties, with buyers often paying 25% to 35% more for the added value and exclusivity.

Financing options for international buyers include mortgage loans, cash purchases, or alternative investment structures like fractional ownership. Buyers should also consider the taxes and fees associated with property transactions in Spain.

However, “it's not just about the average 25% price premium branded residences command,” says James Lavelle, Real Estate Director IDILIQ Group the company behind the branded residences project called Wyndham Grand La Cala Golf Residences, situated on the Costa del Sol, ”but also the speed at which they sell, offering significant capital appreciation for owners.

“With recognised global brands come vast global networks, for example, Wyndham has 100 million rewards members, meaning that there is always a substantial audience, who are already engaged with the brand and eager to invest in these prestigious properties that offer the brand standards, and array of hotel services which a hotel branded residences can offer.”

Branded residences future trends

The branded residences market in Spain is expected to grow, with the number of projects set to more than triple over the next four years. This growth is driven by increasing demand for luxury living experiences, a surge in foreign investment in Spanish real estate, and the strong performance of the country's tourism sector.

Riyan Itani of GBR notes that “Spain has come from a relatively low base of branded projects, but our data shows that it will be challenging the likes of the UK and Portugal to take the top spot for branded residences in Europe in the coming years.”

Branded residences in Spain offer international buyers a unique opportunity to invest in luxury properties backed by prestigious brands, ensuring high quality, service, and exclusivity. With a growing number of projects and strong demand from affluent buyers, this segment of the Spanish real estate market is poised for continued growth and innovation.

Globally, branded residences are expected to grow by 92% by 2030, driven by demand for luxury, service-oriented living, particularly in emerging markets like the Middle East, Latin America and Asia, according to data from Global Branded Residences.