The branded residences market enjoys sustained growth despite the recent and significant economic turmoil, as shown by the most recent data collected by Knight Frank, with which Quintela + Penalva has been associated since 2021.
The Knight Frank Global Branded Residences Report 2023 took into account the portfolios of 15 leading luxury operators in the branded residences segment (residential property or residential tourism associated with a brand).
The report identified 186 active projects worldwide, with 32 scheduled for completion in 2023 – 23 of which will be operational in 2024, 26 in 2025, and 22 in 2026. Additionally, 35 projects are still in the preparation phase, with no confirmed launch date. Ultimately, the number of new projects with known opening dates represents an annual growth rate of 12% until 2026 – resulting in a total growth of 55% by 2026.
North America accounts for almost 40% of all projects, followed by the Asia-Pacific region (20%) and Europe (13%). The projects are located in 52 countries, with the US taking the spotlight (106) – the UAE, Thailand, UK, and China also feature double-digit project numbers. Taking a closer look, Florida leads in the US compared to all other states (with 80% of Florida’s projects located in Miami).
In terms of growth markets, 60% of the Middle East market is currently under development. Europe and Latin America follow with 49% and 46% respectively. In absolute terms, the largest projects under development are in the US (36 known projects), the United Arab Emirates (7), Mexico (7), the United Kingdom (5), and Saudi Arabia (4).
As far as brands are concerned, the Ritz-Carlton leads with the highest number of projects, followed by the Four Seasons group. In terms of growth rate, Aman and Six Senses lead at 68% and 67% respectively, with much of the total portfolio currently in the development phase. Knight Frank’s research confirms that this growth in supply will be matched by demand.
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