Why Branded Residences Are the Future of Luxury Real Estate

Discover why branded residences—from Thompson and Armani to Ritz‑Carlton and St. Regis—are skyrocketing globally. Explore demand surges, price premiums, and how Mexico is entering this era with standout developments.

Isabella F.

9/3/20252 min read

The Armani residences in Mexico City
The Armani residences in Mexico City

1. Global Boom in Branded Residences

2. Premium Pricing & Investment Upside

  • Branded residences command a consistent price premium—on average 30% higher than non-branded, and up to 102% in places like Dubai The Times

  • In markets like Dubai, branded projects enjoy premiums of 10–20% over already pricey non-branded alternatives. BRESI. Luxury Branded Residences.

  • In major global cities, service charges can be as high as £35 per sq ft per year—a cost buyers accept as part of the exclusivity package. Financial Times.

  • Long-term performance is strong: hotel-branded residences outperformed their broader markets by up to 10% over a five-year hold. Financial Times.

3. Why Buyers Choose Branded Homes

  • Buyers value brand trust, service consistency, and upscale lifestyle environments. Many affluent individuals own multiple branded homes globally. Gensler

  • It’s no longer just about owning property—it’s about access to a club-like exclusive experience. El Pais

  • Developers also benefit: branded residences offer diversified revenue streams, with more stable income due to sales and management contracts. CoStar

4. Leading Global Examples & Emerging Markets

  • Global hotspots include Miami, Dubai, Europe, and increasingly Asia-Pacific—growth in this region reached 230% over the past decade, with Vietnam up 210%. Achieve Real.

  • Notable brand entries: Aston Martin sky villa (UAE), Fendi residences in Switzerland, SLS Madrid Infantas by Ennismore. JamesEdition.

  • Luxury expansions noted in Madrid, where ultraluxury resale prices reached €27,500/m², with branded developers like Four Seasons and Mandarin Oriental active. Cinco Días+1.

  • New branded developments continue emerging globally—from private islands to Mandarin Oriental in London’s Bankside. Financial Times.

5. Mexico Enters the Branded Residences Era

  • Mexico ranks among the top global markets for branded residences outside the U.S., alongside the UAE and Indonesia. The Riviera Maya region particularly stands out. Yucatán Magazine+1.

  • In 2024, branded-residence projects increased 15% in Mexico, now one of North America's largest second-home markets. CoStar.

  • The Riviera Maya ranks 8th worldwide in branded residences (completed and pipeline); Los Cabos is 9th. BRESI.

  • Noteworthy Mexican projects:

    • Armani Residences Masaryk (Polanco, Mexico City) offers 57 exclusive units with Armani/Casa interiors, a Residents Club, sky pool, wellness center, and panoramic city views. Armani Residences

    • The St. Regis Residences, Costa Mujeres are setting price records and anchoring Marriott's growth in Latin America. BRESI.

    • Ritz‑Carlton Residences Mexico City, atop the Chapultepec Uno tower on Paseo de la Reforma, include 64 private homes (floors 48–55) with VIP-style services, VIP lobbies, in-residence dining, heliport, and sweeping views of Chapultepec Park. Ritz Mexico City

    • Thompson Hotel & Residences Mexico City, located on Reforma, blends bold design by Arquitectonica and interiors by Piero Lissoni—offering artful, service-driven living in the heart of the city. relatedgroup.com.

    • The St. Regis Mexico City (Freedom Tower) includes mixed-use hotel and residences on Reforma and stands as the first St. Regis property in Latin America. en.wikipedia.org.

The building of mandarin oriental residences in Miami
The building of mandarin oriental residences in Miami
St Regis Residences Sunny Isles
St Regis Residences Sunny Isles
Mandarin oriental residences in Miami living room
Mandarin oriental residences in Miami living room
Armani residences in dubai
Armani residences in dubai
Ritz carlton residences in Mexico City
Ritz carlton residences in Mexico City