The EMEA region stands out as a dynamic and growing hub for branded residences, accounting for nearly 30% of the global supply. The Middle East, in particular, shines with 12% of the worldwide offerings, and the growth projections are the most robust globally, with an expected increase of 120% by 2030. This indicates a burgeoning interest and investment in branded properties, which combine the luxury and service standards of top brands with residential living.
As of mid-2023, there are over 190 completed branded residence schemes in the EMEA region, with an additional 240 slated for completion by 2030. This significant growth, which represents a 160% increase over the past decade, underscores the expanding appeal of these properties across varied markets within Europe, the Middle East, and Africa.
Leading the charge in the hotel-branded sector are established names like Four Seasons and The Address, each with more than ten operational schemes. By 2030, these brands, along with Fairmont, are expected to each count 20 or more completed projects across the region. This expansion reflects a growing trend toward luxury living solutions that offer more than just a place to live but a lifestyle that resonates with affluent buyers.
In the realm of non-hotel brands, the YOO brand, inspired by Philippe Starck and YOO Studio, currently leads with the most completed schemes. However, by the end of this decade, Elie Saab is anticipated to dramatically increase its presence, rivaling YOO Studio for the number of schemes. This demonstrates the market's receptiveness to fashion and design brands translating their aesthetic visions into living spaces.
Marriott and Emaar are currently the most prolific developers in terms of completed branded residences across the EMEA region. Yet, looking forward, Accor is set to take the lead with an anticipated 62 completed projects by 2030, marking an impressive growth of over 350%. This shift highlights the competitive nature of the market and the continuous innovation and investment by major players.
The appeal of branded residences extends beyond their luxurious amenities. In Europe's established markets, these properties are often seen as trophy assets, coveted additions to property portfolios, particularly among the global high-net-worth population. In emerging markets, these residences offer a compelling alternative to traditional luxury properties by providing higher quality, enhanced security, and a strong sense of community.
Increasingly, branded residences are not just urban phenomena but are also found in resort locations across the EMEA region, appealing especially in coastal and alpine destinations. These properties cater to a lifestyle that combines leisure and luxury, attracting second-home buyers and primary residents alike.
Dubai exemplifies the success of this model, hosting 51 operational branded residence schemes with expectations to nearly double this number by 2030. This city's market exemplifies how branded residences can thrive in a region that values distinctiveness, luxury, and comprehensive service.
Regarding investment potential, branded residences generally command a premium due to their association with luxury brands known for quality and exclusivity. Globally, this premium averages 30%, but it can be significantly higher in the Middle East and Africa, where some schemes see premiums exceeding 40%. This premium pricing is reflective of the added value these properties offer in terms of security, amenities, and overall quality of life.
Looking forward, the outlook for branded residences remains positive, with significant growth expected in emerging cities across the EMEA region. Cities like Cairo, Limassol, and Muscat are poised to see substantial development, reflecting a broader trend of diversification in the types and locations of branded residences available. This growth speaks to the enduring appeal of these properties, which offer not only a luxurious abode but a comprehensive lifestyle package that resonates with affluent consumers globally.
As the market for branded residences continues to diversify and expand, it promises to remain a vibrant and lucrative sector within the global real estate market, driven by a blend of luxury, exclusivity, and a deepening appreciation for branded living experiences.
