The global demand for branded residences shows no signs of slowing down with the number of branded residences schemes set to grow by approximately 100% over the next seven years. The latest Savills data on the sector reveals that there are currently 740 completed developments with another 790 across 100 countries expected to be delivered by 2031.
“As well as an increasing number of projects, the geographies have also expanded with operators and brands looking to new destinations”, comments Rico Picenoni, head of Savills Global Residential Development Consultancy.
“Over the next five years, we forecast that 60 new brands will enter the space and the industry will reach five new geographies including Romania and Tanzania.”
North America, the birthplace of the sector, was the single, most active region until 2015, when its global activity dropped to below 50%. By the end of the forecast period up to 2031, this region is expected to reduce further to 25%. The Middle East and Africa are expected to see the strongest growth at 270% over the next seven years. On a more focused level, Dubai retains its place as the most active market internationally, followed by Miami, New York, Phuket and London.
When it comes to market leaders, Marriott International remains in first place, a position it has held since 2002, followed by Accor, Four Seasons and Hilton. In terms of the hotel brands themselves, The Ritz-Carlton has taken the lead, followed by Four Seasons, St. Regis and Rosewood. In terms of non-hotel brands, YOO, with its various brand affiliations, is the market leader.
Hotel brands still dominate the sector, accounting for 81% in 2023 with two-thirds of those within the luxury segment. Non-hotel branded projects made up 19% of the market however Savills expects that share to increase to 21% by the end of 2024.
“Beyond our forecast period, we expect to see an increase in the number of branded residential developments in Asia Pacific and for the region to rival North America within the next 12 years”, says Rico Picenoni, head of global residential development consultancy, Savills.
“Vietnam, Thailand, India and China rank among the top ten countries globally for branded residential activity with compound annual growth forecast more than 2pp higher in Asia Pacific than in North America. With highly active markets, such as Vietnam and Thailand exhibiting 10% annual growth, combined, and burgeoning markets such as Japan and South Korea exhibiting more than 50% annual growth, combined, it is not unrealistic that Asia will surpass North America.”