The Global Branded Residence market is growing at a notable pace of 12% yearly. Across the globe, branded residence market is expanding its footprint in USA, Thailand, UAE, Portugal, Greece, UK, Brazil, Vietnam, etc. Resurgence in luxury travel, growing propensity to own lifestyle assets, and perception of real estate as a safe haven is driving the trend. Other factors such as relocation and kid’s education, are also contributing to the growth. From Waldrof Astoria in New York to Standard Residence (Phuket) to Mayfair Park residence in London, branded residences are adorning affluent neighbourhoods of the world. India can also become one of the epicentres of branded residences.
As per a latest white paper published by SKYE Hospitality, India has the potential to become an attractive destination for Branded Residences. While India already enjoys a sizable supply line of 2900 units (~10% of the global market supply of Branded Residence), there is more headspace for the niche but fast-growing luxury segment to thrive.
India has seen a momentous shift in the volumes of rich and affluent households. These new age HNIs & UHNIs look for exclusive spaces, top tier amenities, and curated services, which is driving the demand for Branded Residences. Few years back it was difficult to imagine, in-home dining services, concierge, exclusive wine cellars & cigar lounges, wellness spas inside a residential project. Today thanks to Branded homes, it is gradually coming to mainstream.
Already big branded cutting across both hospitality and non-hospitality have ventured in the segment. Some of the notable names include Yoo, Trump, Versace, IHCL, Leela, Four Seasons, Atmosphere Core, Marriott, Oberoi, etc.
“Despite a sizable growth in the Branded Residence in recent years, what we have observed is just a tip of the iceberg. India has tremendous untapped potential to capitalize on. Average HNI Indians are spending generously on aspirational lifestyle, which will unravel a big market for Branded Residences. Interestingly, the trend will be no more limited to Big metros but will also percolate to tourist destination and Tier-2 cities” Quoted Mr. Ankit Kansal, MD, SKYE Hospitality.
Besides strong demand due to rise in well-heeled affluent households, India also offers a tremendous cost advantage. As per the study by SKYE, average prices of Branded Residences in London, Miami, and New York are to the tune to 39.5, 20.3 and 60.2 crores. Average ticket sizes in other emerging cites such as Dubai (13.5 crores), Athens (17.9 crores), Phuket (10.5 crores) are also high. In contrast average ticket size of branded homes in India is around INR 9 crores with enough space for lower ticket bracket as well (INR 6-7 crores).
“Rich Indians are one of the key growth drivers in international property markets such as Dubai, Singapore, London, Athens, etc. Now with exclusive spaces available and aspirational living available at their own backyard, many will now turn attention inwards rather than going cross-border.” Added Mr. Ankit Kansal.
