There are more than 690 projects completed around the world and another 600 are expected to be delivered by 2030, according to the Savills “Branded Residences Report”. A trend that is also gaining strength in Portugal, with the business expanding to less explored and more rural areas.

“In Portugal, this market has always been very present in the Algarve region and, therefore, closely associated with leisure products, in a bathing and resort context, with an important investment/return component. In recent years, this segment has been expanding to other regions of the country, conquering more urban markets such as Lisbon and Cascais, or more rural ones, such as the Douro or Alqueva regions”, says Luís Clara, Capital Markets Associate for Savills Portugal and reported by idealista.

Paula Sequeira, Consultancy and Valuation Director at Savills Portugal, highlights that “we have been witnessing a diversification of the buyer profile, less and less focused on the investment/return component, valuing its use as a lifestyle product”.

“Savills has seen a growing interest in this type of product from different players such as investors, promoters and end users, having advised several projects in their conception (definition of positioning and 'product') and subsequent implementation, through 'brand procurement'”.

Diversification

At a global level, the branded residences business has diversified, “no longer being exclusively oriented towards luxury hotels and starting to offer products at all scales of hotel chains”, comments Rico Picenoni, Head of Savills Global Residential Development Consultancy.

He adds that we are witnessing “an entry of non-hotel brands from a wide range of sectors, including the fashion, design and automotive spaces”. For example, Dolce & Gabbana, De Grisogono, Mama Shelter and Rare Finds.

According to the consultancy's report, non-hotel brands will represent 20% of the total supply of branded residences by 2030, which represents an increase of around 40% compared to current levels.