Knight Frank in its Global Branded Residences Report 2023 confirms that the luxury property market is enjoying sustained growth despite significant recent economic turmoil. The report tracks the portfolios of 15 leading luxury branded residence operators and identified 186 live schemes globally, which will be joined by 32 new schemes this year, 23 in 2024, 26 in 2025 and 22 in 2026.
The research also identifies a further 35 schemes in the pipeline with no confirmed launch date. The number of new schemes with known opening dates represents a 12% annual growth rate up to 2026 – or 55% overall over the period to 2026. North America accounts for nearly 40% of all projects, followed by Asia-Pacific (20%) and Europe (13%). The schemes are located across 52 countries, dominated by the US (106 schemes), and with Mexico, the UAE, Thailand, the UK and China all with double-digit numbers of schemes. Within the US, Florida is leading the charge compared with all other states. 80% of Florida’s schemes are found in Miami.
In terms of growth markets, 60% of the Middle East market is currently under development. Europe and Latin America
follow at 49% and 46% respectively. In absolute terms, the biggest development pipelines are seen in the US (36 known
schemes), The UAE (7), Mexico (7), the UK (5), and Saudi Arabia (4). Adrian Yeoh, Executive Director, International Project Marketing, Knight Frank Property Hub Malaysia, notes: “In terms of brands Ritz-Carlton leads with the highest numbers of schemes, followed by Four Seasons. In terms of rate of growth, Aman and Six Senses lead with 68% and 67% respectively of their total portfolio currently in their development pipelines”.
Knight Frank’s research confirms this growth in supply will be matched by demand – evidenced by key wealth, travel and
property dynamics”. Yeoh comments “In fact, our clients in Malaysia have an affinity with certain brands and have demonstrated strong interest in many of our turn-key offerings in US, UK and Dubai:
US: Mandarin Oriental Residences Fifth Avenue, New York
US: The Towers of the Waldorf Astoria New York
UK: The Whiteley London (Six Senses)
Market fundamentals support 55% growth in global branded residences up to 2026
UK: The OWO, London (Raffles)
Dubai: The Ritz-Carlton Residences, Dubai, Business Bay.
Yeoh says “Strong brand recognition means purchasers know exactly what they are buying into; world-class services &
amenities, coupled with architecture, interior design and location”. Liam Bailey, global head of research at Knight Frank said: “As the sector matures it will face growing challenges.
These include a potential conflict between purchaser and developer timescales, the need to define and substantiate the
added value that a brand can provide, as well as the need to provide clear evidence of its commitment to sustainability.
However, the clearest feedback from our research is the depth and breadth of opportunities for developers and operators.
The global economic environment is more challenging this year, but our view for the period up to 2026 is that demand will
be supported by wealth creation, travel, and investment fundamentals.”
Wealth creation will support the sector:
The global population of ultra-high-net-worth individuals (UHNWIs) declined by 3.8% in 2022 due to sharply higher interest
rates and more challenging geopolitical conditions. However, more positive long-term trends mean that the population of
UHNWIs is projected to rise by 28.5% over the five years from 2022 to 2027.
The US and China will contribute significantly to wealth creation, with growth of 30% and 27% respectively. Other countries
such as Canada, Australia, India, Germany, and the UK will also see substantial growth in the number of UHNWIs by 2027.
At a regional level, growth will be led by Australasia, Asia, and the Middle East.
Market fundamentals support 55% growth in global branded residences up to 2026
Heaton-Watson noted: “Global sales of prime and super-prime properties have rebounded and key hub markets such as
the US, UK, Australia, and European hotspots Spain and France are favoured destinations for second home purchases for
Malaysians, particularly for lifestyle, business, connectivity and education. With branded residences, the services &
convenience provided by the operators are the ultimate value-add”.
