Branded Residences in Spain find themselves in a strong financial position driven by significant growth potential and capitalization on their current international success. As we emphasized earlier this year, the future of real estate investment is closely linked to the creation of these developments, characterized by exclusivity and the prestige synonymous with luxury brands. These projects are not solely led by major hotel operators; they also have proponents among influential fashion houses and the automotive world, and, collectively, are setting new global benchmarks.
The Global Branded Residences Report 2023, compiled by renowned real estate consultancy Knight Frank, paints a compelling picture for a continued upward trend. It predicts a cumulative growth rate of 55% in this market by 2026. This projection is based on an extensive analysis of 324 residential complexes, encompassing over 26,000 units across 52 countries. The top 15 global operators are poised to end 2023 with 218 active projects, followed by 23 in 2024, 26 in 2025, and 22 in 2026, culminating in a total of 289 new Branded Residences projects. While real estate developers in this sector often include seasoned players capable of delivering premium hotel experiences, such as the Ritz-Carlton and Four Seasons, international resort operators like Aman and Six Senses are leading the pack in terms of growth rate.
Although a majority of the 106 ongoing projects are concentrated in the United States, Knight Frank’s report highlights an expanding geographical footprint. Countries like Mexico, the United Arab Emirates, Thailand, the United Kingdom, and China are witnessing a growing presence of Branded Residences as well. Notably, the analysis includes 35 new Branded Residences currently in the design phase, with launch dates yet to be confirmed.
Branded Residences in Spain
Within the Spanish property investment landscape, luxury real estate developers are making significant strides, particularly in bustling urban centers like Madrid and well-established tourism destinations like Mallorca and Malaga. As the market continues to evolve, it’s raising the bar in terms of service quality, new destination choices, and exclusive property offerings, ultimately expanding the range of choices available to discerning investors.
A prime illustration of this trend can be found in the Branded Residences at Abama Resort Tenerife. Nestled alongside an award-winning Dave Thomas-designed golf course, these villas and apartments have sweeping views of the Atlantic Ocean. What sets this resort apart is its affiliation with My Way Meaningful Hotels, a specialist in luxury tourism. Residents have access to Michelin-starred restaurants, ATP-level tennis courts, tranquil pools overlooking extraordinary natural landscapes, and the allure of a secluded beach cove. Abama welcomes prospective buyers in search of a haven for relaxation without compromising on first-class facilities.
Designed by award-winning architects Virgilio Gutiérrez Herreros and Eustaquio Martínez, Abama’s Las Villas del Tenis community ingeniously capitalizes on the terraced landscape, giving each residence exclusive views. These luxury Tenerife villas offer minimalist, luminous design, making them perfect for second residences where buyers can also capitalize on their investment through tourism rentals. The resort’s in-house management team ensures property maintenance and the high standards of the accommodation.
In the Los Jardines de Abama community, modern architecture is coupled with open interior spaces and stunning terraces. Available with one, two, or three bedrooms, this luxury Tenerife apartment complex was designed with the Atlantic ocean serving as the focal point. Just like Las Villas del Tenis, this residential project entrusts property rentals to the resort, catering to guests seeking a serene getaway while enjoying the hospitality services of My Way Meaningful Hotels.
These prestigious Branded Residences in Spain come fully furnished with quality furniture brands, a testament to Arum Group’s dedication to a discerning market segment that values serenity, seclusion, and elegance in exclusive locales. And as the Knight Brand report demonstrates, the long-term prospects in this segment are promising for property developers. The number of individuals with a net worth exceeding $30 million is expected to increase by 28.5% by 2027, and they are actively on the lookout for opportunities in secondary and investment properties.
