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Luxury brands are always looking for ways to expand their reach and diversify their revenue streams. Real estate, especially the high-end residential market, fits perfectly with their brand image and provides them with the opportunity to cater to high-end customers.
Expanding into real estate is a natural step for the luxury brand, embodying its core values of exclusivity, quality and premium lifestyle. By investing in residential projects, these brands can provide their customers with a more complete luxury experience.
Take Miami, for example. It has become a hotspot for luxury brands looking to broaden their horizons and offer their customers an elite lifestyle. The city’s warm weather, stunning beaches and vibrant atmosphere make it the perfect backdrop for these unique businesses.
Origin: Where luxury meets prestige
The trend of luxury brands entering the residential real estate market dates back to the early 2000s. The move is part of a wider strategy to extend the brand’s influence beyond fashion and into other aspects of luxury living, providing customers with a complete lifestyle experience.
Although there is no formal definition, branded residences are generally considered to be residential properties associated with a well-known brand, such as a hotelier. The brand provides brands, services and facilities to hotels.
Giorgio Armani is one of the pioneers, Armani/Casa In 2004, focusing on interior design and furniture for luxury residences around the world. Armani/Casa’s projects include high-end properties in cities such as Dubai, Istanbul, London and New York, demonstrating the brand’s commitment to elegant and refined living spaces.
Under Armani, other fashion houses began to see the potential in combining brand image with real estate. Versace launched its first branded residence, Palazzo Versace, on Australia’s Gold Coast in 2000. ) A bold and captivating aesthetic.
Check out the most unique developments
Projects such as Acqualina Estates and Bentley Residences designed by Karl Lagerfeld reflect how these brands integrate their aesthetics and quality into real estate.
The St. Regis Bal Harbor Resort, The towering 27-story building sits above Miami’s trendy Collins Avenue and graces the stunning white sand beach. This luxury hotel is located at the crossroads of art, fashion and design. Its prestigious Forbes Five-Star and AAA Five-Diamond honors highlight its exceptional service and facilities.
Fendi Also entered the real estate market, providing interior design services for high-end residential projects. Fendi Château Residences in Miami, completed in 2016, is an example of how the brand incorporates its signature style into real estate. The building features Fendi-designed furniture and public areas, reflecting the brand’s dedication to craftsmanship and innovation.
BentleyThe British luxury carmaker has partnered with Dezer Development to build Bentley Residences in Sunny Isles Beach. The 60-storey tower will feature 200 luxury apartments, with each unit designed to reflect Bentley’s signature craftsmanship and attention to detail.
Waldorf Astoria HotelThe luxury hotel chain has partnered with developer PMG to create the Waldorf Astoria Hotel & Residences in downtown Miami. The development will include a 100-storey tower, a five-star hotel and 360 luxury apartments.
These branded residential projects are not limited to interior design. Many luxury brands partner with renowned architects and developers to create buildings that stand out on the skyline. For example, the Porsche Design Tower in Miami, completed in 2017, uniquely blends luxury living with automotive engineering, including a car elevator that allows residents to park their vehicles directly within their apartments.
The motivation behind the move
Luxury brands enter real estate with a clear goal: to seamlessly integrate their products and provide a complete luxury lifestyle experience, creating stronger brand loyalty among customers. Branded residences are more than just living spaces; they embody prestige and exclusivity, cater to affluent buyers looking for a status symbol, and ensure consistency of service and attention to other luxury details.
For luxury brands, developing branded residences is a strategic move to expand their global footprint, especially in emerging markets where demand for luxury lifestyles is surging.
Branded residences offer extensive concierge services, customized interiors and exclusive amenities to further attract affluent buyers. This trend extends not only to the fashion world, but also to car brands like Aston Martin, where it’s evident in their products. Aston Martin Residence In Miami, the fusion of luxury and real estate is on display.
market impact
according to Knight Frank Wealth Report 2023It is expected that the branded residential market will grow by 12% annually by 2026.
Miami luxury condos with strong brands sell for some of the highest prices, attracting wealthy buyers who crave exclusivity and prestige. These projects feature a host of upscale amenities such as unique dining options, cruise experiences, luxurious spa facilities and personalized concierge services that elevate residential living to an unrivaled level of luxury.
Florida is the state with the most luxury brand residences in the United States, with 32 projects currently under construction and under construction. Miami contains 80% of the projects in Florida, with 11 projects currently in operation and 10 more projects in operation by 2026. under construction. this Knight Frank Global Branded Residential Report.
future trends
Going green has become a major focus in luxury real estate. Today’s brands are focusing on sustainability, using eco-friendly materials and practices to attract the attention of buyers who care about the environment. They talk about sustainable building materials, energy-efficient design and the use of renewable energy.
Let’s talk about technology – smart homes have become the new normal. You have lights that know when to turn on, a climate system that adjusts to your preferences, and top-notch security with fingerprint entry and high-tech cameras. It’s not just about luxury; it’s about making life easier and safer. Big companies including Amazon and Google are leading the charge, making homes smarter than ever before.
Also, health is very important for luxury living. Developers are seeing an increasing emphasis on spas, gyms, yoga studios and wellness centers, all designed to promote healthy lifestyles. Designed to meet the tastes of today’s discerning buyers, it allows you to enjoy spacious living and great feel.
Understanding why luxury brands enter the real estate market is critical for agents to understand these brands’ evolving strategies and their efforts to create more immersive and comprehensive luxury experiences. Second, it sheds light on broader economic and cultural trends affecting the high-end market, such as the demand for unique and prestigious living spaces.
Ultimately, for potential investors and wealthy buyers, this knowledge can provide valuable insights into the growing intersection of luxury brands and real estate, helping them make informed decisions about investments and lifestyle choices.
The transition to real estate isn’t just about selling properties; It aims to extend the brand’s reach into all aspects of luxury life and create a space where the essence of the brand can be felt in every corner. The move underlines the brand’s commitment to quality and exclusivity, ensuring the homes they help build meet their high standards.
This trend offers a glimpse into the future of luxury living and the continued innovation that defines the premium segment.
Chad Roffers is Chairman of Concierge Auctions, an international luxury real estate company. follow him twitter.