'Luxury mansions on the Costa del Sol: 72% owned by Spanish millionaires - The Big Ark of branded homes.'

You don't have to turn to the mythical telenovela Televisa to argue that the rich cry too (Mexico, 1979); the key to the phenomenon lies in where they do it.

The Spanish real estate market is witnessing live the rise of branded residences or brand homes, a concept that, while not new, is beginning to take root in the country. This phenomenon began in 1927 with the opening of the landmark The Sherry-Netherland Hotel on Fifth Avenue in Manhattan. The definition places these dwellings at the pinnacle of luxury housing, able to appear on the market at 15-20% above the normal price. Why? "These properties are meticulously designed and, in most cases, managed by leading international hotel operators specializing in the luxury segment,'''explain from financial and real estate consultancy Colliers. Exclusivity, room details, quality of place and personalized services similar to those of a high-end hotel; everything revolves around luxury and exclusivity... And with the main active point in Spain: Marbella.

Branded residences in Spain

The majority of developments of branded residences, whether already existing or planned for the future, are located mainly on the Sunshine Coast, accounting for about 72% of the total, indicates this report published in October. In absolute terms, of the 1,212 units, 869 are located in the province's municipality, especially in Marbella, as shown in this table. This region, known for its tourist''s attractiveness and favorable climate, is home to significant projects such as Epic Marbella by Fendi and Four Seasons Marbella Resort. In addition, the Canary Islands, which represent about 18% of the total, are highlighted by projects such as Las Terrazas de Abama Suites. Madrid and Barcelona are also present, with a particular focus on the urban segment, marked by a large presence of well-known hotel brands.

The state of development

With regard to the status of these developments, it should be noted that 23% of the units have been completed and are now operational, with properties such as the Four Seasons Canalejas in Madrid and the Mandarin Oriental Barcelona standing out in particular. A significant proportion, approximately 66%, is currently under construction, including projects such as Elie Saab Villas Marbella' Elie Saab Villas Marbella''and La Hacienda Alcaidesa Links Golf Resort. The remaining 12% is under development, indicating a sustained commitment to investment and strategic planning in the sector.

Rising wealth and branded residences

A report compiled by Colliers indicates that there was a decline in "wealth creation" last year due to the "poor performance" of the financial markets. But that's just a temporary problem in the economic upturn. Forecasts for the coming years predict an era of wealth. According to published documents from the consulting group Bostón or Credit Suisse, the number of people with extremely high net wealth will grow by 5.3% over the next five years, ending the decline in total assets of the members of this group over the past year. More'The 'broad segment of high net worth individuals (HNWI), including those with assets in excess of $1 million, is also experiencing significant growth. This segment grew by 2.9% last year and is expected to grow by an 'impressive' 57% over the next five years, reaching a global population of more than 109 million people.

The leading development companies

The biggest giant in branded residences is Marriot Group. The American company has more than 150 active projects around the world. Under the umbrella of this leader are such brands as The Ritz-Carlton Residences with 56 active projects, followed by St.'. 'Regis Residences with 22 projects and W Residences with 17, in addition to collaborations with luxury brands such as Bulgari. In second place is the Four Seasons group with 53 active branded residences projects, of which one of the most famous is the hotel project on Calle Alcalá in Madrid. But beyond the hotel sector, YOO stands out as the leader with a total of 70 branded residences. Accor is third on the list with 35 active projects, including brands such as Fairmont, SLS and Raffles. However, they plan to have around 130 residences in the future, making them an important player in the sector.

The Spanish market for branded residences

In the context of the Spanish real estate market, the branded residences segment has grown significantly in recent years.''One of the pioneers in this area was Las Terrazas de Abama Suites, which opened in 2017, and this date can be considered the start of a new boom. Located in the prestigious Abama Golf & Spa resort in Tenerife, this project offers 151 five-star suites residences owned by private investors and managed by the hotel. Another major development in the Spanish branded residences segment was the opening of Four Seasons Hotel Madrid in 2020, with 22 luxury co-located residences. This is not only the debut of the Four Seasons brand in Spain in both the hotel sector and branded residences, but is also becoming a benchmark in the Spanish market for this type of property. Marketing of these branded residences was carried out by Colliers' residential department and 22 units were sold in 24 months, with 73%''buyers were from an international environment. To date, 5 projects have been completed in Spain.

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