Branded Residences Are Becoming Lifestyle Platforms (Not Just “Luxury Homes With a Logo”)
Luxury real estate is changing in a very specific way: the most investable product is no longer defined purely by location, finishes, and prestige. Instead, it’s increasingly defined by operations — the daily experience, the service culture, the wellness ecosystem, and the sense of belonging that surrounds the home.
That is the clearest underlying message running through The Residence Report (2025) by Knight Frank (our primary source for this article). It positions branded residences and ultra-prime living as a sector that has re-entered a growth phase, but with buyer expectations evolving quickly: privacy, value-for-money (even at the very top end), and long-term livability are now central to decision-making.
For developers and capital partners, this matters because “luxury” is no longer a single-dimensional story. The next cycle will reward projects that can prove operational credibility and product-market fit — not just those that can describe it.
A sector that has moved from niche to institutional scale
Branded residences have become an established global development category rather than a boutique add-on. The Residence Report tracks the expansion from 169 branded residence schemes in 2011 to 611 today, and forecasts 1,019 by 2030. On unit volumes, it shows the growth from roughly 27,000 units (2011) to a projected 162,000+ by 2030.
That kind of growth typically signals two things at once:
demand has deepened and diversified (more buyer profiles, more locations, more use-cases), and
competition has intensified (more brands, more developers, more “me-too” schemes).
In the earlier phase of this market, simply being branded could justify a premium. In the next phase, the premium increasingly depends on whether the “brand promise” is delivered through real service systems and consistently executed resident experience.
The buyer base is still expanding — but the buyer is more selective
At a macro level, wealth growth continues to support luxury demand. The Residence Report points to rising HNWI and UHNWI cohorts in 2024, including UHNWI growth of 4.2%, pushing the global UHNWI population above 100,000 for the first time. It also highlights how concentrated this wealth is: for example, the US accounts for 38.7% of the world’s US$10m+ population and China 20.1%, with major hubs also including Japan, India, the UK and Hong Kong.
But a growing buyer base does not automatically mean easy pricing power.
The same report shows that prime price growth has moderated: the Prime Global Cities Index increased 2.3% year-on-year to June 2025, while the quarter-on-quarter movement slipped to -0.1%. That is not a collapse — but it does indicate a market where buyers have more negotiating confidence and more choice.
At the ultra-prime end, however, liquidity remains strong. The Residence Report records 2,152 sales above US$10m across 12 tracked markets in the year to June 2025, up 13.3% year-on-year. This is an important combination: softer broad price momentum, but sustained ultra-prime transaction activity. It typically benefits the best product — and punishes schemes that feel generic, overpriced, or operationally unconvincing.
In other words: buyers are still buying, but they are more deliberate, and their willingness to pay a premium now depends on whether value is demonstrably real — design, privacy, services, wellness, community, and a brand that genuinely reduces perceived risk.
Hotels still dominate the space — but “hotel-adjacent” is no longer the only model
Branded residences historically sat beside (or above) luxury hotels. That model still dominates today: hotel brands account for 83% of existing branded residence schemes, with only a slight reduction expected looking forward.
However, one of the clearest structural shifts is the rise of standalone branded residences — branded residential communities that are not physically attached to a hotel.
The Residence Report breaks this out directly: for hotel brands, 82% of live schemes are linked to a hotel and 18% are standalone, but in the pipeline the split moves to 70% hotel-linked and 30% standalone. The report’s explanation is equally direct: many buyers want the brand and the service, but with more privacy and without sharing “their” environment with transient hotel guests.
From an ALFA capital lens, standalone product is not inherently better — but it changes what must be underwritten. A hotel can “carry” a lot of operational infrastructure; standalone communities need their own governance, staffing, service blueprint, and cost discipline. If it’s done well, that can support stronger long-term value. If it’s done poorly, service charges drift, the experience deteriorates, and resale becomes harder.
Geography is shifting east — and the Middle East is leading the pipeline
North America remains the largest market in absolute terms, but the supply pipeline shows a meaningful repositioning.
The Residence Report notes North America’s share decreasing from 32.7% of live schemes to 26.2% of the pipeline, while the Middle East increases materially, with 26.7% of the pipeline versus 15.9% of live schemes. It describes this as part of a broader “eastward shift” in the sector’s centre of gravity over time.
This pipeline shift is not just a statistical curiosity — it’s a signal of where developers and brands believe future demand and capital will be most responsive. It also means the competitive bar in those markets will rise quickly: more launches, more choice, and more need for differentiation that is credible beyond marketing.
What buyers are actually paying for now: five themes shaping the next cycle
The Residence Report repeatedly frames luxury living as a “service-as-product” category. The home is still the asset, but the lived experience has become a core part of what is being purchased. Below are the themes that matter most, and why they are financially relevant.
1) Longevity and wellness are no longer “amenities”; they are the concept
“Wellness” used to mean a spa, a gym, and perhaps a yoga room. The Residence Report positions the new era as far more integrated: biophilic design, longevity programmes, and increasingly science-backed wellness modalities becoming central to the proposition.
It also highlights the rise of private wellness clubs designed around healthspan and longevity — including Surrenne (Maybourne’s model), described in the report with a clear longevity/clinic positioning and science-led approach.
From an investment standpoint, wellness “works” when it is operationally coherent: governance, staffing, delivery partners, cost-to-serve, and an experience that can be maintained for years — not just photographed for launch.
2) Community has become pricing power (when it’s real)
The report places heavy emphasis on community as a differentiator — not just shared spaces, but curated belonging, private clubs, shared rituals, and resident programming that increases stickiness.
This matters because strong community effects reduce churn and support resale liquidity. In a more selective market, the projects that retain their desirability beyond the marketing cycle tend to be the ones with an operating system for culture and service — not just good architecture.
3) Food and beverage is identity, not decoration
F&B is presented not as a side feature but as a meaningful driver of place-making and brand energy — particularly through chef partnerships and curated concepts that become local magnets while still serving residents properly.
For capital partners, F&B can be value accretive when incentives and leasing structures are aligned and the operator quality is high. It can also be a leakage point if it becomes a vanity feature that loses money or undermines resident experience.
4) Design is moving toward emotional resonance and story
The report highlights a shift toward meaning, sensory experience, and design that feels intentional — with brands like Aman referenced in the context of immersive, cohesive, lifestyle-led environments.
In practical underwriting terms: design matters most when it is deliverable on budget and schedule, and when the “story” is authentic to the location rather than generic luxury cues.
5) Value discipline has arrived at the top end
Perhaps the most commercially important theme is the report’s consistent point that buyers are more value-conscious and selective. Premiums still exist — but only where the proposition feels justified through quality, service credibility, and long-term utility.
For developers, this is a warning and an opportunity. “Luxury” alone is no longer enough. But genuine differentiation, delivered well, can still command meaningful pricing.
Market signals from key cities: what they tell us about demand and premium
The Residence Report includes snapshots and case studies that reveal what is being rewarded in the market right now.
Dubai: depth, momentum, and lifestyle infrastructure
Dubai continues to act as a reference point for global super-prime liquidity. The report cites annual residential sales rising to around US$100bn in 2024, and US$73bn transacted in H1 2025, implying another potentially record year.
It also frames lifestyle infrastructure as part of the demand story: the report notes Dubai’s population of 3.95m sharing about 14 golf courses, used as a rationale for private golf/lifestyle community concepts such as Discovery Dunes.
For ALFA, the takeaway is that Dubai is not only a demand story — it is a competition story. In a high-launch environment, brand alone is not enough; product distinction and operational excellence become decisive.
Saudi Arabia: ambition and capital scale
Saudi is positioned as a major growth market, supported by large-scale master development. The report references Diriyah Gate, backed by the Public Investment Fund, targeting 20,000+ homes, 30+ hotels, and at least a dozen branded residence developments, with pricing cited at SAR 35,000–50,000 per sq m.
The opportunity is substantial, but in underwriting terms the key question is how individual projects translate macro ambition into micro absorption and delivery certainty — including phasing, infrastructure readiness, and end-user depth.
London: brand trust can still move the needle — when scarcity is real
London remains a flagship market for “trust premiums,” especially when projects combine heritage, scarcity, and genuine service alignment.
The report cites The Whiteley (Six Senses branded) achieving an average of £3,650/sq ft, with some sales above £5,000/sq ft, and the developer attributing up to 20% of the premium to brand comfort and trust.
It also references The OWO achieving a blended price of around £5,500/sq ft, and notes Americans as the largest buyer group for that scheme.
The deeper implication is that premiums remain available in mature markets — but only where the proposition is unrepeatable and the brand is genuinely additive to the buyer’s risk perception.
Paris: structural scarcity meets service-led demand
Paris is described as historically constrained for new supply, shaped by tight ownership, strict planning, and fragmented building stock, but with increasing demand from internationally mobile buyers for hotel-grade service and security.
The report highlights Maybourne Residences Saint-Germain at €60,000–€70,000 per sq m, scheduled for 2027, delivering 23 residences above a five-star hotel, with resident access to the Surrenne wellness club and a private rooftop pool.
This supports a broader thesis: in structurally scarce cities, service-led and branded product can re-rate pricing when execution is credible — even at small scale.
“Where next?”: lifestyle destinations and frontier markets as demand catalysts
The report also highlights emerging lifestyle and frontier destinations, including Texas (Houston/Dallas), Fiji, Comporta, Hudson Valley, and Sardinia — framed through themes like relative value, privacy, authenticity, and brand-led demand creation.
For developers, these markets can be compelling — but they increase the importance of conservative absorption modelling, strong distribution strategy, and an operator capable of maintaining standards far from traditional luxury hubs.
What this means for developers and capital partners (the ALFA lens)
Across all the data and case studies, one practical conclusion stands out: the next cycle belongs to the projects that can prove they are not just selling units — they are delivering a durable lifestyle system.
In our capital work, the questions that dominate investor diligence increasingly look like this:
Is the target buyer defined precisely?
Not “global UHNWIs,” but a clear segment: primary vs secondary home, local vs international, “lock-up-and-leave” vs community living, and the real reasons a buyer would choose this project over the nearest alternative.
Is the brand genuinely underwriting value?
The London case study is instructive because it ties brand to trust and premium directly — but only in the presence of strong product fundamentals. Investors want to see how the brand impacts sales velocity, buyer confidence, operations, and long-term liquidity.
Is the operating model realistic and defensible?
This becomes even more important as standalone branded residences rise from 18% of live schemes to 30% of the pipeline in the report’s analysis. A standalone community must be operationally designed from day one: staffing plan, resident journey, governance, and service charge discipline.
Are wellness and community deliverable (not just marketable)?
Longevity/wellness and community are clearly highlighted as key demand drivers, but they only strengthen underwriting when they are structured as real programmes with credible operators and cost transparency.
In short, branded residences are still growing — but the standards of proof are rising just as quickly.
The bottom line
The Residence Report’s data shows a sector expanding toward 2030, supported by wealth growth and strong ultra-prime liquidity. But it also shows a buyer who is more selective, more value-conscious, and increasingly motivated by privacy, wellness, and belonging — which pushes the industry toward better operations, not just better marketing.
For developers, that is a strategic prompt: design and brand still matter, but they must be backed by an operating model capable of delivering the promise consistently.
For capital partners, it is equally clear: the most investable opportunities are those where differentiation is measurable, service systems are credible, and the proposition remains compelling beyond the launch cycle.
Sources:
This ALFA article is based on The Residence Report (2025) by Knight Frank (the “Source Report”).
Report Generated by The ALFA Group