The rise of branded residences in the UK

Growing in popularity across the UK, branded residences are an attractive high-end residential property that appeals to wealthier tenants in the fast-growing city centres of Manchester and London, making it an interesting opportunity for property investors.

These buildings usually include premium services and amenities for residents that are reminiscent of what you’d expect from a five-star hotel. They are designed and managed by the ‘brand’ behind the building, and offer an exclusive, luxury living experience.

The branded residence space is normally dominated by hotel brands such as Four Seasons, The Ritz-Carlton and St. Regis. However, different types of operators are now entering the market to provide an experience which reflects their brand and unique expertise. A prominent upcoming example is Nobu Manchester, a restaurant, hotel and residence in Manchester, which is the first Nobu-branded building of its type in the UK.

This landmark tower will provide a curated, luxury living experience in Manchester, which will reflect the precision and expertise of Nobu’s 30-year history as an elite name in the restaurant business, with some additional help from Robert De Niro, who is a partner in the scheme. It is the UK’s most exciting new branded residence yet, and firmly cements the rise of this building type in our city centres. 

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How does it work for residents from day to day?

It’s one thing to say a branded residence is a high-end, luxury lifestyle experience – but what does that actually mean? When a brand creates a building to reflect its values and prestige, it can translate to a wide range of quality services and amenities, such as:

• On-site management team and 24/7 concierge
• Gyms, spas and swimming pools
• Private dining rooms and quality on-site fine dining restaurants
• Event spaces and meeting rooms
• Podium gardens and balconies

Everything is curated to ensure that living in the building is a true experience – one which is befitting of the reputation brought by the brand responsible for the design.

The Six Senses brand is a great example of this. Known for creating luxury resorts, five-star hotels and wellness spas, the company’s portfolio now includes branded residences such as the upcoming Six Senses Dubai Marina. Buyers choose this building knowing a Six Senses-branded home will deliver a high level of luxury and wellness amenities to the same standard as the brand’s other properties. That level of brand recognition and strength makes their residential buildings highly desirable. 

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Why buy property in a branded residence? 

A branded residence offers a level of prestige that other properties might struggle to match. Using the example of Nobu Manchester again, this address will be unique in the UK. That alone has a certain appeal, and it is an advantage that branded residences can offer.

The level of service on offer is another benefit of buying property in a branded residence. The high level of amenities, combined with a 24/7 management and concierge service, gives a level of convenience that is hard to match.

Because a brand has put its name on the building, it is in its interests to make sure the reality of the experience matches the promises made to buyers. Everyone strives to provide good service, but branded residence operators have much more to lose by providing poor service than most building operators.

For example, the Versace residence in London, the Fendi Hotel and Residence in Dubai and the Storyliving by Disney communities across the USA come with a responsibility to the companies in question. The buildings must deliver a level of quality and luxury that matches or exceeds their products in other areas. If they don’t, it could reflect poorly on their other areas of business. 

This is even the case for individuals. The quality and success of the Rafael Nadal-branded residence on Spain’s Costa Del Sol is tied directly to the tennis star. If the building falls below standard, it will affect his personal brand, which could have consequences for products and sponsorships in other areas of his life. 

For investors, these factors translate to a range of benefits that a branded residence can provide, including:

• Hand-off investment – The brand will operate and manage the building on your behalf to a high standard, including maintenance, cleaning and repairs. The brand’s name is tied to the building, offering an assurance of quality.

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• Capital appreciation – You could potentially benefit from higher capital appreciation. Your property will be part of a brand and can grow in value faster thanks to that unique selling point.

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• Higher tenant demand and rental yields – The unique nature of the building can also mean greater tenant demand and higher rental yields. Your property will have another layer of attraction when compared to other luxury properties in non-branded buildings.

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The way that cultural capital combines with financial capital makes branded residences a unique opportunity for investors. It also goes a long way to explaining why these buildings are on the rise and have become more popular than ever with owner-occupiers and investors alike.

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A home and a lifestyle statement all in one

At a time when people are demanding more from their rental homes, a branded residence is something unique. It stands out, offering a quality and reputational guarantee that elevates a home into a lifestyle statement.

That makes these properties especially attractive. The high-end amenities and services are valuable in their own right, but they become a status symbol when tied to a branded residence. 

Want to learn more about branded residences and join the waiting list for our next opportunity in this space? Contact the team today to learn more!