Branded residences are evolving fast as developers and operators respond to shifting lifestyle preferences across generations, integrating branded residences with formats that were once viewed as separate.
Generational focus
With the number of branded residences schemes set to grow by around 100 per cent over the next seven years according to data from Savills, the segment is increasingly intersecting with other living models such as senior living, co-living and serviced apartments. This comes as the more affluent older generation increasingly pursue luxury residences with hotel-level services while younger generations flock to branded co-living and serviced apartments, with branded co-living gaining ground among Gen Z and millennial renters especially in urban areas with housing shortages.
Brands and developers are taking full advantage. For example, Ascott Group’s Lyf co-living targets a younger audience that seek flexibility and shared experiences, and operators such as The Social Hub and Ennismore through brands like The Hoxton all offer a melded product, backed by a trusted hospitality brand.
How to execute
And branding is a key part of getting this intersection right. Research by BVA BDRC found that brands add value in the mind of a consumer, and director James Bland stresses the effectiveness of branding when seeking to influence a consumer’s choices.
But how would this work in the context of weaving branded residences with uses aimed at targeting specific cohorts?
“It is being very clear about what is being offered and using brand to amplify it. For example, to appeal to a young demographic that wants something vibrant and lively, explore trendy brands and then really lean into the messages that the brand is putting out there,” Bland advises.
What many of these blended products have in common is a focus on wellness, which has becoming increasingly popular over the past few years. According to the Global Wellness Institute, the global wellness real estate market reached $398 billion in 2022 and is forecast to grow to $887 billion by 2027. That trajectory is being driven by ageing populations in developed markets like the US, UK, Japan and Western Europe, where branded models can offer a premium alternative to institutionalised care.
The branded residence model is also converging with the serviced apartment and extended-stay sectors, particularly for mobile professionals/digital nomads, following a pandemic which redefined how people used branded residential properties.
And while brands like Four Seasons do not specifically market their branded residences such as Four Seasons Resort and Residences Amaala for specific cohorts, the services and amenities offered such as spa services, in-residence dining, concierge services and targeted fitness programs are clear signs of creating points of attraction for consumers ranging for the younger and more active professional to the older generation.
Why
These blended formats are increasingly being included in mixed-use branded residence developments, and the convergence of branded residences with alternative living models is opening up valuable new growth channels for developers and operators. By catering to a broader spectrum of residents, these hybrid formats reduce reliance on a single demographic or use case, allowing diversification and making developments more resilient.
Integrating multiple living models under a single brand also creates operating efficiencies as shared services, staffing and back-of-house infrastructure can be streamlined across different resident types.
Looking at more long-term advantages, extending a trusted brand across various living formats deepens consumer loyalty and creates long-term value. Whether someone begins their journey in a co-living space, transitions to a serviced apartment or eventually moves into a wellness-focused senior residence, the brand remains a constant.
And more and more projects are emerging that combine multiple living formats such as branded residences with co-working spaces and co-living. For example, Aspen Residences Canary Wharf includes branded residences plus a wellness club and coworking, ensuring appeal across different audiences. On a much bigger scale, Diriyah One’s aims to cater to multiple audiences with residences across different price points and amenities focused on multiple generations living within the development.
As consumer preferences continue to shift toward experience, flexibility and brand trust, branded residences are uniquely positioned to blur the lines between how we live and work. And the sector continues to evolve and be reimagined, even as a growing wave of midscale branded residences gains traction, opening the concept up to a much larger audience.