According to research by Savills, prestigious branded residences, which as a sector have remained resilient in the face of global headwinds, are set to continue their growth worldwide.
The number of branded residences schemes has increased by over 160% in the last decade, with new brands, locations, and a shift in amenities set to propel the sector even further. With more than 690 completed schemes globally, a further 600 are expected to be delivered by 2030.
Says Dr Andrew Golding, chief executive of the Pam Golding Property group, which is Savills’ exclusive residential real estate partner in Africa: “As noted by Savills, in the world of luxury real estate, branded residences have emerged as a unique and appealing option for property purchasers.
“The affiliation of a luxury brand to a residential product, through the associated quality, design, and service that differentiate those brands, provides the incentive for buyers to pay a premium for these qualities. Existing brand awareness can increase the profile of a branded residence scheme and can attract larger amounts of interest, and consequently buyers, to a project.
“Importantly for investors, compared to non-branded stock, branded residences can command a significant price premium, though it varies by location. Savills analysis shows that the average global premium for branded residences, over a comparable non-branded product, stands at 30% on an unweighted basis. It should be noted, however, that these premiums do vary significantly by location, brand, and type of scheme.”
Pam Golding notes that this model not only ensures the well-being and maintenance of the property but also offers owners the opportunity to generate passive rental income throughout the rest of the year without the administrative burden of obtaining a tourism license, managing guests, and maintaining the property.
Purchasers also benefit from the opportunity to apply for Seychelles’ residency for themselves, their spouse and children, enhancing the overall value of their investment.
With all the new luxury residences in the man-made Eden Island marina development in Seychelles completely sold out, Pam Golding International – which since the launch of the project in 2005 sold over 650 units at a total value of over $600 million – has formed an exclusive partnership with the Meliá Hotel Group, and has just been appointed exclusive agents for the new branded residential development within the ‘Seafront Estate’ in Seychelles – ‘The Residences at Meliá Seychelles’.
‘The Residences at Meliá Seychelles’ will feature exclusive branded residences managed by the Meliá Hotel Group, which operates a multinational hotel chain - Meliá Hotels International - in over 40 countries with a portfolio comprising more than 390 hotels on four continents, all in luxury and premium segments.
Homeowners will have full, freehold title ownership of their fully-furnished units while simultaneously entering into a leaseback agreement with Meliá Hotel Group.
This allows Meliá Hotel Group to manage and operate the owners' apartments when they are not in residence, and in addition residents can enjoy the personal use of their units for six weeks a year.
Says Rod Thorrington, development manager of the Seafront Estate: ““Owners nowadays are looking for turn-key ownership. They don’t want to spend their holidays fixing up their properties, worrying about maintenance and services.
"They want to arrive, have the fridge full and WiFi working, and enjoy access to the amenities that come along with the hotel brand, and when they’re not holidaying at their property, they want to know that it’s being commercialised and generating a passive yield for them, of targeted 5% per annum."
Catering for buyers seeking a branded component in the $500 000-$1.5 million price range, and situated on the main island of Mahé, The Residences at Meliá Seychelles overlooks the Eden Island super-yacht marina and comprises 68 one, two and three-bedroom, branded residences for sale – including two penthouses - alongside a 120-key waterfront, business and leisure hotel.
Designed by world-class architects, and spread over 4.5ha of landscaped grounds, the private beachfront estate offers a guaranteed annual return of 5% on investment for the first 20 buyers.
The development includes retail outlets including a deli and coffee shop, a Meliá Spa & Wellness Centre, three unique dining experiences with captivating ocean and marina views, and a state-of-the-art conference facility. The hotel amenities also include a gym, pool and meeting rooms.
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