Branded residences in Spain – a new trend which has arrived to stay

The luxury market is booming, and Spain, with its quality of life, gastronomy, culture and climate, is becoming one of the new preferred destinations for luxury offerings. This includes the growth of branded residences attracting developers, operators and purchasers to beach destinations such as Malaga, or large cities such as Madrid or Barcelona. As the luxury market expands, there is significant potential for branded residences to grow in Spain.

Branded residences, as luxury homes that offer purchasers a range of exclusive amenities, differ between themselves by type. On the one hand, there are “hotel branded residences”, operated by major brands such as Four Seasons, Mandarin Oriental or Marriott, who offer 24/7 hotel services within the branded residences themselves. On the other hand, there are “motor-branded” or “fashion-branded” residences that, while not providing hotel services, offer other exclusive benefits, such as invitations to fashion shows, access to branded fabrics, accessories, or furniture, and personal appointments with the brand's tailors. In any case, whether we are dealing with one type of branded residence or another, the purchaser and/or occupant of a branded residence will receive exclusive and exceptional treatment, characterised by the brand behind it.

Regarding location, it is essential for the alliance between a real estate developer/operator and a brand to ensure that the branded residence is situated in a prime location. This is crucial for developing a high-quality product, ideally surrounded by complementary luxury services (restaurants, shops, etc.). Therefore, the development and growth of the luxury market in prime Spanish locations (Madrid, Málaga, Barcelona, etc.) is key and is directly related to the increasing presence of branded residences in these areas.

From a legal and regulatory point of view, it is also important to have legal security and stability, as these factors favour both national and international investment. Therefore, provided the current legal security and calm prevails, branded residences are here to stay in Spain.

Please listen here to the podcast organised by our Spanish Real Estate Team in which Conchita Sáinz (Real Estate Partner) and Laura Sánchez (Real Estate Senior Associate) interviewed Luis Valdés, Managing Director of the Residential Sales Advisory area of Colliers in Spain, in relation to branded residences and its view of the Spanish market for these types of assets.