Spain has firmly established itself as Europe’s leader in premium branded residences, holding over 2.000 units and substantial development pipelines, particularly on the Costa del Sol (62%), driven by high - net - worth international demand, where areas like Marbella are hubs for leading brands such as Four Seasons, Mandarin Oriental, and Dolce & Gabbana, followed by the capital of the country, Madrid and Barcelona.
Branded residences are high - end, privately owned properties afilliated with well - known brands, usually luxury hospitality, fashion, or automotive groups, offering services, amenities, and design standards similar to five - star hotels. These developments provide residents with premium, hassle - free living, including concierge services, spas, and exclusive lounges.
This model originated in the 1920s in New York City, U.S., pioneered by The Sherry - Netherland Hotel in 1927, which offered private apartments with hotel services, and later expanding in the 1980s with Four Seasons in Boston, U.S., and Amapuri, Thailand, has become one of the most dynamic premium real estate in Europe.
The Branded Residences Intelligence Report Spain & Portugal, the first market intelligence report specialized in Branded Residences developed for the two countries, analyses in depth the evolution, characteristics, pipeline and market value of existing and future projects in both countries, including the peninsula and islands.
The report confirms Spain and Portugal as benchmarks in Southern Europe, with 66 projects in progress, more than 4.100 units and an updated value of €5.216 million, a figure that will exceed €6.000 million as the projects still in the preliminary phase are defined.
In both countries, the apartment is positioned as the predominant typology and the combined pipeline exceeds 700.000 square metres of buildable area, evidencing the consolidation of the model.
Spain concentrates its strategy on a pure residential model, designed for stable, family use and as a second/third/fourth residence with high purchasing power, while Portugal shows a more tourism - oriented profile with a significant presence of mix developments.
The scale of the projects in Spain is considerably higher: +116% in works in progress and +129% in completed developments compared to Portugal. Likewise, the market value of completed apartments and penthouses in Spain is more than 50% higher than in Portugal. Concerning villas, both countries have comparable values, while in projects under development, Spain exceeds the average value of Portuguese units by more 70%.
From an operational point of view, the Co - Located format, residences that share services and location with hotels or resorts, predominances in both markets: 52.6% in Spain and 75% in Portugal, reinforcing the connection between luxury hospitality and high - end residential.
The study also confirms the strong territorial concentration. In Spain, and concretely in the community of Andalusia, Málaga and the Costa del Sol account for 61.39% of the total number of units, while in Portugal Faro and the Algarve region account for 55.63% of the market.
The report identifies the predominant archetype in each country. In Spain residential apartment in a holiday destination, with 261.8 square metres and an average market value of €1.9 million. In Portugal tourist apartment in a holiday destination, measuring 141.3 square metres and with an average value of €1.07 million.
Finally, the Branded Residences Monitor warns about the inappropriate use of the term “Branded Residences” for projects that do not meet the essential requirements, operating brand, integrated services and professional management, generating confusion in the market and misinformation.
Key Aspects of Spain’s Branded Residences Market:
• Market Leadership: Together with Portugal, the region is a European focal point with Spain boasting the largest, most ambitious projects and significant growth in urban and coastal areas.
• Prime Locations: The Costa del Sol (Málaga) leads, followed by high – demand, exclusive, and urban projects in Madrid and Barcelona.
• Top Brands and Types: The sector includes both hotel – branded residences such as Four Seasons and Marriott International and fashion/luxury – branded developments like Dolce & Gabbana, Fendi, Karl Lagerfeld, Lamborghini, and Missoni among others.
• Key Drivers: High demand is fuelled by the desire for luxury lifestyle, exclusive services, and strong investment potential, with many buyers looking for branded experiences rather than just prime locations.
• Market Outlook: The sector is experiencing rapid expansion, with projections indicating further substantial growth over the next few years due to increasing interest from international investors.
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