These are some of the data from the first ‘Branded Residences Monitor’ report, an observatory that presented in Madrid. The study also reveals that, although 46.8 percent of these properties, associated with a recognised brand and offering a series of associated services and high-quality standards, are for residential use, there is a balance between this type of property, tourism and mixed use in the Spanish and Portuguese markets.

Sixty-two percent of the surface area and 49% of these properties currently under construction on the Iberian Peninsula are in Spain. In the next 36 months, 53.19 percent of the ‘branded residences’ projects in progress will be completed.

Faro and the province of Malaga lead the number of projects and volume in Portugal and Spain, respectively, followed by Lisbon and Madrid. The price of the most expensive branded residences in Portugal and Spain is close to 24 million euros.

A growing but unknown sector

With this market study on branded residences, the observatory project has been launched with the aim of becoming a tool that facilitates knowledge, professionalisation and decision making for all the actors involved in this segment.

The Branded Residences Monitor has two parts:

A White Paper that will explain the DNA of these real estate assets, from basic concepts such as their history and classification, to the identification of the actors involved and the differences of these properties according to their type.

Periodically, it will present updated reports on the sector in Spain and Portugal with data about the branded residences available and emerging trends, among others.

“Both Spain and Portugal are in the focus of residential and tourism real estate investors for branded residences, a segment that offers great potential for both countries,’ says Jesús Rodríguez Maseda, Chair of the Branded Residences Monitor. “Despite this expansion, these properties are assets whose depth is unknown in the Iberian Peninsula. The observatory was born from the need for knowledge, which aspires to be the reference source of information for all the actors involved in this sector through objective, rigorous and contrasted data“.

Branded residences were born between the 1920s and 1930s in the United States. In Spain, timeshares and condo-hotels were their predecessors in the 1960s and 1970s. Since 2002, the number of projects of this type of real estate asset has increased tenfold.

Regulatory complexity, high operating costs and dependence on the brand to which they are linked are some of the risks and challenges they face, while opportunities include their efficiency as an investment vehicle, the commercial dynamization of the areas in which they are, international traction and the promotion of the destinations in which they are built on a global scale. More information at brandedresidences.org.