Spain and Portugal have firmly established themselves as the leaders of the branded residences sector in Southern Europe. According to the latest report from the Branded Residences Monitor, the two countries now boast a combined total of over four thousand branded residences, which include residential, tourist, and mixed-use properties.
These assets represent a market value exceeding 5.2 billion euros. The report reveals the growing strength of this sector, with Spain and Portugal having a significant share of the market in Southern Europe.
The Branded Residences Monitor tracks real estate and tourism trends in both Spain and Portugal, and it has announced that the complete findings will be published in September. This upcoming full report will delve deeper into the stages of these projects, their size, and how their value has evolved.
However, initial data already highlights the expanding role of branded residences as a key asset class in these nations, which is attracting both local and international investors. These properties are integral to both residential and tourism markets, providing luxury living spaces that cater to high-net-worth individuals and tourism-centric clientele.
In Spain, there are 2,041 branded residences spread across residential and tourist-use properties. The southern province of Malaga stands out as the region with the highest concentration, hosting nearly 61.73% of the country’s total branded residences. This concentration is part of a broader trend, with coastal and resort areas seeing significant growth in luxury real estate development. Furthermore, the average value of branded residences under development in Spain has increased by 58.77% compared to completed properties, indicating a strong upward trajectory in the market value of these assets.
Portugal’s branded residences market is equally robust, with approximately 55.6% of the country’s branded residences located in the Algarve, a region known for its scenic coastal properties and tourist appeal. Like Spain, Portugal also sees a rise in the value of properties under development. The average value of branded residences still in the development phase has increased by 12.53% compared to those that have already been completed. This growth is a reflection of the increasing appeal of luxury properties in Portugal, especially in prime locations such as the Algarve, Lisbon, and Porto.
The Branded Residences Monitor’s report highlights the consistent and strong performance of branded residences in both countries, making Spain and Portugal the dominant markets for branded residences in Southern Europe. The development of these properties is closely tied to the increasing demand for high-end living spaces in prime tourist destinations. Real estate developers are capitalizing on the trend, and the growth is expected to continue, with both residential and tourism-related projects in the pipeline.
The concept of branded residences, which emerged in the United States between 1920 and 1930, has gained significant traction since 2002, experiencing a tenfold increase in the number of projects globally. Branded residences are typically luxury properties that bear the name of a high-end brand, offering premium amenities and services to residents and guests. The concept has become particularly popular in destinations that combine tourism with high-end residential options, attracting affluent buyers and investors seeking prestigious living spaces with additional benefits, such as concierge services, resort-style amenities, and access to exclusive experiences.
Spain and Portugal’s growth in this sector reflects broader trends in global real estate, with luxury developments increasingly seen as attractive investments, especially in tourist-heavy regions. These properties not only offer a return on investment for developers and investors but also contribute significantly to the local economy by driving tourism, attracting high-net-worth individuals, and boosting the construction and hospitality industries.
In addition to the market value of branded residences, the Branded Residences Monitor’s report also tracks the ongoing evolution of the sector, which includes an analysis of the stages of development for each project. From planning and design to construction and completion, the branded residences sector in Spain and Portugal continues to evolve with new and innovative projects. As the market continues to expand, the Monitor aims to provide detailed insights into how the sector grows, from the size and value of individual projects to the broader economic impact.
The Monitor’s upcoming full report, scheduled for release in September, will further explore the evolution of branded residences in Southern Europe, shedding light on the factors influencing their growth and the potential opportunities for future development.
With both Spain and Portugal continuing to attract global interest for branded residences, this sector is poised for ongoing success, particularly in regions like Malaga and the Algarve, which remain key hotspots for luxury real estate.
As the sector evolves, both Spain and Portugal will continue to be at the forefront of branded residence development, shaping the future of real estate tourism in Southern Europe. The growing value of these assets indicates a promising outlook for investors and developers, making the region an attractive destination for luxury real estate investment.
