FOCUS
participants have expanded beyond traditional hotel brands, now spanning a wide variety of sectors (and which he accurately predicted will continue to broaden). Companies licensing their brands to luxury residential real estate now include automotive manufactures (e.g. Porsche, Aston Martin, Lamborghini), interior designers (such as YOO), “Starchitects” (renowned global architects like Gensler, Foster+Partners, WATG), fashion and jewellery (high-end consumer brands such as Bvlgari, Versace, Missoni, Fendi,
and Armani), restaurants (e.g. Nobu and Hard Rock) and media/entertainment companies (e.g. Paramount, Walt Disney, Fashion TV, and now high-end publisher Condé Nast). The preferred choice of accommodation among wealthy Saudi families is villas, increasingly residents and ex-pats are embracing the convenience of high-rise luxury living, which has spurred the growth of luxury residential towers in major cities across the Kingdom. Although most are not branded, they have introduced the
concept of lateral elevated living and are paving the way for luxury branded condominiums in the region, mirroring the extraordinary growth seen in neighbouring GCC countries. Most branded residences offer owners a comprehensive range of integrated hotel-style services (and, increasingly, experiences), which include 24-hour concierge and security, transport, secure parking, porters, communications and entertainment systems, cleaning, babysitting, in-home dining, laundry and even shopping and fridge-stocking services. Smart homes are becoming universal. With the high demand for wellbeing, access to an on-site gym and fitness centre is now standard, usually with a spa and associated treatments, swimming pool, sauna and steam rooms. Other premium facilities regularly include a cinema/screening room, private entertaining areas, golf simulator, kids’ and teens’ clubs, residents’ lounge, library, wine storage and, with the rise in home working, access to business centres and meeting rooms. Homeowners can also benefit from the option to rent out their properties through a managed rental programme (there is evidence that branded residences achieve both higher rental income and stronger resales prices). So, does having a renowned 5* name over your door really justify the higher price tag? “Well, if you look at the astonishing growth in the number of branded residences around the world, clearly large numbers of wealthy homebuyers consider that the numerous benefits that they deliver are indeed worth the extra cost,” says Chris Graham. “Fundamentally, luxury brands provide reassurance in terms of quality, design, maintenance, service and management of the residences; buyers know what they can expect. An established brand’s involvement implies a superior level of protection against risk, giving added confidence to buyers.” He points out that this is particularly relevant when buying an off-plan property, as purchasers know that it is likely to be completed, equipped, furnished and managed to the high standards that are commensurate with that brand. “It is all about peace of mind, which is a rare and valuable commodity in this day and age.”
April 2020
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