Living more expensively in Porsche’s multi-storey building: How luxury brands are shaking up the real estate market.

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A bag from Louis Vuitton, a shirt from Tommy Hilfiger or shoes from Balenciaga; Even a luxury car from Porsche or Bugatti is a must-have for the super-rich. Everyone who has enough money loves to show off their wealth. Luxury brands are also status symbols and price drivers.

The concept doesn’t just apply to clothing and cars. Recently, the super-rich have also had the opportunity to improve their living spaces with prestigious labels. You read that right. Luxury brands are conquering the real estate market.

Apartments from car brands

Four Seasons, Mandarin Oriental, The Ritz-Carlton, Six Senses and St. It started with premium hotel chains like St. Regis. Well-known hotel names have been taking advantage of the opportunity to offer not only hotel rooms, but also apartments in their name for almost a century. Your advantage: Status and renowned quality and of course the usual hotel service.

For several years now, automobile manufacturers and fashion brands have also wanted to get a share of the real estate pie. A Porsche skyscraper has stood in Miami since 2017. There are 132 flats on 60 floors. Those who lived there paid between 6.3 and 32.5 million dollars! New owners can drive their Porsche directly to the elevator and into their apartment.

This year, the groundbreaking ceremony for another high-rise building took place a few hundred meters away; This time, Bentley owners are also expected to attend. Aston Martin and Bugatti have now stepped into the real estate world. So are fashion and jewelry designers such as Bulgari, Armani, Roberto Cavalli and Fendi.

Swiss ski resorts come into play

Branded properties are often located in places where the rich and famous go on holiday. Besides Miami, Dubai and New York are also popular destinations for high-end residences. The market is developing. According to international real estate consultant Knight Frank, 26,000 homes are currently marketed as branded housing in 52 countries. “Of these, 186 projects have been completed and 138 are under construction,” says Jaroslav Machalicky (48), luxury real estate expert at Zurich private bank EFG.

According to Knight Frank, 63 percent of the brand’s properties are located in urban areas. 32 percent are located on beaches or in hot resort areas. And 6 percent are in ski areas. “Most of these are in Switzerland,” says Machalicky.

The bill continues

These are the Chedi branded residences in Andermatt UR, Six Senses in Crans Montana VS and Hard Rock in Davos GR. Buyers spend several million francs on condominiums here. The most expensive Sawiris apartment is said to cost up to 6 million francs, depending on the interior design. A 3-room flat is currently advertised on Six Senses for sale for 7 million francs.

You can make a lot of money with branded properties. This is also shown by figures from estate agent Savills. Accordingly, the prices of labeled apartments are on average 30 percent higher than other luxury properties. They cost over 50 percent more in emerging markets. “Associating a luxury brand with a residential product clearly offers buyers an incentive to pay premium for the quality, design and service involved,” says Machalicky.

Customer base is growing

In addition to exorbitant sales prices, the increasing number of millionaires is likely to be another driver of the boom in branded real estate. In the financial world, the world’s richest people are divided into two categories. High net worth individuals (HNWI) are individuals with investable assets of at least 1 million francs. Ultra-high net worth individuals (UHNWI) have over $30 million in savings. Over the next five years, the number of UHNWIs worldwide will increase by 28.5 percent to 750,000. The number of wealthy people is expected to exceed 100 million in the same period.

If you want to impress this international customer base, you will be more successful with brand names. “Even restaurant brands such as the Nobu project in Mexico sold 300 apartments in 6 months,” says Machalicky. The success of such projects surprises even experts. A gold mine that will bring many more brand names to the stage in the future.

Source :Blick