The ‘weapon’ of luxury real estate brands19/05/2022
Real estate projects with a lifestyle brand (non-hotelier) attract customers thanks to their unique design, limited quantity and scarcity.
According to Savills, the luxury real estate market has grown by 230% over the past 10 years. This growth momentum is expected to maintain for many years to come when a series of brands that are not in the hotel industry (non-hotelier) also participate in this field.
In 2017, the Porsche-branded housing complex was put into operation in Miami (USA). Not long after that, Aston Martin opened a super luxury housing project here. Recently, Bentley announced that it will inaugurate its first residential area under this brand in 2026. High-end fashion brands such as Roberto Cavalli, Versace, Elie Saab and Armani are also implementing projects in New York, Dubai. and Miami, 3 famous cities for luxury real estate.
The “throne” of non-hotelier
According to research by Savills, although housing projects endorsed by hotelier brands are still dominating the market with a rate of 84%, the growth rate in the number of housing projects bearing lifestyle brands is still limited. (non-hotelier) like fashion, cars are increasing strongly, from 11% in 2010 to 16% in 2020. Savills forecasts that by 2025, the world will have 11 more non-hoteliers joining the market.
Today, instead of owning a Porsche, upper-class people can boast of owning a Porsche apartment, because a luxury car or handbag is still not enough value to claim. position. This is also easy to explain because the elite always like to wear, using from top to bottom are branded items.
With their popularity, popular brands in the luxury product segment do not have much difficulty entering the real estate market, especially in the context that the number of millionaires and billionaires in the world is increasing day by day. . Credit Suisse’s annual global wealth report shows that a total of 56.1 million people globally have assets of more than $1 million in 2020, up 24% from 2019, more than 1% of the world’s population.
According to the latest research results of Savills, by 2026 the world will have more than 900 luxury real estate projects, a number that nearly doubles the current figure.
The “weapon” of luxury brands
Brands create a new wave of lifestyles, from the most popular, used everyday areas such as fashion with brands such as Louis Vuitton, Gucci, Chanel, Elie Saab… supercars Mercedes, BMW , Rolls-Royce, Bugatti… to less popular areas such as interiors: Henredon, Restoration Hardware, Edra, Poliform…
There are expensive prices, but these brands have their own “weapons” to be always sought after, customers are still willing to pay, even pay higher prices to quickly own it.
The first “weapon” to mention is the uniqueness in design, in order to attract the attention of the super rich and artistic, luxury brands all have unique, imprinted and distinctive designs. The brand’s trademark is “tailored” to the highest standards, with meticulous attention to detail in the selection of materials, design and product processing. This spirit is always carried by luxury brands into all their products accompanied by privileged customer care services,
Besides, the scarcity and limited quantity are the strongest “weapons” of these brands. Typically, the Vespa 946 Christian Dior recently stirred up the market with a price of more than 700 million VND with a limited offer of only 33 units in Vietnam, in just a short time, the price of this car increased. to VND 2 billion because of the increased demand from customers. Or the iconic Hermès Birkin bag of the world’s most luxurious and expensive products priced at up to $1.4 million with a limited edition from designer Ginza Tanaka. This is an exclusive accessory that is even seen by some as an investment due to its limited availability globally.
Scarcity and exclusivity create the value of luxury real estate
Similarly, real estate projects bearing the lifestyle brand (non-hotelier) also inherit those “weapons”. Genuine fashionistas or the super rich always like everything they have to be exclusive and limited. An apartment branded by a favorite fashion brand will be indispensable in their brand collection. Armani, Elie Saab, Missoni, Versace soon realized this.
The imprint of Elie Saab’s Haute Couture dresses that appeared at Paris fashion week, the famous red carpets have also appeared in his branded real estate projects. Elie Saab’s projects are created to the highest standards of Haute Couture fashion, from the selection of materials to the finishing touches, handcrafted by master artisans in limited quantities.
After Dubai with the explosion of non-hotelier brands, most recently, Elie Saab cooperated with Masterise Homes to develop the luxury villa project The Rivus – marking the first entry of non-hotelier in Vietnam. Male. The scarce number of Elie Saab mansion projects around the world is also a guarantee for the value of this branded real estate.
Similar to a branded bag or car, many experts assess, luxury real estate can also be a profitable investment with the potential for development of non-hotelier brands in the future.