Egypt and the UAE hold the largest volume of under-development branded homes, accounting for around 21%, with the former country currently having two branded residence schemes and 14 projects in the pipeline, Invest-Gate reports.
The North African country has the fourth-largest pipeline, behind the US, the UAE, and Mexico, according to Savills’ recently released “Branded Residences” report.
Head of Egypt at Savills Catesby Langer-Paget noted, “Earlier this year, the Egyptian Ministry of Housing announced its aim to achieve USD 4 bn of real estate exports within three years, and branded residences were mentioned as a key avenue to achieving this by providing a product that appeals to international investors.”
In the Middle East, Emaar Hospitality Group is growing fast with an extensive supply across the UAE and other neighboring nations, under its Address and Vida brands, the study indicated.
Savills reported that the branded residences sector has seen seeing phenomenal growth, rising in number by 195% in the last decade. There are more than 430 branded schemes globally, with a combined total of 65,000 units, the UK-based real estate service provider confirmed.
“A record number of schemes opened this year, with 60 projects delivering more than 9,000 additional branded units across 21 countries,” read the report, adding that the figure is set to grow further in 2020 once nearly 70 schemes are finalized.
Savills attributed this growth to the increasing number of hoteliers with hotel-branded schemes, which account for 86% and 96% of the completed schemes and pipeline supply, respectively.
Marriot International, whose brands include Ritz Carlton, St Regis, and W, will remain the market leader. However, Accor hospitality company is rising fast and has an anticipated supply equal to the former hotel chain, according to Savills.
According to the report, North America is home to 40% of all schemes, yet other regions are growing rapidly. The Asia Pacific, led by Thailand and Vietnam, presently holds the most important schemes in planning and under construction (23% of the pipeline), followed by the MENA region (21% of the pipeline).
Latin America is a major growth market; the number of schemes in Mexico is set to more than double in the near future, as new branded projects are expected to open in both resort and city locations.
At the city level, Dubai is set to overtake New York as the global branded residences capital by year-end, thanks to a pipeline equal to its current supply of just over 20 schemes. However, Miami has the third-largest number of schemes and will retain its position. In Asia, Phuket is foreseen to overtake Bangkok, wherein there are abundant smaller resort schemes underway.
Read more about the branded residences trend: https://invest-gate.me/features/branded-residences-a-luxury-trend-on-the-rise