According to research by Savills, prestigious branded residences, which as a sector have remained resilient in the face of global headwinds, are set to continue their growth worldwide.
The number of branded residences schemes has increased by over 160% in the last decade, with new brands, locations, and a shift in amenities set to propel the sector even further. With more than 690 completed schemes globally, a further 600 are expected to be delivered by 2030.
Says Dr Andrew Golding, chief executive of the Pam Golding Property group, which is Savills’ exclusive residential real estate partner in Africa: “As noted by Savills, i n the world of luxury real estate, branded residences have emerged as a unique and appealing option for property purchasers.
“The affiliation of a luxury brand to a residential product, through the associated quality, design, and service that differentiate those brands, provides the incentive for buyers to pay a premium for these qualities. Existing brand awareness can increase the profile of a branded residence scheme and can attract larger amounts of interest, and consequently buyers, to a project.
“Importantly for investors, compared to non-branded stock, branded residences can command a significant price premium, though it varies by location. Savills analysis shows that the average global premium for branded residences, over a comparable non-branded product, stands at 30% on an unweighted basis. It should be noted, however, that these premiums do vary significantly by location, brand, and type of scheme.”
Says Chris Immelman, who heads up Pam Golding International: “ The allure of branded residences has been steadily growing worldwide as property owners recognise the benefits of having a reputable hotel group oversee their investments in their absence. This innovative model not only ensures the well-being and maintenance of the property but also offers owners the opportunity to generate passive rental income throughout the rest of the year without the administrative burden of obtaining a tourism license, managing guests, and maintaining the property. Purchasers also benefit from the opportunity to apply for Seychelles’ residency for themselves, their spouse and children, enhancing the overall value of their investment.”
With all the new luxury residences in the highly-successful, man-made Eden Island marina development in Seychelles completely sold out, Pam Golding International – which since the launch of the project in 2005 sold over 650 units at a total value of over USD600 million – has formed an exclusive partnership with the Meliá Hotel Group, one of Europe’s largest and most prestigious hotel brands, and has just been appointed exclusive agents for the new branded residential development within the ‘Seafront Estate’ in Seychelles – ‘The Residences at Meliá Seychelles’.
Launch of ‘The Residences at Meliá Seychelles’
Says Immelman: “We are delighted to be working with the internationally acclaimed Meliá Group with their first foray into the fast-growing branded residence sector, a collaboration which aligns with the changing preferences of property owners globally. Branded residences have become a preferred choice for those seeking a seamless blend of ownership, luxury, and financial returns. With a very limited availability of real estate developments open to foreign buyers, we anticipate a strong response from discerning buyers looking to embrace this new and exciting chapter in Seychelles’ real estate landscape.
Just launched, with construction well underway, ‘The Residences at Meliá Seychelles’, will feature exclusive branded residences managed by the Meliá Hotel Group, which operates a multinational hotel chain – Meliá Hotels International – in over 40 countries with a portfolio comprising more than 390 hotels on four continents, all in luxury and premium segments. From upscale urban retreats to luxurious beachfront resorts, each property under their umbrella promises unparalleled service, sophistication, and innovation.
Homeowners in ‘The Residences at Meliá Seychelles’ will have full, freehold title ownership of their fully-furnished units while simultaneously entering into a leaseback agreement with Meliá Hotel Group. This unique arrangement allows Meliá Hotel Group to efficiently manage and operate the owners’ apartments when they are not in residence, while owners gain the advantage of professional management and in addition can enjoy the personal use of their units for six weeks a year.
Says Rod Thorrington, development manager of the Seafront Estate: “Branded residences, as a segment of the residential property market, have grown exponentially over the past decade with the market leaders being Dubai, London and New York. All global hospitality brands, bar none, are growing their branded residences portfolio due to demand, and Meliá Hotels is no exception This demand is driven by a want for ease of ownership, convenience, and of course, the premium that branded residences command – anywhere from 20%- 50% depending on the market and the brand.
“Owners nowadays are looking for turn-key ownership. They don’t want to spend their holidays fixing up their properties, worrying about maintenance and services. They want to arrive, have the fridge full and WiFi working, and enjoy access to the amenities that come along with the hotel brand, and when they’re not holidaying at their property they want to know that it’s being commercialised and generating a passive yield for them, of targeted 5% per annum.”
Catering for buyers seeking a branded component in the USD500 000-USD1.5 million price range, and situated on the main island of Mahé, The Residences at Meliá Seychelles overlooks the Eden Island super-yacht marina and comprises 68 one, two and three-bedroom, branded residences for sale – including two penthouses – alongside a 120-key waterfront, business and leisure hotel. Designed by world-class architects, and spread over 4.5ha of landscaped grounds, the private beachfront estate offers a guaranteed annual return of 5% on investment for the first 20 buyers.
Just 10 minutes from Mahé International Airport and the island’s capital, the development includes retail outlets including a deli and coffee shop, a Meliá Spa & Wellness Centre, three unique dining experiences with captivating ocean and marina views, and a state-of-the-art conference facility. The hotel amenities also include a gym, pool and meeting rooms.
The first branded residential apartment project for the island, owners receive immediate access to the Meliá Rewards programme, offering preferential access and discounts at properties worldwide, a complimentary breakfast and daily housekeeping. Early purchasers receive guaranteed rental returns.
For further information email international@pamgolding.co.za
