Q4 2023 Market Insights
The branded residences sector is seeing a period of unprecedented growth, globally. In the past 10 years (2013–2023) the sector has grown by 156% with 714 projects open and operating globally at the end of 2023. Perhaps even more astonishingly, that number is set to almost double in just the next 8 years with a further 659 projects having been signed and announced to be delivered around the world.
Branded residences have grown to be a truly global phenomenon. Despite originating in North America, the concept has now spread across all geographies. In terms of the distribution of projects, as at Q4 2023, North America leads the way, representing 36% of all completed projects. This is followed by Asia Pacific at 24% and Europe at 15%, CALA and MENA both stand at 12%, with Africa only representing 1% of the global share of projects.
The global pipeline of projects, however, shows a shift-change in these rankings. MENA and CALA will see the largest proportion of new projects at 25% and 21% of the pipeline, respectively. This is led by Dubai and Saudi Arabia in the MENA region and Mexico in the CALA region. Asia Pacific will see 19% of the pipeline being developed, particularly in hotspots such as Thailand and Vietnam. North America currently stands at only 18% of the development pipeline and Europe at 16%.
The result of this change is forecast to level the playing field with the regions, excluding Africa, representing between 16% (Europe) and 27% (North America) of the total market of open and pipeline developments globally
With the sector due to almost double in size over the forecast period, new and exciting brands entering the market and projects being delivered in new territories, the future of the sector is extremely promising and will be typified by geographical expansion, consolidation of the model in the development community and innovation in brands, as well as the services and amenities that are being provided.
