The global branded residences market is expanding at a notable pace of 12% annually, with its footprint extending across the USA, Thailand, UAE, Portugal, Greece, the UK, Brazil, Vietnam, and beyond. This surge is driven by a resurgence in luxury travel, an increasing desire to own lifestyle assets, and the perception of real estate as a safe haven. Factors like relocation and children’s education are also contributing to this growth. From the Waldorf Astoria in New York to the Standard Residence in Phuket and the Mayfair Park residence in London, branded residences are gracing affluent neighborhoods worldwide. India, too, has the potential to become one of the epicenters of branded residences.

According to a recent white paper by SKYE Hospitality, India could become an attractive destination for branded residences. While India already boasts a sizable supply of 2,900 units—accounting for approximately 10% of the global market supply—there is ample room for this niche, yet rapidly growing, luxury segment to flourish.

India has witnessed a significant increase in the number of affluent households. These modern HNIs (High Net Worth Individuals) and UHNIs (Ultra High Net Worth Individuals) are seeking exclusive spaces, top-tier amenities, and curated services, driving the demand for branded residences. A few years ago, features like in-home dining services, concierge services, exclusive wine cellars and cigar lounges, and wellness spas within residential projects seemed unimaginable. Today, thanks to branded homes, these offerings are gradually becoming mainstream.

Prominent brands, both within and outside of hospitality, have already ventured into this segment. Notable names include Yoo, Trump, Versace, IHCL, Leela, Four Seasons, Atmosphere Core, Marriott, and Oberoi.

"Despite significant growth in branded residences in recent years, what we have observed is just the tip of the iceberg. India has tremendous untapped potential to capitalize on. Average HNI Indians are spending generously on aspirational lifestyles, which will unravel a big market for branded residences. Interestingly, the trend will no longer be limited to big metros but will also percolate to tourist destinations and Tier-2 cities," said Mr. Ankit Kansal, MD of SKYE Hospitality.

In addition to strong demand driven by the rise in affluent households, India also offers a significant cost advantage. According to SKYE's study, average prices for branded residences in London, Miami, and New York are approximately ₹39.5 crores, ₹20.3 crores, and ₹60.2 crores, respectively. Average ticket sizes in other emerging cities such as Dubai (₹13.5 crores), Athens (₹17.9 crores), and Phuket (₹10.5 crores) are also high. In contrast, the average ticket size of branded homes in India is around ₹9 crores, with opportunities in the lower bracket as well (₹6-7 crores).

"Rich Indians are key growth drivers in international property markets such as Dubai, Singapore, London, and Athens. Now, with exclusive spaces and aspirational living available in their own backyard, many will likely turn their attention inwards rather than looking across borders," added Mr. Ankit Kansal.