Branded Residences - The Future of Community Living

Multiple passports, global citizens, commutes that cross borders, jobs that span continents, societal expectations – these days, life is not limited to the invisible borders that once kept individuals and families in the same neighbourhoods where they grew up.

This globalisation of our personal lives opens new doors and brings cultures, couples and careers together, but has simultaneously watered down the concept of a tightknit community with relatable neighbours in close proximity.

As families move further from home, friends, siblings, grandparents and more may be videocalls away rather than down the road.

The loss of community

Whilst global lifestyles continue to grow – at Lucas Fox we have seen a strong uptick in international buyers purchasing properties in Spain over the last few years – many peoples’ experiences during Covid highlighted an important factor that was missing: a close community.

Defining community as “a group of people living in the same place or having a particular characteristic in common,” highlights what we have lost a sense of – like-minded people living in the same place – whilst gaining international access.

In NXGN’s white paper on The Rise of Next Gen Luxurians, they highlight that “In a commercial landscape saturated with empty promises and superficial initiatives, Next Gen Luxurians seek genuine recognition. They crave to be heard beyond the noise of social media, especially as they navigate a world where isolation and loneliness are pervasive.”

The link between branded residences and communities

To understand best the relationship between branded residences and communities, we asked Alessandro Bergonzi Martinez from Azur Group, a property developer currently working on various branded residence projects in Spain, for his thoughts:

“Branded real estate is no longer only about luxurious properties or world-renowned partnerships. It is about creating experiences and fostering connections. It transforms a residential development into a vibrant ecosystem of like-minded individuals.

In a world where isolation is becoming more common, real estate projects that focus on the collective spirit created by community building is an added value that goes beyond the physical property. It does not only create a lifestyle but also brings emotional value to ownership. A family turns a house into a home and a curated community transforms a real estate project into a collective."

These thoughts align closely with Yoo’s John Hitchcox, as quoted in Graham Associate’s Branded Residences Report - 5th Edition

“I put our success down to our ability to craft design-led communities that offer a sense of place, where like-minded people choose to live - a sort of modern-day village.”

Identifying the right branded residence for community-building

With varying schemes available, not all branded residences will place the same value on community.

Projects which favour short-term rentals and investment-led buyers encourage shared use of amenities with a high rotation of renters, potentially creating a less community-focused atmosphere due to shared spaces and the turnover of guests in the building.

However, other projects aim to foster a sense of community through:

Gathering spaces available only to homeowners such as networking rooms

A limitation of rentals, for example, allowing for a minimum of 3-6 months rental to reduce the turnover of guests

Standalone projects which do not share amenities with a hotel

Resident-only events and social activities, or curated programming to offer exhibitions or wellness workshops for residents

The selection of a members’ club branded residence such as Ora by Casa Tua <to be hyperlinked to property listing>, traditionally a hospitality brand that brings together members around food and events which will soon offer these same experiences in Miami’s Brickell district.

Furthermore, selection of the brand is paramount. Whether choosing a hospitality brand such as Four Seasons or Mandarin Oriental, or a fashion or automobile brand like Missoni or Bugatti, homeowners are choosing to align themselves with an identity, with expectations of design and services, and with an existing community with shared values as well as similar financial capacities.

The future of community living

Whilst branded residences have been in existence since the 1920’s, the concept of creating community is still in its early days – not to mention, the experience is limited to those who can afford the higher purchase and community fees that these projects command. But it may not be as far in the future as we imagine.

In the US, where branded residences already have a strong presence, they are now evolving to the stage where branded residence retirement communities are emerging.

““There is a growing wealthy and ageing global demographic and I would not be surprised to see a move into more branded retirement and senior living residences,” predicts Adam Maclennan at PKF hotel experts’’An example is St. Regis Residences Rye, a gated community with the comforts of the five-star hotel andw here at least one person in each household must be 55+.” says the Branded Residences Report 2021 by Graham Associates.

With branded residences booming worldwide , it remains to be seen how the dynamics will continue to evolve. For now, they remain exclusive, focusing on the HNW market who are drawn to their locations, services, ease of use, and amenities - though as the variety of brands and the offering becomes more widespread and more competitive, we may start to see branded residences beginning to offer not just curated experiences, but curated communities.