Members’ Clubs and the Effect on Surrounding Real Estate

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Private Members’ Clubs have been around for centuries, and what started as places exclusively for wealthy men has expanded into centres of culture across the worldwide, each bringing their own niche to the sector.

Originally started as a place to socialise, gamble and discuss politics, private members’ clubs have multiplied and each honed in on a niche relevant to its clients, from wellness to sport and female only spaces. However, something that all have in common is the creation of an exclusive community, bringing together people with similar likes and interests via an entry policy, that usually requires some kind of vetting.

Property values can increase significantly when members’ clubs are established, and they often signal the transformation of a neighbourhood into a luxury hub leading to higher prices in surrounding properties. Dubbed the ‘club effect’ investors and developers are keenly aware of this phenomenon and this is leading to strategic openings in prime locations that, in turn, attract new members and boost local appeal.

The Rise of Private Members’ Clubs

There has been a recent boom in the popularity, and opening of private members’ clubs in the last few years that cannot be fully explained. Many ideas have been speculated but most being tracked as a result of the pandemic. A desire for community left people looking for a curated environment to connect and network with similar individuals. Remote work became much more popular, and professionals are increasingly looking for spaces that combine productivity with a feeling of luxury. Many members’ clubs provide coworking facilities, meeting rooms and high-speed internet alongside a plethora of other amenities that make for a perfect work setting.

According to the Knight Frank’s Guide to Private Members’ Clubs ‘Houses within a mile of these clubs [Soho Farmhouse, Estelle Manor and The Club by Bamford] sell faster (by 2.5 weeks) compared to similar properties five miles away - 12% of buyers registering in the Cotswolds [where the clubs are located] are from outside the UK, but that rises to 26% within the all-important 15-minute drive to Soho Farmhouse.

Spain has formed part of this trend, with Soho House opening three more locations (Madrid, Ibiza and Barcelona) within the next few years. Soho Farmhouse Ibiza is especially anticipated, being the first Farmhouse outside of the original beloved Soho Farmhouse in the Cotswolds.

Location, Location, Location: Why Members’ Clubs Matter for Real Estate

The establishment of high-end clubs boosts demand for nearby real estate as members view these often amenity rich clubs as an extension of their own home, providing gyms, pools and restaurants in a comfortable environment. As remote working has continued in popularity, members clubs are often used for networking and as a substitute for many offices. Private Members’ Clubs also provide a sense of cultural prestige and a busy social scene, leading to a desire to be close to the venues.

When a well-known brand, such as Soho House launches a new ‘house’ it brings with it an increased desirability and exclusivity to a neighbourhood. An influx of wealthy clientele to an area often triggers improvements to local infrastructure and services, such as more upscale restaurants, boutique shops and urban beautification. As it is generally HNW who are members and seek property close to the services of their club, this often increases the number of foreign buyers in an area and affects the speed of sale and price.

Key areas in Spain benefitting from the club effect

Barcelona

• Soho House Barcelona is a key example of the influx of digital nomads and creatives who have flocked to Barcelona, and the brand is set to open a new pool house in 2025

• Juno House was the first women’s only private club in Barcelona and focusses on providing women with a place to enhance their career, support their wellbeing in a holistic setting and find lime minded talented women

• The Wild Bunch is business focussed in the north of the city and its décor is reminiscent of old British clubs you would stumble across in London

Madrid

• Club Matador occupies a historic apartment in the swanky Salamanca neighbourhood. A cultural hotspot, it hosts liv music, art exhibitions lectures and workshops

• Club Puerta de Hierro is a symbol of elegance and tradition, having been founded in 1895. The club has unmatched facilities, with internationally recognised golf courses as well as tennis courts, swimming pools and more. Beyond sports it is a hub of cultural and social activity with galas, various restaurants and more

• Club Alma Sensai is principally designed for women but also allows men. Located next to the iconic Retiro Park, it offers a coworking space, restaurant and wellness area

Marbella

• Motel Particulier takes privacy very seriously, with parties reminiscent of the hedonistic 1920’s and a strict no phone policy. The selection process is meticulous, maintaining its commitment to an elite and discreet atmosphere

• The I/O is one of the newest clubs in Marbella, offering a health club that blends top of the market fitness facilities with lavish wellness amenities. Members can enjoy personal training sessions, exclusive classes and more

• Marbella Club holds a special place in the heart of the town’s elite and the legendary institution has seen all number of celebrities and royals throughout the years. It provides embers with access to a private beach, lush gardens and world class spa.

Future of Members’ Clubs and Real Estate Trends

Some residential developments are going a step further, and integrating members clubs into their offering. One such development is One Wall Street, New York which offers The One Club, 100,000 sqft of residents only amenities including a restaurant, private dining room, gym, dog club, pool and coworking space. We foresee that this trend will continue, with resident only members clubs becoming an integral part of new developments as people increasingly look for community spaces.