While a large part of the Spanish people closely follow the Euribor evolution and its effects on mortgages, a part of the population is focused on the search for the most absolute exclusivity. This is Branded Residences, the latest trend in the luxury real estate sector that offers houses linked to renowned brands and hotelsreserved only for a lucky few.
These residences offer a series of high-end services like 24-hour security, private pools, cleaning and even room service, all for those who can afford a large community of neighbors. Rafa Nadal’s company is the latest to join this trend, investing in this lucrative business.
“They are international profiles, with three or four homes, and they only spend a few months in each one,” explains Paloma Pérez Bravo, an expert in the luxury real estate sector. This type of buyer is not only looking for comfort, but also the prestige associated with living in residences within exclusive hotels. In Spain, the majority of these properties are concentrated in Madrid and Barcelona.
An example of this type of residence is the Four seasons in Madrid, where two of the most expensive houses in the country were sold in 2019. With more than 300 square meters each, their price exceeded 8 million euros. Five years later, its value has increased again. “The price is 20% higher than the market average,” says Pérez Bravo.
However, not all of these residences are located inside hotels. In some cases, it is homes designed by luxury companieswhere millionaire buyers are willing to pay a very high price for brand value.
Alejandro Inurrieta, an economist, warns of the possible negative effects of this phenomenon: “They generate an increase in prices in the surrounding areas and expel those who cannot afford to live there.” Experts suggest the need to balance the market to avoid distortions, although the trend seems unstoppable. According to estimates by real estate companies, the construction of up to 900 new homes of this type next year, particularly on the Costa del Sol and in association with major hotels or luxury brands.
