Branded residences first appeared around a century ago in New York, yet today it seems surprising that they did not become an established model until the 1980s – and, even then, they remained a niche segment of the luxury real estate market, targeting a privileged HNWI audience. These premium homes are in the best locations and associated (and usually co-located) with a 5* hotel, which provides a range of ‘at home’ services and luxury amenities to its neighbouring residents.
Colombo’s first high-rise luxury apartments were at Royal Park in Rajagiriya in 1994, followed by Crescat Residences in 1998. Although these were not branded, they introduced the concept of luxury elevated living and paved the way for the premium branded residences that are now appearing in the region. Unsurprisingly, as a vibrant city in a fast-growing economy, world-famous hotel brands including JW Marriott, Ritz-Carlton, Shangri-La and ITC Hotels are planting their flags in Colombo’s super-prime locations with luxury hotels and residences. As of 2021, there is a number of luxury branded apartments to buy in Colombo Sri Lanka, among which Sapphire Residences sits comfortably at the top.
“Branding real estate creates an aspirational model that reflects the prestige and kudos associated with a luxury brand, facilitating stand-out in an increasingly competitive and crowded marketplace in which consumer expectations continually rise,” explains London based real estate marketing specialist Chris Graham of Graham Associates, who recently published a major new report on international branded residences.
Not much has changed in terms of the overall concept during the past 35 years; however, since the turn of the millennium the growth of branded residences has been truly astonishing. Between 2002-2012 the number of hotel brands offering residences increased tenfold, whilst the number of branded schemes has almost tripled in the last decade and is forecast to grow by a further 27% in the next three years. “This remarkable growth has been driven by wide-ranging and proven benefits for developers, operator brands and purchasers,” observes Mr. Graham. “It is an unusual “win-win-win” scenario in which all of the parties can benefit.”