The branded residences sector – residential or holiday properties associated with luxury, design or lifestyle brands – is undergoing significant growth across Spain and Portugal. With 47 projects underway, more than 2,400 flats and over 700,000 m² of built space, Spain and Portugal are strengthening their positions as prime destinations for investors, global brands and high-net-worth individuals.
This expansion has led to the launch of the Branded Residences Monitor, a new observatory unveiled in Madrid. It aims to become the leading source for rigorous, consistent and professional analysis of these real estate assets. Its mission is to deliver objective data, define key indicators and establish a shared analytical framework to support informed decision-making by developers, investors, operators and policymakers.
A booming but still little-known market
Branded residences are not a new global concept. They first emerged in the United States during the 1920s and 1930s and reached Spain in the form of early models, such as timeshares, in the 1960s and 1970s. However, it has been since 2002 that the sector has seen exponential growth, with the number of projects multiplying tenfold in just over two decades.
Despite this rapid expansion, the sector remains relatively unknown and is characterised by considerable operational, legal and fiscal complexity. To address this, the new Branded Residences Monitor is structured around two core areas: the production of regularly updated reports on the Spanish and Portuguese markets, and the publication of a White Paper capturing the DNA of branded residences from technical, legal and strategic standpoints.
The sector today
According to data collected in the observatory's first report:
- There are currently 47 active projects in Spain and Portugal.
- Spain boasts 62% of the built-up area and 49% of the total number of properties under construction.
- More than half (53.19%) of current projects are expected to be completed within the next 36 months.
- Faro (Portugal), Málaga, Lisbon and Madrid lead the volume of development in the region.
- Although 46.8% of the units are intended for residential use, the market shows a balance between residential, tourist and mixed uses.
- The highest sale price recorded for this type of asset is around €24 million.
Furthermore, the study reveals that 78% of developments are driven by corporations and business holding companies, confirming strong corporate interest in this hybrid model that blends traditional real estate investment with brand-led lifestyle experiences.
White Paper: defining the DNA of branded residences
The Branded Residences White Paper, conceived as a dynamic and evolving document, provides a thorough analysis of the sector through nine strategic verticals: investment, financing, legal and tax framework, urban planning, architecture and sustainability (ESG), design and interiors, governance and marketing.
It begins by clearly defining a branded residence as a residential or tourist property contractually affiliated with a recognised brand – be it hotel, luxury, design or lifestyle – that ensures higher standards of quality, management and service than conventional properties.
The paper identifies four core stakeholders in this model: real estate developers, investors, brands or operators, and end owners. It also outlines five distinct buyer profiles, ranging from resident-owners to high-net-worth global nomads and emotionally driven purchasers who are drawn to the brand’s identity.
Model challenges and opportunities
The growth of this segment is accompanied by notable challenges, particularly in the regulatory sphere. In Spain, the legal distinction between residential and tourist properties complicates the integration of hybrid models, highlighting the need for legislative updates to ensure fair competition with other countries. Additional obstacles include high operational complexity, elevated management costs and a strong dependence on the reputation of the associated brand.
Nevertheless, branded residences present substantial opportunities: they serve as attractive investment vehicles, strengthen the commercial appeal of the areas where they are located, extend the international visibility of destinations, and cater to emerging demand for flexible living aligned with ESG principles and a global lifestyle.
A tool for the future for a sector in transformation
“The branded residences market is expanding at pace, but it still lacks robust benchmarks that ensure transparency and provide objective data,” explains Jesús Rodríguez Maseda, president of the Branded Residences Monitor. “This observatory was established to professionalise the sector and serve all stakeholders – from investors to designers, as well as those involved in legal and urban planning frameworks.”
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