Branded residences, the booming multi-billion euro property phenomenon that's taking off on the Costa del Sol

The Costa del Sol is the epicentre of branded residences in southern Europe, which is the result of luxury brands entering the real estate market. Although it is not a new concept, it is expanding and Malaga is the Spanish province with the most branded residences completed, developed and planned until 2029.

In fact 1,260 of the 2,041 branded residencies in Spain have a market value of 3,460 million euros, according to data from Branded Residences Monitor, an organisation created in June with the aim of gathering information on the sector.

Luxury firms include interior design from names such as Fendi Casa and Minotti; fashion from Dolce & Gabbana, Karl Lagerfeld, Versace and Ellie Saab and automotive brands like Lamborghini and Bentley who have all become property developers. But although branded residences are "unique real estate assets", they are governed "by the same rules as any other type of property" and "do not only attract high-spending clients", says Jesús Rodríguez Meseda, president of Branded Residences Monitor. He has detected that on the Costa del Sol there are also buyers with a lower purchasing power, who "are attracted by the brand, the lifestyle and the services offered by these assets".

Marbella developer Sierra Blanca Estates has been "a pioneer in bringing the concept of branded residences to Europe" and leads this sector in the Costa del Sol province. For example, it has signed three iconic projects in its hometown: Epic Marbella by Fendi Casa, Karl Lagerfeld Villas Marbella, and Design Hills Marbella, in collaboration with Dolce & Gabbana, currently under construction.

The Marbella developer is working on two new projects in collaboration with Rafa Nadal and Abel Matutes in Marbella and Estepona, which will total more than 80 homes. The first mixed residential and hotel project on the Costa del Sol, which will be developed next to the Real de Zaragoza beach in Marbella, has just been announced together with Platinum Estates.

With these developments in the pipeline, Sierra Blanca Estates says that the branded residences market in Marbella "is in full expansion" thanks to the fact that "there is a real, solvent and global demand" for this type of product. "In just a few years we have become the European benchmark for this type of real estate product; today, Marbella and the Costa del Sol are concentrating more and more projects, which demonstrates the high level of interest of the major brands and international buyers in this market," the developer explains.

Sierra Blanca Estates says that the sector says "it will continue to grow and diversify in terms of values and experiences" and add, "Today's client wants a life experience that is coherent with their style, with their values and that offers them confidence, quality and differentiation".