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Branded developments are leading the way in terms of price growth in the world’s prime global residential markets over the past three years, says Knight Frank.

A report released by Knight Frank has found that branded projects are leading the way in terms of price growth in the world’s prime global residential markets over the past three years.

Dubbed, ‘Branded Developments: The Impact of Branding on Luxury Residential Developments, 2012’, the report noted that developers can increase profits by building ‘branded homes’, which have an average 34% uplift in value above non-branded counterparts. The amount of uplift ranged from 5.7% in Jakarta to 58.5% in Dubai.

One luxury-property developer cited in the report is London-based yoo, who has branded and designed more than 10,000 homes, hotels and commercial projects in 37 cities. According to its chairman John Hitchcox, a well-known name and its associations with style are highly appealing to consumers.

‘People identify themselves with the project, the community they’re about to move into and the location to an extent. They are buying into a lifestyle that will enable them to meet likeminded people. These developments are like new villages in a sense,’ Hitchcox noted.

‘I think we’re still in the very early stages of branding in the residential sector. Coupled with the fact that the proportion of the world’s population living in cities continues to grow, I think we’ll see an expansion of the branded sector in various ways,’ Hitchcox concluded.

The report researched 26 branded and 79 comparable non-branded property developments in 17 global cities and found that developments linked to well-known designers or labels were around a third more valuable that similar plots nearby.

Below is a summary of the report’s findings:

City

Uplift per square foot (%)

Dubai

58.5

Berlin

57.0

Cape Town

51.8

Puerto Rico

45.0

Pune

38.9

Kuala Lumpur

35.7

Shanghai

33.5

Bangalore

27.4

Beijing

26.7

Moscow

23.7

Madrid

22.4

Bangkok

21.4

Miami

19.6

Hong Kong

19.1

New York

12.4

London

11.3

Jakarta

5.7

Source: Knight Frank

By Rodel Ambas Jr

12 December 2012

Source: Knight Frank

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This entry was posted on December 18, 2012 by in Future, Investment, Property and tagged , , .

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