Fashion brands, like Versace and Bulgari, put their names behind luxury condos
In a not-too-distant future, the label on your bag may match the one on your luxury condominium.
According to CNBC, demand from the wealthy for superior design standards in their homes is resulting in the rise of branded buildings. Labels such as Virgin, Versace and Bulgari are already endorsing properties around the world, and research conducted by the Knight Frank shows that developers increase their profits by nearly one third when they build “branded homes.”
“Originally, branded residences were simply residential developments linked to an adjacent hotel. However, the provision of hotel services is now only part of the concept,” Liam Bailey, head of Residential Research at Knight Frank and the author of the Knight Frank report, said.
The trust element created by a familiar brand has proven especially popular in emerging markets in South America and Eastern Europe, with a growing newly wealthy population, according to the report. Another factor driving the trend is the appeal of investing in trusted and tangible assets in the light of increased financial instability around the globe.
One luxury developer known as Yoo has already designed more than 10,000 homes, hotels and commercial projects in 37 cities, and branded them with names like designer Marcel Wanders, Jade Jagger, daughter of Rolling Stones’ singer Mick Jagger, and designer Anouska Hempel. [CNBC] –Christopher Cameron