The brand of brand residences is expanding in Portugal and being the target of investment by large hotel chains, which expect to attract tourism through luxury houses, Lusa told real estate entities.
Brand residences, or ‘Branded Residences’, are houses or apartments that have services at their disposal typically associated with hotels, such as food, laundry, among others.
“The brand of brand residence market in Portugal has recorded significant growth in recent years, consolidating itself as an emerging trend in the luxury real estate sector,” explained Pedro Fontaininhas, executive director of the Portuguese Association of Residential Tourism and Resorts ().
These properties, he indicated, are “associated with hotel brands or prestigious ‘designers’, which offer owners typical luxury hospitality services and amenities”, he said, indicating that “in Portugal, this concept has popularity, with several completed projects and other developing, especially in regions such as Lisbon, Porto and Algarve”.
Pedro Fontainhas pointed out that “the market has grown significantly in recent years”, indicating that it includes residential and residential tourism properties associated with a brand and has been “expanded to various regions of the country, including from the Algarve to Lisbon, Cascais, Douro and Alqueva region”. The associative leader pointed out a report from Savills that indicates that “the number of projects has increased more than 160% in the last decade.”
João Cília, CEO (CEO) of the Christie’s Front Door, explained that “the concept of tourist luxury homes is generally linked to the sale of tourist license” and that “in this type of enterprises, the buyer has the obligation to put the property acquired for tourist exploitation by the manager, which could be a known hotel chain (‘branded residence’) Obiliary, who developed the project ”.
The manager stressed that there is still no concrete data on the size of this market in Portugal, but has increasingly reported projects of this nature in commercialization, especially in tourist areas such as Cascais, Carcavelos, Compit and Coastal Alentejo.
Already Hugo Santos Ferreira, president of APPII – Portuguese Association of Promoters and Real Estate Investors believes that there is “a change of paradigm of the luxury real estate market, mainly for the activity that today Portugal has with the American market and the Brazilian market”.
Houses with hotel luxuries
“I think Branded Residences are a good bargaining chip, that is, Portugal can offer a number of things, but you can’t have“ very high luxury service ”products. “But it can offer what is called ‘Branded Service’, ‘Branded Residence’,” with services very linked to large hotel chains, he said.
João Cília explained that “there are two types of players in this segment of tourist houses with luxuries: operators developed by the real estate promoters themselves for the purpose of exploiting the enterprises, developed by themselves, or large hotel chains, to whom prosecutors attribute the tourist exploitation of the project.”
Pedro Fontainhas believes that “the luxury real estate market is generally expanding”, citing recent studies that “indicate that luxury houses prices in Lisbon should rise about 4.5% in 2025, with a 5% increase in the national segment revenues at national level”. For the associative leader, “Lisbon and Porto continue to consolidate themselves as prime zones, while some peripheries of these cities emerge as new investment centers.”
For João Cília, “there is a growing interest from foreign customers in this type of projects.”
In addition, he said, it is facilitated “the monetization of the apartment when customers are abroad,” because they can put it “to exploration immediately.”
Still, it indicated, “there are also a large number of Portuguese who use tourist residences as a way of acquiring a second vacation, as it allows you to use the house or apartment in some periods and monetize the investment with the placement of the property for tourist exploration when they are not using it”, being a “way to guarantee a holiday home, whose financing is paid for the tourist exploitation of the property”.
The manager also said that “given the positive cycle of the real estate market, these investments have generated significant added value if the customer later wants to resell the property.”
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