ETMarkets Smart Talk| Growing HNI aspirations and second-home demand to drive next phase of branded residences, says Savills India’s Shveta Jain

The rise of branded residences in India is no longer just a luxury trend but an emerging asset class shaped by evolving consumer expectations and lifestyle preferences.

In this edition of ETMarkets Smart Talk Livestream, Shveta Jain, Managing Director & Head of Residential Services at Savills India, explains how growing aspirations among High Net-Worth Individuals (HNIs), coupled with a surge in second-home demand post-pandemic, are poised to drive the next phase of expansion in this segment.

Speaking to Kshitij Anand of ETMarkets, Shveta highlighted that why branded residences are increasingly being valued not merely for their name association, but for the promise of hotel-grade service standards, design-led living, and long-term value preservation. Edited Excerpts –

Shveta Jain: Interesting question. Let me start by saying that although the conversation on branded residences is gaining momentum in India now, it is not a new concept globally.

The first branded residence came up in North America way back in 1980. In India as well, the concept is no longer novel. It is becoming a definitive asset class with its own economics and user expectations.

A few years ago, branded residences were treated more as a badge value or a feel-good factor, where developers primarily used the brand association to market their product and lend credibility.

However, today the market is much more demanding, and the value of a branded product is emerging from operational comfort.

Essentially, projects that demonstrate hotel-grade execution within private living spaces are the ones commanding and likely to deliver a premium.

There are two to three prominent formats of branded residences.

The first is a hotel coexisting with residences, where both are managed by the hotel operator.

The second is a standalone residential development that is managed and operated by a hotel brand.

The third involves lifestyle, wellness, or fashion labels affiliating with a residential development. The level of brand integration in all three formats is deep and adds immense value to the developer and, ultimately, to the consumer. I will refer to some of these benefits as we speak further.

Kshitij Anand: What opportunities do you see for both hotel and non-hotel brands to develop branded residential schemes across India, in both urban and leisure destinations?
Shveta Jain: Referring to the Savills APAC report, the APAC region accounts for 21% of the global branded residence supply, which is significant. The leading regions are North America, followed by the Middle East, and then APAC.

Within APAC, Thailand and Vietnam lead, followed by India. Despite our large and growing HNI population, India still lags behind Vietnam and Thailand, each of which offers almost double the inventory seen here. So, there is considerable room for growth in the Indian market.

There are compelling value propositions for developing both hotel-led and non-hotel-led branded residences. In urban hubs, branded developments can serve as primary residences for the growing HNI population.

In regional or leisure destinations, branded residences are likely to be used as secondary homes and as sources of rental income.

Post-COVID, we have seen a significant increase in interest in second homes, and this space remains largely untapped in India. We expect the next wave of growth to emerge from secondary home locations, where branded residences will increasingly come up.

Kshitij Anand: Let us shift slightly toward global brands. With non-hotel brands like YOO and Trump leading India’s branded residence landscape—contrary to global trends dominated by hotel brands—and the market projected to grow by 180%, how do you see India shaping the next phase of this segment’s growth?
Shveta Jain: Globally, branded residence inventory is led largely by hotel-branded developments. However, in India, as per our report, non-hotel players have so far dominated this space, with YOO and Trump being the top names.

The branded residences market in India is indeed expected to grow by 180%, as you mentioned, and Vietnam, Thailand, and India are among the top 10 markets.

In India, particularly with the growing HNI population, there is increasing demand for convenience, lifestyle, wellness, and an overall better quality of life and services.

This is driving the demand for branded residences. India is increasingly witnessing a shift toward uber-luxury homes. Branded residences, with predictable service standards and build quality, cater well to this aspiration.

For buyers, the value is not just in the brand tag, but in the convenience and quality of living offered. In recent times, we have seen a new wave of launches in metros—both hotel-run branded residences as well as standalone developments managed by leading hotel operators. The demand is largely driven by end-users seeking a global lifestyle experience.

Kshitij Anand: At the beginning of our conversation, you mentioned design as a key factor in the branded residences space. How are developers benefiting from partnering with design and hospitality-led brands? And in what ways do such collaborations help them differentiate their product?
Shveta Jain: Developers are increasingly seeing merit in partnering with brands that are both design- and hospitality-led. Such collaborations allow them to differentiate their product through a more superior final offering, along with the promise of value preservation. This is an important aspect for any buyer paying an entry premium.

When developers work with established brands, they benefit from the vast experience these institutions bring. Their processes and operational efficiencies have been refined over time, which adds significant value. This value addition ultimately enhances saleability.

Additionally, when developers are trying to create a differentiated product in a competitive market, the brand association helps create the required impact. We have seen several strong success stories over the past four to five years, where developers have been able to command a premium simply due to brand affiliation.

Kshitij Anand: Let us now look beyond the show aspect. Globally, brand premiums typically hover around 20% to 30%. How does India compare, and what justifies the premium in the Indian market context?
Shveta Jain: India is emerging as a hotbed for branded residences. As I mentioned earlier, we are still lagging behind the two major powerhouses in Asia, which leaves significant room for growth.

We have also seen strong momentum in the luxury housing segment in India, and branded residences form an integral part of that luxury narrative.

We have seen the success of several branded residential projects, and it has been established that these developments can command a premium of about 20% to 25% over non-branded products. This is in line with global markets, where regions such as North America, the Middle East, Thailand, and Vietnam lead in terms of inventory and premium positioning.

So, the question of whether demand for branded residences in India is established — the answer is yes. And whether buyers see value in purchasing branded residences — the answer is also yes. The premiums developers are able to command here are comparable to what globally mature markets achieve.

Value preservation is another critical aspect. As an asset class, branded residences tend to be more resilient to market cycles. They are built with features and specifications that keep them future-ready, and the professional management associated with these developments supports long-term longevity and upkeep, which ultimately helps preserve value.

This creates strong desirability, especially for globally mobile buyers seeking predictability in service, and also for those looking at diversification.

Overall, branded residences will continue to draw attention from lifestyle-conscious buyers, home collectors seeking diversification, and investors looking for a hedge against market movements and superior rental yields.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)