Branded residence pipeline set to exceed 2,000 by 2040

Branded residence pipeline set to exceed 2,000 by 2040

Waldorf Astoria Residences, Costa Rica [Credit: Savills]

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Worldwide: In its latest report, Savills Global Residential Development Consultancy is forecasting a year-on-year growth of 24 per cent for global branded residences by the end of 2026.

The report reveals expected annual growth across every major region, led by the Middle East & Africa (+51 per cent), followed by Europe (+25 per cent), Asia Pacific (+19 per cent) and the Americas (+18 per cent).

Savills further predicts that contracted pipeline is set to surpass 2,000 projects across more than 100 countries by 2040.

At over 30 per cent of completed global supply, North America remains the largest completed market. However, its growth is being outpaced by several emerging regions, such as Asia Pacific and Middle East & Africa. According to Savills’ analysis, Middle East & Africa is the fastest-growing region, with supply forecast to increase by 255 per cent by 2040.

The United Arab Emirates maintains its lead with four times more projects than its closest rival. However, Saudi Arabia and Egypt have shown strong growths by over 450 per cent and 800 per cent respectively, with strong pipelines in Morocco and South Africa.

Marriott continues to lead at a parent-group level with over 350 completed and pipeline schemes, almost twice the number of Accor, which ranks second. At individual brand level, The Ritz-Carlton, Four Seasons and St. Regis takes the top three spots, with Waldorf Astoria and Banyan Tree making the top 10 for the first time.

Standalone projects now account for 36 per cent of the global pipeline, up from 33 per cent in 2025.

When it comes to non-hotel brands, design brands such as Pininfarina lead in terms of both completed and pipeline schemes, with fashion brands set to take a larger pipeline share by 2040.

The global average premium of a branded residence is now at 38 per cent, up by five per cent than that of 2025. Premiums in established cities (those with 15 or more competed schemes) and emerging cities (those with between three and 14 completed schemes) stand at 28 per cent and 30 per cent respectively, while in new cities (with fewer than three schemes), the average premium is 61 per cent. In resort and leisure locations, the average premium is 40 per cent.

“Branded residences are fast evolving from what was, only a decade ago, a relatively niche proposition into a truly global real estate sector in its own right,” said Louis Keighley, head of Savills Global Residential Development Consultancy. “The question is no longer whether the sector will grow but where that growth will create the greatest opportunities. With greater scale comes greater competition, making the fundamentals behind each development more important than ever.”

Highlights:
  • Global branded residences are forecast to grow by 24 per cent in 2026. Savills expects year-on-year growth across every major region, led by the Middle East and Africa at 51 per cent, Europe at 25 per cent, Asia Pacific at 19 per cent, and the Americas at 18 per cent.
  • The global development pipeline is set to exceed 2,000 projects by 2040. Savills forecasts that these projects will span more than 100 countries, with the Middle East and Africa leading regional growth.
  • The Middle East and Africa is the fastest-growing branded residence market. Supply in the region is forecast to increase by 255 per cent by 2040, while Saudi Arabia and Egypt have recorded strong pipeline growth.
  • Marriott leads branded residence development globally. The group has more than 350 completed and pipeline schemes, while The Ritz-Carlton, Four Seasons and St. Regis rank as the leading individual brands.
  • Branded residences command an average global price premium of 38 per cent. Savills reports that premiums are highest in new cities (61 per cent) compared with 28 per cent in established cities and 30 per cent in emerging cities.
  • Standalone projects are also gaining share, accounting for 36 per cent of the global pipeline.

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