Phuket’s property market has been undergoing a revolution of sorts in the past five years or so. An explosion of interest following the COVID-19 pandemic, spurred by a mix of factors, has resulted in a flurry of development in nearly every corner of the island. Investors can readily find everything from budget condos to extravagant estates and everything in between, including branded residences. Fitting into a specific niche, this sector is playing a more prominent role in the island’s luxury real estate scene. From hotel groups that everyone recognizes to boutique luxury lifestyle brands, developers create partnerships with them that promise more than just a place to live. They also seek to fetch premium prices, but are these branded residences worth the price tag?

What Are Branded Residences?

Branded residences are residential properties associated with a hospitality or lifestyle brand. Typically, these developments offer private apartments or villas that enjoy hotel-style amenities, property management, concierge services, and housekeeping. Sometimes they are on the grounds of existing resorts, while other times they are standalone developments. The terms of the partnership vary, but might be the brand that is responsible for managing the property, maintaining service standards, or simply licensing its name to the developer.

The Advantages

For buyers, the appeal is somewhat obvious: owning a luxury home under the umbrella of a reputable and proven brand with reliable services that is already established in the market. It’s the benefit of a known quantity. 

One of the biggest attractions is convenience. It can be a turnkey situation where owners may have access to concierge services, a maintenance team, housekeeping, and security. Additionally, if the property is within the resort grounds, owners or guests can often access restaurants, fitness facilities, and swimming pools without creating an all-inclusive scenario. It’s an even more attractive prospect for overseas buyers who would be inconvenienced by having to organize and manage a foreign property.

Some brands will also offer rental management, allowing owners to generate income when they are not using the property. As you can imagine, they will need to make it worth their while, so they will charge a premium for this service. Being associated with a well-known brand can also add to the resale appeal of the property. 

Paying a Premium

The biggest drawback of branded properties is cost. Branded residences almost always command a premium over comparable unbranded properties, and just how much depends on things like which brand it’s affiliated with, the extent of the facilities, and the services included.

The real question is whether paying this premium results in lasting value. A prestigious name can only do so much – it can’t make up for a poor location, lacking floor plan, exorbitant service charges, or lackluster property management.

Are They Worth It?

While a simple yes or no would be nice to offer, the answer is, of course: it depends. Phuket’s property market is highly varied. Different regions of the island have different vibes and attract different types of visitors, so the general location is key. The specific location is also key, especially things like its proximity to the beach, views, etc. In the right location, a branded residence can be a smart move and a worthy investment. If convenience is a top priority alongside having the benefit of included services and leveraging the premium lifestyle concept, then perhaps it’s worth it for you. However, if you find a property with a killer location, you have the bandwidth to organize and keep up with a management company, and don’t feel the added services of a branded residence are worth the cost, then going it alone might be a more financially savvy approach.