A niche, but growing housing segment — branded homes — is gaining prominence in India. As urban consumers now seek fashionable amenities in their residences, these luxurious apartments are combined with hospitality services provided by the likes of Hyatt, Four Seasons, Le Meridian and JW Marriott, renowned globally for their superior hospitality services. Some other apartments are joint-ventures with well-known fashion houses such as Armani and Swarovski, which lend their names while designing the interiors. Lodha (Lodha Belmondo, Pune), Nirmal Group (Nirmal Sports City, Mumbai), Sunteck (Sunteck City and Signature Island, Mumbai) are some of the renowned developers in this segment in India.
Indian developers started to tie-up with international brand names from early 2010, and the trend continues. Typically, projects in this category resort to less number of units, to maintain exclusivity. So how does a ‘branded home’ differ from a luxury home? A Shankar, National Director, JLL, India, says luxury homes offer exclusive luxury features in terms of location, specifications, amenities, and facilities. “As a luxury project tying up with a brand is not possible, developers partner with companies to offer specific services (spas and concierge services) by internationally renowned firms. ” Branded homes are more like plush hotels with hospitality services from the finest brands. They are priced at least 15-20 per cent higher than a luxury home, and sometimes even 30-40 per cent higher.
The Delhi- NCR region, Mumbai, Bengaluru, Pune, and Hyderabad to a certain extent have been witnessing the proliferation of branded residences in India. Although the market in Chennai has not witnessed much traction in this segment, developers are aggressively trying to set foot into this segment. T. Chitty Babu of Akshaya, for instance, is developing a Disney themed project, a first for Chennai. “This project is in the affordable sector, and is a large township, so that costs can be managed. Branded homes come at a cost and land is expensive in the CBD area. The market has to grow to create a demand for such products,” he says. Areas like Adyar, Poes Garden, and Boat Club Road, have projects in the luxury segment, and a few luxury projects are in the process of being launched on the IT corridor, and ECR, considering there has been a sudden growth in the market, says Arun Kumar, MD, Casa Grande.
Priced above Rs. 5 crore, these homes, come with a host of state-of-the-art amenities. They are designed by renowned architects, which adds to their brand value, says city-based architect Xavier Benedict. “The design of such projects needs to be unique. Elegant, functional, and aesthetically pleasing buildings is what buyers look for.” These homes are situated in posh localities, and are equipped with integrated hotel-style services such as: 24-hour concierge and security service, CCTV monitoring, private elevators from secure underground parking, chauffeurs and porters, integrated entertainment systems, laundry, theatre and restaurant booking, and also shopping services.
As service and facility standards have risen in hotels, demand for similar standards in branded residences has followed suit, says Satish BN, Executive Director, South, Knight Frank India. “These prime residential properties have facilities for business meetings, restaurants and bars, private dining rooms, private cinemas and screening rooms, climate controlled wine cellars, wine tasting facilities and external wine consultation services.” Health and fitness suites are a key requirement and the level of service expected has risen over the years to include swimming pools, saunas and spa services as well.
The segment is growing and developers promise utmost comfort and luxury. The target and buyers of this segment belong to India’s super-rich section that have preference for convenience and value international hospitality and signature designer brands. Chandan Jain of Vijay Shanthi Developers, says, “Developers of branded luxury homes provide personal customisation to their buyers as long as the customisations do not detract from the overall project specifications, and aesthetics.”
Such high-end homes are definitely catching the eye of the super-rich, it is, however, important to note that only a small percentage of the population can afford such high-end living. While the average home-buyer could definitely be enthused by the idea of owning a home that comes with an Armani or a Disney tag, it is uncertain whether he can afford the huge premium in price associated with such brands, says G. Seshasayee, Chief - Business Development, Navin’s. Although branded homes are essentially targeted at luxury-home buyers, developers who have projects in locations that do not sell, could try this strategy to attract customers.
