Real estate developers have recently started to put luxury brands on their buildings in big metropolitan areas. Developers are finding out that international buyers are more likely to buy from developments that are tied to brand names that they recognize.
The Association of Realtors reported that foreign nationals are increasing purchases in the United States by a greater percentage. So to sell to the large international segment of buyers for the condo market, developers are forming partnerships with luxury brands for automobiles and apparel. Branding is especially important to international buyers because they are more familiar with a condo project’s brand than its developer or its address.
The developer of a branded condominium usually pays the brand 2 to 5 percent of the proceeds when the sale of each condo unit is closed.
Porsche Design, Aston Martin, Fendi, Missoni Baia, and Armani are just some of the well-known brands being used to brand condos in the Metropolitan areas of the United States, as well as the Ritz-Carlton Residences in Paradise Valley, Arizona. The buyers that we spoke to exuded confidence, just knowing that the brand name of their choice was behind the development.”