Developers Attract with Luxe-Branded Condos
April 9, 2015
Just like cars, handbags, and jewelry, now homes are getting luxury design labels too.
In some markets, developers are partnering with major design labels – from Porsche to Giorgio Armani to Fendi – in an attempt to lure luxury and international buyers to their buildings. They're also finding they can charge higher premiums to their units because of the partnerships.
The Luxury Housing Market
For example, in Miami, buyers have already committed millions to be able to live in the Porsche Design Tower, even though the construction won't be completed until early 2016. Yet, the building is already almost completely sold out. The building will boast three car elevators, which can carry a car up 60 stories and slide it into an owner’s private garage. The owner can even remain in the driver seat.
"What we're selling is luxury," says Gil Dezer, the developer of the Porsche Design Tower, who is also working on another condo project known as the Armani Casa. "The buyers already know the brand. They like the style, they like the look and that's why they feel more comfortable buying it."
Also in Miami, the Chateau Group is constructing a building known as the Fendi Chateau – which is named after the Italian fashion house. The building is next door to Chanel, Gucci, and Tiffany boutiques.
Branded projects are attracting some international buyers who may not be as familiar with Miami's luxury housing market, Liam Bailey, global head of research at a real estate consulting firm called Knight Frank, told the Associated Press.
"There is a marketing benefit of having a brand that is recognized outside the market," Bailey says. "There is an element of trust."
Source: "Live in a Porsche? Designer Labels Draw Miami Home Buyers," Associated Press (April 1, 2015)
Updated: April 18, 2019