In the ever-evolving landscape of global real estate and hospitality, branded residences have emerged as the coveted choice for those seeking a seamless blend of comfort and privilege.
It’s no surprise then that many of the world’s leading hotel brands have branched out into real estate, coupling property sales with their facilities and level of service. Six Senses, Ritz-Carlton, W Hotels and Aman are just a few.
But how would this concept work in a market where, from an owner’s perspective, short-term rentals are no longer allowed?
Enter Portugal, which has positioned itself as a destination of incredible potential for the burgeoning branded residences trend. Firstly, it has the numbers. Tourism income has more than doubled in the last 10 years, up from €10.2 billion in 2010, to €23.3 billion in 2022. However, it’s how much those people are spending that’s a better indicator of potential. Since 2019, the average tourism spend per capita has risen by a whopping 20%.
The Airbnb market however is under strict control. It’s now almost impossible to purchase a property and obtain the necessary licence required to rent it out on a short-term basis. This is why a new curated collection of branded residences is so exciting for Lisbon.
One factor that unites the discerning tourist, the global nomad, and the entrepreneur is that they want to experience the culture of a destination via accommodation that still connects to its locality and doesn’t seek to disconnect from its surroundings like a hotel can. For the owner, purchasing a branded residence helps them get around the rental income restrictions. This enables them to have a property they can visit as little or as much as they like, whilst generating income of up to 6% net of the purchase price.
Portugal's brand-related success stories aren’t limited to just the real estate or leisure sectors though. Arguably, they’re behind the curve. The allure of the country for renowned brands began to gain momentum around 2010 during its recovery from an economic crisis, attracting foreign companies, startups, and innovators. Lisbon, a burgeoning hub for technology and a host of world-class events like the Web Summit, has not only become a hotspot for office spaces but also a luxury destination for fashion brands. Avenida da Liberdade, akin to the Champs Elysées, boasts the presence of iconic labels such as Cartier, Prada, Versace, and Bulgari, contributing to the city's reputation as one of Portugal's most luxurious destinations.
The hotel sector sings the same hymn and matches the tourism statistics. Lisbon welcomed 14 new hotels in 2022, with an additional six slated for 2023, predominantly falling within the 4 and 5-star categories. This upward trajectory has not escaped the attention of the globally recognised CR7 brand, a collaboration between Cristiano Ronaldo and the Pestana Group, marking its presence in the hospitality sector with hotels in Portugal and beyond.
As Portugal embraces major global brands, branded residences find fertile ground to flourish. According to Savills, the total offer in Portugal has surged by 100% in the last five years, aligning with the 170% global increase over the past decade. This growth is not solely driven by hotel chains but also by real estate developers, investors, and luxury fashion and automotive brands.
The appeal of branded residences in Portugal is rooted in the country's exceptional quality of life within a cosmopolitan environment that retains its authenticity. The pandemic and the rise of remote work have further amplified Portugal's attractiveness, with the country ranking among the top choices for remote workers. A recent study by Flatio revealed that 27.1% of respondents selected Portugal as their primary destination for digital nomads, with Lisbon standing out among Europe's main cities.
Investing in a branded residence in Lisbon not only presents an opportunity to enter the rental market but also attracts buyers seeking a permanent residence with the allure and amenities of a 5-star hotel.
Ando Living, a new player in Lisbon's branded residence landscape, is poised to redefine next-generation living in Portugal and beyond. Drawing inspiration from international references like Soho House, Ando Living offers a collection of properties with access to exclusive clubs, homes, and apartments worldwide. The heart of Ando Living lies in its Clubs, designed to foster connections among residents and cultivate a community with shared interests while embracing the spirit of the neighbourhood and the city's lifestyle.
Ando Living's Clubs feature restaurants with local chefs, bars, concept stores, spas, and gyms with pools, ensuring an unparalleled hospitality experience. Co-working spaces, rooms for private events, and concierge services further enhance the residents' experience in a city ripe for exploration.
The residences, sold fully furnished and decorated by renowned international architecture and interior design firms, come with professional management, ensuring 24/7 reception and security, along with a range of on-demand services.
The inaugural projects from Ando Living are set to launch and are available for sale through Athena Advisers. Four magnificent projects, including Alfama Club, Liberdade Club, Augusta Townhouse, and Santos Townhouse, offer a unique lifestyle immersed in the charm and history of Lisbon's centennial buildings. Beyond the allure of luxury living, these residences present various rental opportunities for short, medium, and long-term stays, along with different management models catering to lifestyle seekers and savvy investors alike.
Athena Advisers can help you find the perfect property and guide you through the entire buying process and rental opportunities.