New luxury real estate trend in Portugal: branded residences

Ombria Algarve

What are branded residences, and what is it like to live in one?

What sets a branded residence apart from a traditional luxury apartment in a high-end development? By definition, these are premium residential properties developed and marketed in collaboration with a renowned brand, typically a luxury hotel, resort, or fashion house.

“Who wouldn’t want to live in a home where concierge services are available 24/7, the gym is always spotless, the spa is just a call away, and gourmet meals can be delivered to your door? It’s like living in a permanent holiday. For those who work, tailored office services are also provided. And there’s more: indoor and outdoor pools, restaurants and bars with menus crafted by acclaimed chefs, meticulous property maintenance, and round-the-clock security,” says Pedro Fontainhas, Executive Director of the Portuguese Association of Residential Tourism and Resorts (APR). “It’s a kind of utopian dream, one that’s easy to get used to.”

Fontainhas highlights the significant growth of branded residences in Portugal in recent years, calling it a business model that successfully combines the exclusivity of private luxury homes with the services and prestige of major hotel brands. “For many, it’s the best of both worlds: a luxury home paired with five-star hotel-level service. This growing demand reflects the expectations of sophisticated buyers who value service as much as the property itself.”

Jorge Costa, COO of Quintela e Penalva | Knight Frank, echoes this sentiment, describing branded residences as a “winning concept” with the potential to transform neighbourhoods and attract an international audience seeking a new home in Portugal. He notes that these properties also appeal to local investors looking to capitalise on their value or individuals seeking unique housing solutions with a distinctive lifestyle.

“Exclusivity, convenience, comfort, and excellence in service”

Pedro Barreto, Head of Residential Development at Castelhana – a Dils company, adds that while branded residences are still an emerging market in Portugal, the number of projects associated with prestigious brands is increasing. “These developments target buyers who prioritise exclusivity, convenience, comfort, and exceptional service. They’re not purely residential properties but are often designed for temporary use.”

The properties, often tied to hotel brands and tourist licences, offer a mix of hotel-like services and residential comfort. Common amenities include swimming pools, landscaped gardens, fully-equipped gyms, concierge services, cleaning, and maintenance. Some even feature private chefs, restaurants, bars, meeting rooms, and event spaces, creating an enriched living experience.

Are Portuguese buyers investing in branded residences?

While this market segment is largely driven by international buyers, Pedro Fontainhas notes a growing interest among high-net-worth Portuguese individuals. These properties appeal to foreign investors seeking a lifestyle that combines luxury living with world-class services, but domestic interest is also on the rise.

Pedro Barreto highlights that branded residences attract both local and foreign buyers due to the assurance provided by a reputable brand. “A brand guarantees effective management, potential returns, and high service standards, offering an elevated living experience. This extra layer of security often makes the property more appealing and ensures its value appreciates over time. Portuguese buyers remain a key market in real estate, and branded residences are no exception.”

Ombria Algarve

Savoy Residence | D’Ávila AFA Real Estate

Branded residences in Lisbon

Lisbon is increasingly becoming a hub for branded residences, with several projects now coming to fruition. One notable example is the Savoy Residence | D’Ávila, the first development by the brand on mainland Portugal, following three successful projects in Funchal, Madeira.

“Savoy Residence developments are part of the AFA Real Estate portfolio and stand out for offering homes that provide a luxury experience akin to a hotel, whether for living or renting. In addition to their physical characteristics, these residences optionally offer access to the facilities and services of the Savoy Signature hotel collection, renowned for its excellence in hospitality,” explains Victor de Sousa, General Manager of AFA Real Estate.

Across its four developments, there are 279 luxurious apartments, each featuring exclusive interior design and areas ranging from 50 to 300 square metres (m²), with some reaching up to 400 m² when including balconies, gardens, and terraces.

“The apartments are fully equipped, all bedrooms are en-suite, and there is one parking space—usually in a private garage—for each bedroom. Rooftops, solariums, pools (shared and private), gyms, and 24-hour reception with concierge and security services ensure comfort and convenience with the signature hotel-like touch that defines this concept,” adds de Sousa. Prices range from €400,000 to €3.6 million.

Victor de Sousa is confident that this is a thriving market in Portugal. “People increasingly seek differentiation and quality, not only in finishes but also in location, focusing on both their comfort and the investment’s potential for appreciation.”

Savoy Residence | D’Ávila AFA Real Estate

More branded residence projects on the horizon

These are just two examples of branded residence projects in Portugal, most of which are “associated with hotel brands,” notes Pedro Barreto. He highlights that the Algarve stands out as the region with the highest concentration of such developments. Alongside the Viceroy Residences at Ombria Algarve, he lists Pine Cliffs, W Residences, Wyndham Grand Residences, Palmares Resort Residences, and Dom Pedro Residences. “Other examples in different parts of the country include the Hyatt Residences in Belém (Lisbon), Intercontinental Cascais-Estoril Hotel Apartments, Tivoli Avenida Liberdade Residences, Sheraton Cascais, and Vila Galé Sintra.”

Looking ahead, Barreto predicts further growth in this market, with new developments such as Hilton Cascais Residences in Carcavelos, Ando Living units, and a new project under the Karl Lagerfeld brand, all located in Lisbon.

"A lifetime ticket to luxury and comfort"

Pedro Fontainhas emphasises that these investors aren’t just buying a house; they’re acquiring “a complete experience, almost like a lifetime ticket to luxury and comfort, without ever having to worry about the mundane details of daily life.”

“For many, this type of property is both a financial and emotional investment. There’s something undeniably appealing about owning a residence that carries the seal of a renowned international brand, offering not only quality but also a prestige that’s difficult to quantify,” concludes the APR’s Executive Director.