According to Mr. Ankit Kansal, Founder & MD, SKYE Hospitality, “In tandem with global trends, the branded residence market is picking up fast in India as well with more than 40% volume of supplies concentrated in Delhi NCR. Other prime markets include Mumbai (18.1%), Bangalore (16.2%), and Pune (11.6%). In addition to owning a prized asset, factors such as assurance of prior due diligence done by the brand, access to top tier facilities, state of the art design, and high rental & appreciation potential, are driving the demand in a positive direction”.

The branded residences segment largely operates on two models, i.e. either the “Branded Name Model” – where a renowned brand lends its name and charges a fee for it, or the “Serviced and managed amenities model”, wherein the brand (generally a hospitality entity) will partner with a top-notch developer to create a branded property. The hospitality entity offers and manages a wide range of services instead of the fee charged.

“Not just for the buyers, but branded property development has significant benefits for the developer and the brand as well. The developer enjoys unique positioning and benefits immensely by offloading the inventory at a premium price, The brand connotes to diversify its revenue stream and a natural progression of business, besides earnings from royalties and fee” Quoted Ms. Taran Chabra, Director of SKYE Hospitality. She is a seasoned professional from the hospitality industry who has been roped in by SKYE to spearhead its growth.

Numerous brands across the hospitality and non-hospitality sectors like The Leela, Four Seasons, Oberoi, Trident, Grand Hyatt, Yoo, Trump Towers, Versace, Mariott, and many others have ventured into the Branded Residences market.

“The branded residence segment is one of the key asset types to watch out for, as the potential of growth is seemingly immense. There is a huge pipeline of properties all over India that can be converted into branded residences, both in metros as well as tourist locations. In contrast, the present supply is only a few thousand units. Looking at the current dynamics, we have formed SKYE, which will work as a fulcrum between developers, brands, and investors. SKYE will offer a wide range of services including market insights, development consultancy, and feasibility support.”