Luxury Housing Moves Beyond the World’s Major Gateway Cities
The global branded residences market is entering a new phase of expansion, with development increasingly moving beyond traditional gateway cities into coastal, island, mountain and other lifestyle destinations, according to Knight Frank’s Global Branded Residence Survey 2026.
Knight Frank says the sector has expanded sharply over the past decade, with the number of global branded residence schemes rising from 354 in 2015 to 903 at the end of 2025. The market is projected to pass 1,000 schemes during 2026, reaching approximately 1,088 developments and more than 170,000 units by year-end.
Based on projects currently in development, Knight Frank projects that the number of branded residence schemes will rise by more than 60% over the next five years, approaching 1,800 schemes and more than 300,000 units by 2031. The firm also notes that industry participants have disclosed around 200 additional pipeline projects for which scheme-level details were unavailable, suggesting the total market could move toward 2,000 schemes over the next five to 10 years as additional projects come forward.
The expansion is also changing where branded residences are being developed.
Liam Bailey, Global Head of Research at Knight Frank, commented: “The luxury branded residential sector is one of the strongest growth stories in global real estate. The market has trebled in size over the past decade, and we expect it to double again within the next five years. We believe demand will continue to absorb this new supply, but competition is intensifying. As a result, the pace of innovation across the sector is accelerating rapidly as brands seek to differentiate themselves and stay ahead of the pack, and as we discuss in the report this is leading to a redefinition of luxury for the residential sector.”
In 2016, fewer than four in 10 branded residence schemes were located outside major cities. Today, more than half are in coastal, island or mountain destinations, and Knight Frank’s identified pipeline suggests that share could reach 57% by 2028. More than half of new branded residence openings are now in non-city locations.
Knight Frank describes this movement beyond major urban centres as one of the defining shifts in the market. Lifestyle-led destinations including Marbella and the Costa del Sol, Al Marjan Island, Phuket Island and Aspen are attracting increasing development activity as the sector broadens its geographic reach.
The United States and Middle East Drive Supply
The United States continues to hold the largest concentration of operational branded residence stock, supported by established luxury housing markets and deep pools of wealth. At the same time, the Middle East has emerged as the sector’s most significant growth engine.
The Middle East accounts for 20% of projects globally and 25% of the pipeline, according to Knight Frank. Dubai remains the leading city market, with 175 schemes, while Abu Dhabi and Ras Al Khaimah’s Al Marjan Island are attracting an increasing share of future development activity.
Luxury Housing Escapes the City
The growth of non-urban markets is particularly evident in Europe. Spain is identified by Knight Frank as one of the sector’s most dynamic growth markets and the highest-ranked European country for pipeline development, excluding transcontinental countries. Madrid continues to strengthen as an urban branded residence market, while Marbella and the Costa del Sol are attracting developers and buyers seeking lifestyle-oriented locations.
The shift is not limited to coastal markets. Knight Frank says developers are increasingly looking toward alpine destinations as demand for high-service second homes grows. One&Only, for example, is scheduled to open its first French Alps resort in 2030, incorporating branded residences as part of the redevelopment of the historic Courcheneige Hotel in Courchevel.
In Switzerland, supply remains constrained by regulations governing foreign ownership and second homes. Knight Frank highlights Andermatt as a notable exception, where an exemption from certain foreign ownership restrictions has enabled the development of The Alpinist, a project scheduled to include 164 residences alongside a five-star hotel and extensive spa and fitness facilities.
Hotel Brands Still Dominate — But the Market Is Diversifying
Hotels remain central to the branded residence model, although their share of future development is declining.
Marriott International, Accor, Hilton, Four Seasons, Banyan Group and IHG collectively account for just over 40% of branded residence developments worldwide, spanning operational and pipeline projects. Hotel brands account for approximately 70% of operational schemes globally, but that share falls to about 60% when pipeline developments are included.
Knight Frank says the change reflects the growing influence of non-hotel players, whose share of the market is expected to increase as new forms of branded and service-led residential development emerge.
The report describes branded residences as a laboratory for new approaches to luxury living, with developments increasingly incorporating wellness, hospitality and lifestyle services. Emerging concepts include longevity clinics, hyperbaric oxygen therapy, cryotherapy, sound-healing studios and other wellness-focused facilities, alongside features such as private sky garages for residents’ vehicles.
Wealth and Mobility Reshape Demand
Knight Frank’s research also points to increasing international mobility among affluent buyers. The firm’s survey covers more than 200 brands across 90 countries and identifies a diversifying global market as increasingly mobile wealth contributes to the emergence of new luxury residential destinations.
The report notes that ultra-high-net-worth individuals now hold an average of 3.8 properties, up from 2.9 a decade ago, while international flight volumes are forecast to reach 13.2 million in 2026, above pre-pandemic levels and 19% higher than in 2023.
Asia-Pacific is also entering new territory. Knight Frank highlights Aman’s debut at The Skywaters in Singapore, while Vietnam has developed the world’s fifth-largest branded residence pipeline. India has expanded from fewer than seven branded residence schemes before the pandemic to 34, according to the report.
Vietnam’s expansion reflects rising domestic wealth, tourism and the arrival of international luxury brands. Knight Frank reports that Vietnam’s ultra-high-net-worth population increased from 954 individuals in 2021 to 1,233 in 2026 and is projected to approach 2,000 by 2031.
A New Definition of Luxury
As branded residences expand into new markets, Knight Frank argues that the nature of luxury is also changing.
The report identifies a shift away from amenities that can be easily replicated toward attributes such as location, provenance, judgment and human connection. Wellness, meanwhile, is increasingly being incorporated as part of the underlying infrastructure of residential developments rather than treated simply as an additional amenity.
Michelle Mastrobattista, Founder, Publisher & Editor of Branded Living said, “The real driver is a shift in what buyers expect a home to do for them. They’re purchasing service culture, brand trust, and a turnkey life that follows them across borders. The brands that understand that distinction are the ones who’ll succeed over and over again.
“As the sector approaches 2,000 schemes, the label ‘branded residence’ alone stops being a differentiator. Buyers are smart, and they can tell the difference between a genuine brand ethos and a logo on a lobby wall. They are also hyper aware of a brand’s impact both in the community and globally. The next five years will reward the projects that deliver substance behind the name and a net-positive investment.
What we’re watching isn’t just a real estate trend, it’s a change in how globally mobile buyers think about home. Brand affiliation offers something a traditional address can’t: consistency, community, and recognition anywhere in the world. That’s why this growth is spreading beyond resort markets into cities, and why we expect demand to keep pace with the pipeline.”
The result is a global branded residence sector that is becoming larger, more geographically diverse and less dependent on traditional city markets.
The identified development pipeline points toward nearly 1,800 schemes and more than 300,000 units by 2031, while the broader pipeline could ultimately push the market toward 2,000 schemes as additional projects come forward.
The next phase of luxury residential development is therefore increasingly extending beyond the world’s established gateway cities into the coastal, island, mountain and lifestyle destinations where affluent buyers are seeking a combination of property, service, wellness and experience.
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