Branded Residences Can Command 20-40% Price Premium PASHA Real Estate
"One of the main advantages of branded residences is prestige. However, depending on the country and the characteristics of the market, brand recognition and familiarity with its products can also play an important role. Today, we see brands such as NH and IKA represented in the branded residences market. Therefore, consumer awareness and familiarity with a product can sometimes matter more than the developer's name," he said.
Gadimov said that branded residences in Azerbaijan and other markets where the company operates command a price premium of 20-40%.
According to him, hotel brands offer recognition and prestige, and most projects involving such brands also include a hotel.
"At the same time, partnerships with lifestyle brands, particularly Armani or Dolce & Gabbana, can significantly increase development costs. This is due to requirements for using specific furniture, materials and fabrics, which do not always translate into a corresponding increase in the project's value for the developer. PASHA Real Estate Group has been operating in the market for around 20 years, primarily in Azerbaijan, and has expanded internationally over the past five years.
The company is currently present in six countries, including Azerbaijan. When entering a new market, a developer may need 8-10 years to establish a reputation for delivering high-quality properties and ensuring their long-term value. In such circumstances, partnering with an international brand can be one way to raise the developer's profile and accelerate sales," he said.
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