Costa del Sol leads European market for luxury residences managed by big-name hotel chains

Spain and the Costa del Sol in particular are driving the rise in luxury residences managed and offered by big-name hotel chains. This exclusive offer is among the main transformations in the world of travel. According to data provided by the branded residences monitor report, there are 2,041 branded residential and tourist units that combine the privacy of a home with the services of five-star hotels in Spain. Although the study will be made available in September, the preview indicates that Marbella and Madrid account for the majority of these properties, promoted by brands such as Mandarin Oriental, W Hotels, Fendi and Dolce & Gabbana.

According to the report, Malaga province holds 62% of the share of this offer in Spain. "The combination of a privileged climate, high international demand and a consolidated ecosystem of premium tourism has driven the arrival of brands such as Fendi, Dolce & Gabbana, Karl Lagerfeld and W Hotels to Malaga."

This rising trend was originally conceived in the US in the early decades of the 20th century, but it has accelerated its growth in Europe in recent years. In 2025, Spain and Portugal concentrate more than 4,000 units distributed in 50 developments worth more than 5.2 billion euros.

Managing director of Property Partners España Felipe Reuse said: "Clients are no longer just looking for square metres and location: they want experience, services and a brand to back up their investment. That's what branded residences provide. The residential proposals of the Italian luxury brand Fendi in Marbella or the Mandarin Oriental chain in Madrid are just the tip of the iceberg of everything that is yet to come, because this residential typology, which is still taking its first steps in Spain, still has a long way to go in cities such as Barcelona, Madrid or, above all, in the Balearic Islands."

Closely following the Costa del Sol, Madrid has established itself as the second national epicentre of these branded residences thanks to iconic projects such as Mandarin Oriental Residences Madrid in the Salamanca district or Banyan Tree Residences Madrid in Chamberí. These projects present a novel design of urban living.

Rising market

In addition, advanced data from the Branded Residences Monitor report shows that the average value of these residences under development in Spain has grown by 58.77% compared to completed projects, which demonstrates the strength of this expanding market. It is estimated that, by 2027, more than 2,000 units will be added to the 2,000 units that Spain currently has, especially in the Balearic Islands - the region where this type of property will grow the most.

Property Partners - an international real estate brokerage firm with more than ten years of experience, specialising in the management of residential and commercial properties with a presence in seven countries, including Chile, Argentina, Uruguay, Peru, Miami, Dominican Republic and Spain - has identified this trend as one of the most relevant in the premium segment for its redefinition of the concept of luxury and believes that branded residences will be key in the reconfiguration of the high-end market. "Beyond their services, these residences promote an exclusive lifestyle, where every detail is designed to elevate the everyday experience. Although they still represent a small percentage of the total real estate stock, their cultural, architectural and economic impact will be increasingly evident," the company states.