Branded Schools in Residential Property Development

The allure of branded residences has been a dominant trend, with luxury brands and 5-star hotels lending their names to high-end apartments and villas, each boasting lavish amenities and designer interiors. First came the hotel brands- Four Seasons, St Regis, One & Only. Then came the Fashion brands: Gucci, Fendi, Versace, Bulgari, Ellie Saab – all making moves into real estate. And most recently, the luxury car brands including Bentley, Bugatti, Aston Martin and Porsche.

In 2012, Michelle de Havilland, CEO of BlackGate and the former Global Marketing Director at YOO Residences – the world’s largest branded residences company – pioneered the first global research, into the Actual Sales metrics from branded residences comparative to non-branded residential in major global cities. The data was undeniable: a near 30% uplift in values. However, this varies by location, with the largest premiums typically found in emerging markets. It set the property world alight and moved the residential market on an unprecedented course of prime development. From London to Dubai, from Miami to Mauritius, the branded residences market boomed and is in fact, arguably, saturated!

As the market matures, differentiation becomes key, developers are looking towards more sustainable and impactful value propositions. Discerning buyers are increasingly seeking something more meaningful – a sense of community, purpose, and legacy. Anchoring residential and mixed-use developments around elite schools has emerged as a strategy that not only enhances property values but also fosters community engagement and aligns with long-term societal values.

Michelle believes that Elite Education is the next frontier in residential value creation. Promising to redefine the concept of exclusivity and elevate the residential experience to unprecedented heights with academia and sports centred around mental & physical wellness. Welcome to the era of Branded Education Residential Development. Drawing from her experience pioneering the branded residential market, Michelle recognises the similarly transformative power of education in shaping real estate value. “In every city worldwide, the reputation of schools and universities holds as much weight as the label of one’s car. Almost everyone in the world has heard of Eton as much as they have heard of Elon!

United Kingdom

In the UK, proximity to top-tier educational institutions like Eton or Harrow can increase property values by up to 20%. Families prioritise access to prestigious education, driving demand in these areas.

United Arab Emirates

The UAE’s focus on creating knowledge-based economies has seen a surge in demand for properties near elite international schools, with developments around such institutions seeing a price premium of 10-15% compared to those that are not.

Paris, France

Parisian properties near renowned schools like Lycée Louis-le-Grand or Lycée Henri-IV command higher prices, with premiums ranging from 15-25%, underscoring the value parents place on elite education.

United States

In the USA, homes in districts with top-rated schools can sell for a premium of up to 30% over similar homes in areas with average schools, demonstrating the significant impact of education on real estate values.

South Africa and Nigeria

Both South Africa and Nigeria see similar trends, with properties near prestigious schools fetching higher prices. In these markets, the premium can range from 20-30%, reflecting the high value placed on education in emerging economies.

While branded residences continue to attract a premium for their luxury services and amenities, the premium for proximity to elite schools outpaces them. Real estate anchored around educational institutions not only benefits from immediate value uplift but also enjoys sustained demand, driven by the perennial importance of education. The tangible benefits of access to top-tier schooling—such as better educational outcomes and community engagement—offer a more substantial and enduring value proposition than the luxury and convenience offered by branded residences.

“Elite educational institutions not only anchor communities but also significantly enhance the value of homes in their catchment areas”, says Alex McGrath, Founder and CEO of Castlegate Education.

Castlegate works with some of the UK’s premier education brands as they seek to expand their global footprint. These schools have, over many centuries in some cases, developed expertise in not only academic pursuits, but world class sports, music, and creative and performing arts. “It may come as a surprise that 36% of British athletes that won medals at the Rio Olympics in 2016 had been educated at the UK’s private schools, and 67% of British Oscar-winning actors are privately educated – a sector which only educates 7% of British children. These schools add significant academic value, but for those children whose passions lie beyond the classroom, what they provide is opportunity – first class coaching and instruction to achieve the pinnacle of their aspirations”, adds McGrath.

Creating Communities of Like-minded People

In increasingly polarised times, people are seeking to live amongst like-minded neighbours who share their values and aspirations. This major societal shift presents developers with a unique opportunity to create communities centred around education and healthy pursuits.

By embracing the trend of branded schools, developers have the opportunity to create communities that not only reflect luxury brands but also embody the values of excellence, inclusivity, and lifelong learning, and teaching young generations about a more sustainable way of life, not just at the tertiary level but from K-12. “By anchoring developments around healthy pursuits such as school and sports, we set a far healthier future for the next generation” says de Havilland.

“In a recent conversation with the Managing Director of an exclusive European marina development, I was delighted to hear that what he most aspired to for his community was a school which could provide excellence in Music and the Creative Arts”, adds McGrath. “He asked me to find a school which could provide excellent academics, but had expertise in Music in particular. British schools with such capability are legion. It has been easy to draw up a shortlist”.

Led by these two CEO’s, Michelle de Havilland of BlackGate, and Alex McGrath, of Castlegate, a new Education Alliance team has been forged at the forefront of education-centric real estate development. The alliance aims to advise developers, governments, investors, and funds on the future of education-centric real estate. It’s a new concept of merging the best of Education and the best of Property Development into a powerful consulting partnership to bridge Developers with Schools to deliver exceptional educational environments that underpin communities.

The BlackGate-Castlegate Alliance brings over 50 years of collective experience in the real estate and education sectors, ensuring a holistic approach to education-centric development.

Developing schools in mixed use and residential projects requires a unique skillset that most Developers and Schools are individually not equipped to deliver. There are myriad considerations, from choosing the right school brand to determining capacity, curriculum, sports offerings, and more. The ensuing calculations are considerable and require a more forensic level of expertise to ensure parents, teachers, scholars and communities are supported.

Anchoring residential and mixed-use developments around elite schools presents a compelling value proposition, outpacing the benefits offered by branded residences. This approach not only enhances property values across various markets but also aligns with long-term societal goals, fostering communities centred around education and personal development. As the real estate market evolves, integrating educational institutions into development projects will likely become a cornerstone strategy for value creation and differentiation.

The Alliance is leading the way as the future of luxury living is set to be defined by education, empowerment, and enrichment.

About BlackGate: BlackGate is a global real estate advisory, development and investment firm, known for its innovative projects across residential, commercial, and hospitality sectors.

About Castlegate: Castlegate specialises in educational infrastructure and advisory services, with a proven track record in partnering with elite schools worldwide.

For more information, check out www.black-gate.co.uk or www.castlegate-education.com

For inquiries, please contact:

Michelle de Havilland, CEO, BlackGate
Email: michellevv@black-gate.co.uk
Phone: +44 7455431166

Alex McGrath, CEO, Castlegate
Email: alex@castlegate-education.com
Phone: +44 7707 308438

Source

Michelle de Havilland, CEO, BlackGate

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