BAKU, Azerbaijan, November 5. The long-term value of branded residences should be based primarily on the quality of the building itself, as the added value associated with a well-known brand may not last throughout the property's entire lifespan, Guy Perry, a member of the UN Quality of Life Initiative's expert group.
He made the remarks on Thursday at the AIREX 2026 international real estate and investment exhibition in Baku, according to Trend's correspondent covering the exhibition.
He said buyers of branded residences should consider how the interiors will be kept up to date over time. He noted that hotels typically refurbish their interiors approximately every 10 years and questioned whether the same practice applies to branded residential properties.
"The building itself must stand the test of time. To me, a brand can provide an initial advantage when a project is launched, but I have concerns about its long-term value. We are talking about properties that people own for 10, 20 years or even longer. What will remain of the brand's value after 20 years?
For example, the value of properties such as The Sherry-Netherland and The Pierre in New York is partly attributable to their location and well-known brands," he said.
At the same time, the expert highlighted the high costs involved in maintaining the service standards and quality associated with five-star luxury hotels.
In his view, developers undertaking such projects should prioritize ensuring high building quality during the construction phase.
"A brand may add value for a certain period, but I am not sure this advantage will last indefinitely. I think that beyond a 10-year horizon, this premium should already be written off," Perry added.
