In a new twist to the global real estate brands arena, hidden gems from the US are emerging as notable champions while Chinese brands grapple with significant declines in brand value, according to Brand Finance, the world’s leading brand valuation consultancy.
Prologis leads US real estate brands with significant rise in brand value, sees largest brand value growth with 75% to USD1.7 billion
Experiencing a remarkable 53% surge in combined brand value, totalling USD10.3 billion, the total value of US brands which made the top 25 most valuable real estate brands in our rankings are led by Prologis as the standout performer, with its brand value skyrocketing by 75% to USD1.7 billion. US real estate brands now contribute 13% to the total brand value of the top 25 rankings, demonstrating resilience amidst the thriving e-commerce industry, which boosts income for logistics warehouses. Following closely behind as 2nd fastest-growing real estate brand is Mitsubishi Estate, with a 24% year-on-year growth in its brand value, now standing at USD1.7 billion.
Chinese brands witness a downturn amidst market challenges
In contrast, the collective brand value of Chinese real estate brands, representing about 77% of the listed brands, has plummeted by 31% to USD60.5 billion. This decline is attributed to various factors, including lingering effects of China's previous real estate debt issues, softened demand in the housing market due to consumer hesitancy towards property purchases, and unfavourable forecasts concerning the economic repercussions of a slowing property market.
Vanke defends position as most valuable real estate brand
Vanke remains steadfast in its position as the most valuable real estate brand globally, despite experiencing a 21% decrease in brand value, now at USD10.5 billion. Holding onto the top spot, it previously surpassed Country Garden in 2023. Its resilience is evident amid various market challenges, including broader debt issues.
Emaar remains strongest real estate brand
Emaar, headquartered in the UAE, maintains its position as the strongest real estate brand ranked this year, with a brand value of USD2.6 billion, albeit experiencing a slight 5% decrease. It continues to uphold its AAA- brand strength rating, demonstrating robust performance across various key brand research metrics, including familiarity, reputation, and online presence.
In terms of brand strength, other real estate brands which also achieved an excellent brand strength rating of AAA- include JLL, CBRE and Vinhomes.
Richard Haigh, Managing Director of Brand Finance, remarked:
"Built on a foundation of excellence, supported by awareness activities as simple as its name emblazoned on dozens of its tower blocks, and capped off with fanfare from the burgeoning recognition of the UAE as a centre of trade, it is no surprise EMAAR has emerged as the strongest real estate brand. It's got the basics sorted, get the brand known, deliver on your promises and the rest will follow.”
Vanke has the highest Sustainability Perceptions Value at USD654 million, while Country Garden holds the Highest Positive Gap Value at USD18 million
Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index, which determines the role of sustainability in driving brand consideration across sectors. In the real estate sector, sustainability drives 6.5% of customer consideration. Brand Finance’s perceptual data also offers insight into which brands global consumers believe to be most committed to sustainability.
The Index displays the proportion of brand value attributable to sustainability perceptions for individual brands. This Sustainability Perceptions Value is the financial value contingent on a brand’s reputation for acting sustainably. From here, Brand Finance’s perceptual research is analysed alongside CSRHub’s environmental, social and governance (ESG) performance data to determine a brand’s ‘gap value’. This is the value at risk, or value to be gained, arising from the difference between sustainability perceptions and actual performance.
The 2024 Sustainability Perceptions Index finds that in the real estate sector, Vanke has the highest Sustainability Perceptions Value of USD654 million.
In assessing the gap between sustainability perceptions and performance, Country Garden has the highest positive gap value of USD18 million among real estate brands. A positive gap value means that brand sustainability performance is stronger than perceived: brands can add value through enhanced communication about their sustainability efforts, so that perceptions are raised to fully account for the brand’s actual sustainability performance. Country Garden’s gap value suggests that it could generate an additional USD18 million in potential value for shareholders through enhanced communication of its impact and accomplishments in sustainability.