Real Estate 25 2023

The annual report on the most valuable and strongest real estate brands

Brand Finance Real Estate 25 2023

Chinese real estate battles the ‘three red lines’ but looks to claw back as construction resumes

  • Vanke leaves Country Garden in the dust as most valuable Real Estate brand, valued at US$13.2 billion
  • Emaar is fastest-growing, up 29% at US$2.7 billion, and strongest real estate brand
  • Non-Chinese brands enter top 10 for the first time in 5 years
  • Sunac brand value demolished, falling 69% to US$1.7 billion
  • Vinhomes has highest Sustainability Perceptions Score, rated 5.29 out of 10
  • Vanke has the highest Sustainability Perceptions Value at US$1.3 billion

Vanke leaves Country Garden in the dust as most valuable Real Estate brand, valued at US$13.2 billion

Vanke (brand value USD13.2 billion) has overtaken Country Garden (brand value USD8.9 billion) to become global real estate’s most valuable brand. Despite reporting a decline in net profit for the first time since 2008, Vanke’s brand value increased by 2%.

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest Real Estate brands are included in the annual Brand Finance Real Estate 25 2023 ranking.

Richard Haigh, Managing Director of Brand Finance commented:

“In general, the real estate sector has seen some growth. However, Chinese brands have suffered due to falling CNY to USD exchange rates and poor debt signalling. Brands who have been forced to reduce forecasts or issue profit warnings have suffered more than brands perceived to have been more responsible with their debt in terms of brand value.”

Emaar is fastest-growing, up 29% at US$2.7 billion, and strongest real estate brand

Emaar (brand value USD2.7 billion) saw 29% year-on-year brand value growth to be the world’s fastest-growing real estate brand. Emaar has seized opportunities presented by a bullish market in the United Arab Emirates (UAE). Its portfolio of properties in Dubai’s most desired areas remains strong, with its USD2 billion acquisition of Dubai Creek Harbour offers substantial future profit potential. As a result of the acquisition, Dubai’s ruler, Mohammed bin Rashid Al Maktoum, has become Emaar’s second largest shareholder.

Emaar’s recurring revenue businesses also performed well in 2022. Emaar’s hospitality revenue grew 25% and its mall revenue by 8% following the strong return of tourism to the UAE post-pandemic. The brand’s enduring reputation appears to be well perceived by both domestic and international investors, and its sustained revenues and overall improved margins has resulted in its brand value increase.

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors. According to these criteria, Emaar is the world’s strongest real estate brand with a Brand Strength Index (BSI) score of 82 out of 100 and a corresponding AAA- rating.

Non-Chinese brands enter top 10 for the first time in 5 years

Since 2018, Chinese real estate brands have dominated the Brand Finance top 10 ranking. However, Brand Finance’s 2023 ranking saw US brand CPRE (brand value USD2.9 billion) and UAE brand Emaar (brand value USD2.7 billion) enter the top ten in ninth and tenth position. CPRE has seen rapid development in its logistics portfolio in the past year. Better-than-expected growth in its more cyclical businesses elements, alongside CBRE’s sale of valuable property, has had a significant positive impact on the brand’s revenues and resulting brand value growth.

CPRE also claims to take its leadership role in the real estate industry seriously, including its role in sustainability related matters. Globally, buildings are responsible for 40% of carbon emissions. In line with the Paris Agreement, CPRE aims to achieve 100% renewable electricity by 2025 and net-zero emissions by 2040. In 2022, CBRE announced its intention to further scale up its solar project development.

Sunac brand value demolished, falling 69% to US$1.7 billion

Sunac’s brand value (down 69% to USD1.7 billion) has suffered significantly at the hands of the volatile Chinese real estate market. Following a huge drop in revenues and a series of profit warnings, the resulting fall in forecast revenues means that stakeholder perceptions have deteriorated this past year. Sunac also experienced a suspension from the Hong Kong Stock Exchange following the resignation of its auditors and its inability to publish audited financial results. With Sunac grappling with large debts, creditors have been losing faith in the brand’s ability to operate.

Vinhomes has highest Sustainability Perceptions Score, rated 5.29 out of 10

As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.

Vietnam brand Vinhomes (brand value USD1.7 billion) is committed to its Net-Zero megacities strategy, striving for net-zero emissions by 2050. Vinhomes has the highest Sustainability Perceptions Score at 5.29 of any brand included in the Real Estate 25 2023 ranking. By optimising energy-efficient technologies, designing buildings that maximise natural light, and enhance ventilation, Vinhomes’ sustainable practices are a guiding principle for the brand’s future development.  

Vanke has the highest Sustainability Perceptions Value at US$1.3 billion

As global real estate’s most valuable brand, Vanke (brand value USD13.2 billion) has the highest sustainability value at USD1.3 billion of any brand included in the ranking. The brand’s position at the top of the SPV table is not an assessment of its overall sustainability performance, but rather indicates how much brand value it has tied up in sustainability perceptions. The brand’s Sustainability Perception Score was also 4.48 out of 10.