Branded Residences in New York and London: A Cross-Border Investor Comparison

Why this comparison matters now

Branded residences — apartments sold with the service standards and intellectual property of a hotel operator or luxury marque — have moved from a niche product into the mainstream of global prime housing. Savills counted around 740 completed schemes worldwide at the end of 2024 and around 910 by the end of 2025, with the signed pipeline set to roughly double the stock by 2032. Within that global map, New York and London remain the two most liquid, deepest, and most legally scrutinised branded-residence markets outside the Gulf. For an international buyer deciding where to deploy capital, the two cities offer very different trade-offs: different ownership structures, different tax exposure, different financing geometry, and increasingly divergent regulatory climates.

The comparison also matters because 2026 is a transition year on both sides of the Atlantic. The United Kingdom abolished the remittance basis for non-domiciled residents from 6 April 2025, replacing it with a four-year foreign-income-and-gains regime, and simultaneously brought non-UK assets held by long-term residents into the scope of inheritance tax. In New York, condominium pricing in the ultra-prime segment has stabilised after the 2022–2024 correction, while the mansion tax and the state transfer-tax surcharge introduced in 2019 are now priced in. The result is a market where like-for-like comparisons require fresh arithmetic rather than pre-pandemic assumptions.

This dossier sets out, section by section, how the best branded residences in NYC for international investors stack up against branded residences London for global investors on the metrics that actually determine net return: entry price per square foot, acquisition friction costs, holding taxes, operator economics, financing, and exit.

Market size and pipeline

New York City is the single largest branded-residence market in the Americas and, by scheme count, one of the top five cities globally. Savills' 2025 Branded Residences report tracks a mature cluster around Billionaires' Row, Hudson Yards, Tribeca and the Financial District, with operators spanning the hotel segment (Aman, Ritz-Carlton, Four Seasons, Mandarin Oriental, Waldorf Astoria) and the non-hotel luxury segment (Baccarat, Armani/Casa and, more recently, fashion-house linked projects).

London's pipeline is smaller in absolute scheme count but comparably deep in value. London is one of Europe's largest branded-residence markets by stock, and Savills ranks it among the five most active cities globally alongside Dubai, Miami, New York and Phuket. Schemes include The OWO Residences by Raffles, Mandarin Oriental Mayfair, Four Seasons Private Residences at Twenty Grosvenor Square, The Peninsula Residences, and the Bulgari-branded extension at Knightsbridge.

In both cities the pipeline is weighted towards fewer, larger-ticket schemes rather than high-volume launches. That matters for secondary liquidity: resale depth in any given building rarely exceeds two or three units a year, so entry and exit windows are narrower than in a conventional condominium.

Entry pricing: dollars and pounds per square foot

Direct per-square-foot comparisons are the cleanest way to normalise the two markets, with the caveat that New York measurements are typically gross (including a share of common areas) while London uses net internal area. Adjusting roughly for that difference:

• New York ultra-prime branded condominiums transacted in a band of approximately USD 3,500 to USD 7,500 per sq ft during 2024–2025, according to data from Miller Samuel's quarterly Manhattan reports and Douglas Elliman's luxury market tracking. Aman New York sits at the top end, with non-branded trophy towers such as 220 Central Park South the benchmark comparable; schemes such as Waldorf Astoria Residences and The Ritz-Carlton Residences, NoMad sit in the mid-band.
• London prime branded residences cleared in a band of roughly GBP 3,500 to GBP 7,000 per sq ft net during the same window, based on Knight Frank's Prime Central London index and transaction evidence published by Savills. The OWO Residences, Mandarin Oriental Mayfair and The Peninsula occupy the top end.

At spot FX in October 2026, headline per-square-foot pricing is broadly comparable between the two cities for genuinely trophy stock. The nuance is that New York's measurement convention inflates the number by roughly 15–20% relative to London net area; on a like-for-like basis, London prime branded is more expensive per usable square foot than New York prime branded.

Branded premiums over equivalent non-branded stock are also structurally different. Knight Frank and Savills both put the global average premium at roughly 30%, with the highest premiums in emerging markets rather than mature cities; city-level figures vary widely by scheme, so check them against recent comparable sales. New York's premium tends to be thinner, partly because the city's non-branded ultra-prime stock is itself amenity-heavy and partly because New York buyers price in the service component more conservatively.

Ownership rules for foreign buyers

New York

The United States imposes no general restriction on foreign ownership of residential real estate. Non-resident aliens can take freehold title to a New York condominium directly, through a US limited liability company, or through a non-US entity. Cooperative buildings, which dominate the Upper East and Upper West Sides, are a different matter: boards almost never approve non-resident foreign buyers, and most branded residences are therefore structured as condominiums precisely to serve the international market.

Two federal reporting regimes are relevant to foreign buyers of US residential property:

• The Corporate Transparency Act, in force since 1 January 2024, requires most US LLCs and corporations to file beneficial-ownership information with FinCEN. Although the Treasury suspended enforcement against US-formed entities in March 2025, foreign reporting companies that register to do business in the US remain in scope.
• FinCEN's Residential Real Estate Rule, finalised in August 2024, would require reporting of non-financed transfers of residential property to legal entities and trusts, nationwide. Its start was postponed to 1 March 2026, and on 19 March 2026 a federal court in Texas (Flowers Title Companies v. Bessent) vacated it; FinCEN has appealed to the Fifth Circuit and, as of October 2026, no reports are required. Buyers using an LLC or trust for an all-cash purchase should confirm the current position with their closing attorney, as reporting could return if the appeal succeeds.

Freehold is perpetual. Condominium declarations govern use restrictions, including short-let rules; most branded buildings prohibit lettings below 30 days under the New York State Multiple Dwelling Law, and operator agreements typically require any letting to be channelled through the hotel rental programme.

London

The United Kingdom likewise permits foreign nationals to buy residential property without a residency or nationality test. The structural question is tenure. Most London branded residences are leasehold, with the lease granted by the freeholder of the building for a term typically between 125 and 999 years. The Mandarin Oriental Mayfair and The OWO are examples of long-leasehold schemes under single-ownership freehold.

Three UK regulatory layers apply to foreign buyers:

• The Register of Overseas Entities, maintained by Companies House under the Economic Crime (Transparency and Enforcement) Act 2022, requires any non-UK entity holding UK property to register its beneficial owners. Non-registration blocks registration of title at HM Land Registry.
• The Non-Resident Stamp Duty Land Tax surcharge of 2% applies to non-UK-resident buyers of residential property, on top of standard SDLT and the higher rates for additional dwellings (raised from 3% to 5% on 31 October 2024).
• Anti-money-laundering checks under the Money Laundering Regulations 2017 require solicitors and estate agents to verify source of funds for all buyers; HNW international buyers routinely face enhanced due diligence.

Leasehold reform remains a live policy area. The Leasehold and Freehold Reform Act 2024 extended lease-extension rights and legislated to abolish marriage value, but as of October 2026 the new valuation regime, including marriage-value abolition, is not yet in force pending secondary legislation on prescribed rates. Investors in long-leasehold branded residences are relatively insulated — a 999-year lease behaves economically like freehold — but shorter leases, particularly below 80 years, carry extension cost that materially affects exit pricing.

Acquisition costs: closing in New York versus completing in London

New York closing stack

For a USD 10 million branded condominium purchased by a non-resident foreign buyer:

• New York State transfer tax: 0.4% on sales under USD 3 million, 0.65% on sales of USD 3 million and above. The additional "mansion tax" is tiered from 1.0% on sales of USD 1 million up to 3.9% on sales of USD 25 million or more, per the New York State Department of Taxation and Finance.
• Title insurance: approximately 0.5–0.8% of purchase price.
• Mortgage recording tax, if financed: 1.925% on loans above USD 500,000 (payable only on financed portion; a Consolidation, Extension and Modification Agreement (CEMA) can reduce this on resales, but is rarely available on new-development sponsor sales).
• Legal fees: USD 10,000–40,000 for a cash purchase; higher for structured deals.
• NYC Real Property Transfer Tax is generally paid by the seller in Manhattan but is negotiable; sponsor contracts for new branded condominiums almost always push transfer taxes to the buyer.

Aggregated, a non-financed foreign buyer of a USD 10 million branded condominium pays roughly 4–6% of price in friction on top of the headline, depending on contract allocation. These figures are indicative as of October 2026; confirm them with a New York real estate attorney.

London completion stack

For a GBP 10 million leasehold branded residence purchased by a non-UK-resident, non-corporate buyer who already owns residential property elsewhere:

• SDLT at the standard residential rates, with the top band at 12% above GBP 1.5 million.
• The Higher Rates for Additional Dwellings surcharge of 5% (increased from 3% on 31 October 2024, per HMRC).
• The Non-Resident SDLT surcharge of 2%.
• Legal fees of GBP 15,000–75,000 and Land Registry fees of up to GBP 1,105.

HMRC's SDLT calculator produces an effective rate of around 18% (roughly GBP 1.81 million) on a GBP 10 million purchase for this profile. For a purchase through a non-natural person (a company), the flat 17% rate on residential property above GBP 500,000 applies (19% for a non-UK-resident company, with the 2% surcharge), together with the Annual Tax on Enveloped Dwellings — a structural warning against corporate envelopes for residential assets.

The comparison is stark: London closing friction on a trophy branded residence is roughly three to four times New York's, on a like-for-like value. That gap is one of the dominant factors in the London–New York net-return equation.

Annual holding taxes and service charges

New York annual costs

New York condominiums carry three recurring charges:

• Real property tax, assessed annually by the NYC Department of Finance. Branded condominium tax bills typically run between 0.3% and 0.9% of market value, with newer sponsor-built towers in Midtown often benefiting from 421-a or similar partial exemptions during their initial years. The effective tax rate for Class 2 condominiums was 12.502% of assessed value in fiscal year 2025, but assessed values sit well below market.
• Common charges, which fund building operations and the hotel-branded service component. For branded residences these commonly run roughly USD 2–5 per sq ft per month (about USD 25–60 per sq ft per annum), varying widely by building.
• Federal and state income tax on US-source rental income, by default via 30% withholding on gross rents (FIRPTA withholding applies on sale, not to rents). Non-US investors are typically advised to make a Section 871(d) election to be taxed on a net basis.

London annual costs

London leasehold residences carry:

• Council tax, set by the London borough. In the City of Westminster, the 2025–26 Band H charge was roughly GBP 2,000 — trivial on a GBP 10 million asset. From April 2028 the High Value Council Tax Surcharge adds GBP 2,500–7,500 a year (GBP 7,500 above GBP 5 million), payable by the owner of homes valued at GBP 2 million or more.
• Service charges, which for prime branded buildings run GBP 25–60 per sq ft per annum. The Peninsula and The OWO Residences sit near the top of that range.
• Ground rent, typically peppercorn on new long leases following the Leasehold Reform (Ground Rent) Act 2022.
• Income tax on UK rental income at 20%/40%/45% for 2026–27, with tax withheld at 20% under the Non-Resident Landlord Scheme unless HMRC approves gross payment; separate property income rates of 22%/42%/47% apply from 6 April 2027.

The counter-intuitive outcome is that London's recurring holding cost on a trophy branded residence is lower than New York's as a share of value — service charges are higher per square foot, but UK council tax is a fraction of New York property tax. On a GBP 10 million / USD 10 million comparable asset, annual holding costs typically run 1.0–1.8% of value in London versus 1.5–2.5% in New York.

The capital-gains and inheritance question

United States

Non-resident foreign investors selling US real estate are subject to FIRPTA withholding of 15% of gross sales price, creditable against the actual US tax liability. Long-term capital gains for non-residents are taxed at federal rates up to 20%, plus New York State tax (top rate 10.9%; NYC personal income tax does not reach non-residents), giving a top combined rate of around 31%.

The US estate tax exposure for non-resident aliens is the single largest planning issue for international buyers. US-situs assets, including directly held real estate, are subject to US federal estate tax at rates up to 40% above a USD 60,000 exemption — a fraction of the USD 15 million exemption available to US citizens and domiciliaries in 2026. Treaty relief exists for a limited number of countries. The standard response is to hold US property through a non-US corporation or a tiered structure, trading estate exposure for ongoing compliance and loss of long-term capital-gains rates.

United Kingdom

Non-UK residents have been subject to UK capital gains tax on disposals of UK residential property since April 2015, extended to all UK real estate in April 2019. The current rate for individuals is 24% on the residential gain, with reporting required within 60 days of completion.

Inheritance tax changed materially on 6 April 2025. The remittance basis was abolished, and inheritance tax now applies on a residence-based test rather than domicile. Non-UK assets become subject to UK IHT once an individual has been UK-resident for ten of the previous twenty tax years. UK-situs assets, including a London branded residence, are within the scope of UK IHT regardless of the owner's residence status, at a top rate of 40% above the GBP 325,000 nil-rate band.

The practical conclusion is that both jurisdictions impose heavy estate or inheritance exposure on directly held residential property for non-resident foreign buyers. Neither can be ignored at the planning stage.

Financing

New York

International buyers can obtain US mortgage financing, though loan-to-value is typically capped at 50–65% for non-resident foreign nationals, versus 75–80% for US residents. Private banks (JP Morgan, Citi Private Bank, HSBC Private Bank, UBS, Deutsche Bank) are the dominant lenders in this segment and typically require assets under management as part of the relationship. Pricing for seven-year interest-only facilities to foreign-national borrowers sits materially above the SOFR curve and varies with relationship size; obtain term sheets from several lenders rather than relying on a published range.

London

London private-bank financing for international buyers is likewise typically capped at 60–70% LTV, with Bank Rate at 3.75% in October 2026, held since December 2025 (three MPC members voted to raise it in September 2026). Private-bank margins over base rate for foreign HNW borrowers run 150–250 bps. The AUM-tied relationship model is identical to New York.

A structural difference: UK lenders tend to be more conservative on serviced-apartment and hotel-branded stock, viewing operator revenue as a lease rather than an owner-occupier cashflow. New York lenders are, if anything, more accommodating for branded product given the depth of the sponsor-financing market.

Operator economics and the branded premium

Both markets price a visible brand premium, but the operator relationship differs. In New York, branded residences typically operate under a long-term licence agreement between the condominium board and the operator, with service fees paid out of common charges and a separate à la carte menu for hotel services. The operator rarely has an ownership stake in the residential component.

In London, several schemes are structured as integrated hotel-plus-residence developments where the operator or a close affiliate retains the freehold and residents hold long leases. This gives the operator stronger control over service standards but also exposes residents to the operator's covenant quality over the life of the lease.

In either city, the key diligence points are:

• Length and renewal terms of the operator licence agreement
• Change-of-control provisions if the brand is sold or the hotel re-flagged
• Rental programme economics, including the operator's share of gross versus net rental income
• Cost-pass-through mechanisms for operator service fees

Savills' 2024 and 2025 research indicates that the branded premium tends to hold on resale where the operator agreement remains in force and the brand retains its market positioning. Where operator agreements have lapsed or brands have declined in market standing, the premium can erode quickly.

Rental yields and short-let regulation

Gross rental yields on prime branded residences in both cities are compressed by the capital value, typically running 2.5–3.5% gross on a trophy unit. Net yields after service charges, management fees and taxes often fall below 1.5%. These are capital-preservation assets, not income assets.

Short-letting is heavily restricted in both cities. New York's Local Law 18, in force since September 2023, requires registration of all short-term rentals and effectively prohibits rentals of entire units for stays under 30 days, as enforced by the Mayor's Office of Special Enforcement. London restricts short-letting of entire residential premises to 90 nights per calendar year under the Deregulation Act 2015, with Westminster and Kensington & Chelsea pursuing enforcement actively.

For both markets, serious rental income from a branded residence is only achievable through the operator's rental programme, which typically retains 30–50% of gross and imposes availability requirements.

Currency, geopolitics, and portfolio fit

The sterling–dollar cross has traded in a roughly 1.21–1.39 range through 2024–2026, per Bank of England and Federal Reserve data. For a euro- or dirham-based investor, the implied FX risk of a sterling versus dollar allocation is non-trivial over a holding period of five to ten years. Investors with liabilities in a specific currency should match acquisition currency where possible.

Geopolitically, both cities offer deep rule-of-law protection for foreign property owners, independent judiciaries, and liquid secondary markets. The policy risks are different: in the UK, further tax changes targeting non-residents and non-domiciles are a recurring feature of fiscal events, with the 2024 and 2025 Budgets both introducing material changes. In the United States, federal policy risk is lower for real estate itself, but state and city tax policy — particularly in New York — has trended towards higher transfer and mansion taxes over the past decade.

What an investor should watch

• The pace of UK secondary legislation implementing the Leasehold and Freehold Reform Act 2024. Investors in shorter-lease branded stock should model extension cost under both the current and proposed valuation regimes.
• The Fifth Circuit appeal over FinCEN's Residential Real Estate Rule, vacated in March 2026. If it is reinstated, the reporting burden falls primarily on settlement agents, but international buyers should expect enhanced due diligence on source of funds for cash purchases.
• The US federal estate-tax exemption, set permanently at USD 15 million from 2026 (indexed for inflation) by the July 2025 tax law. Non-US investors are unaffected by the headline exemption but should track whether treaty negotiations advance for jurisdictions currently without an estate-tax treaty.
• Operator consolidation. Several hotel groups active in branded residences have been subject to M&A speculation; change-of-control clauses in licence agreements should be reviewed before acquisition.
• Pipeline absorption in both cities. Savills' pipeline data suggests London will add disproportionately to its branded stock over 2026–2028, which may compress the premium at the margin; New York's pipeline is more measured.

For international investors weighing New York against London, the honest conclusion is that neither market dominates on every metric. New York offers lower entry friction, more generous financing, and a thinner branded premium at acquisition. London offers lower annual holding costs as a share of value, a deeper operator-integrated model, and — for buyers who can structure around the inheritance-tax exposure — a comparable long-term store of value. The choice is less about which city wins and more about which friction profile matches the holding period, tax residency, and succession plan of the specific buyer. The tax and legal points here are general information as of October 2026, not advice; confirm them with a licensed lawyer and tax adviser in each jurisdiction before committing.