Evergrande most valuable and strongest
Evergrande has remained the world’s most valuable real estate brand, with a brand value increase of 26% to US$20.4 billon, breaking the US$20 billion mark, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.
As China’s second-largest property developer, Evergrande has stayed ahead of the curve by continuing to modernise and embracing new technologies. The real estate giant’s recent venture with State Grid Corp. to develop home car-charging technology is expected to elevate the brand’s competitiveness in the market, setting Evergrande on a positive trajectory for the rest of the year.
Aside from calculating overall 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. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Evergrande is also the strongest real estate brand of 2019 with a Brand Strength Index (BSI) score of 77.3 out of 100 and a corresponding AA+ rating.
David Haigh, CEO of Brand Finance commented:
“Over the last year, Evergrande has been riding the surge of the Chinese real estate market, staying ahead of its competition through strategic EV-related acquisitions and ground-breaking projects such as developing electric-vehicle powertrains. Subsequently, the brand’s expansion into the EV industry should place it in a favourable position to weather potential dips in the Chinese property market”.
Chinese brands dominate
Chinese brands dominate the Brand Finance Real Estate 25 2019 ranking this year, with an impressive 20 of 25 brands hailing from the country. China is also home to the five fastest-growing brands on the ranking, led by Agile Property (up 72% to US$2 billion) and Longfor Properties (up 72% to US$8.2 billion), followed by R&F (up 70% to US$3.1 billion), China Merchants Shekou (up 70% to US$2.2 billion), and China Resources Land (up 68% to US$6.5 billion).
However, China’s Dalian Wanda continues its dramatic downward trajectory as the fastest-falling brand in the ranking, dropping 34% from US$7.8 billion to US$5.2 billion. Dalian Wanda therefore remains troubled by its debt obligations following the brand’s failed shift towards alternative business projects.
Emaar and CBRE ones to watch
Outside of China, UAE-owned Emaar Properties (brand value US$2.7 billion) is the most valuable brand on the Brand Finance Real Estate 25 2019 ranking. Emaar Properties is publicly-listed in the UAE and continues to increase in brand value due to its large-scale projects, such as developing the Dubai Mall, the world’s largest shopping centre, and the Burj Khalifa, the tallest building in the world. Currently accounting for one third of real estate deals in Dubai, Emaar Properties continues to build its portfolio by signing on to high-profile projects such as developing part of Beijing’s new Daxing International Airport and the first 3D printed model home.
US-owned CBRE is the fastest-growing brand outside of China, up by a staggering 53% to US$2.1 billion. As the largest commercial real estate services company in the world, CBRE has been expanding into new markets and acquiring deals to develop new infrastructure over the last year. The brand has also been bolstered by its commitment to social responsibility efforts, including charity partnerships with Shelter and Action for Children.
Note to Editors
Every year, Brand Finance values 5,000 of the world’s biggest brands. The 25 most valuable real estate brands are included in the Brand Finance Real Estate 25 2019 report.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
Additional insights, charts, and more information about the methodology, as well as definitions of key terms are available in the Brand Finance Real Estate 25 2019 report.
Data compiled for the Brand Finance rankings and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.