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Bugatti, renowned for its high-performance and ultra-expensive supercars, is now venturing into a new arena: luxury residential real estate, specifically, branded residences.
The French luxury brand is constructing its inaugural residential tower in Dubai, United Arab Emirates, marking its entry into this market.
With apartments starting at $5.2 million (£3.9 million), Bugatti is targeting the world’s affluent seeking exclusive living experiences.
Branded residences, developed by luxury firms like Porsche and Aston Martin, offer opulent, fully-furnished apartments, prominently featuring the company’s brand name and logo.
Other luxury brands entering this sector include Swiss watchmaker Jacob & Co, and Italian fashion houses Fendi and Missoni.
Bugatti’s 43-story Dubai tower, “Bugatti Residences By Binghatti,” is a partnership with UAE-based Binghatti Properties. The building’s most exclusive penthouses will feature private elevators for residents to park their vehicles within their apartments.
“For many car or watch enthusiasts, it’s not just about owning the vehicle or the timepiece, but experiencing the brand in their everyday life through real estate,” states Muhammed BinGhatti, chairman of Binghatti Properties.
Reportedly, the buyer list for the Bugatti project includes Brazilian football star Neymar Junior and opera singer Andrea Bocelli, according to Mr. BinGhatti. Neymar is said to have acquired one of the penthouses for $54 million.
Global demand for branded residences has experienced “accelerated” growth in the past two years, according to a recent report by Knight Frank.
The report indicates that the number of such schemes has risen from 169 in 2011 to 611 currently, with projections estimating a further increase to 1,019 by 2030.
The United States currently leads in the number of branded apartment buildings, concentrated in Miami and New York. However, Knight Frank highlights the Middle East, particularly the United Arab Emirates (UAE) and Saudi Arabia, as experiencing the most significant growth.
“Branded residences appeal most to individuals with extreme brand loyalty – people who want to live and breathe a particular brand,” says Faisal Durrani, head of research at Knight Frank Middle East.
Dubai now leads in the number of branded residences projects under development, driven by the influx of wealthy individuals relocating to the city and purchasing luxury homes, according to a separate report by Savills.
Durrani further notes that prices for branded apartments in Dubai, with its low-tax environment, are often more competitive compared to other global cities, characterizing them as “extremely affordable compared with cities like New York and London.”
While hotel chains like Four Seasons and Ritz-Carlton previously dominated the branded residences sector, non-hotel luxury brands are increasingly claiming a larger share of new projects.
Porsche’s Design Tower in Miami opened in 2017, Aston Martin’s Residences Miami debuted last year, and Jacob & Co’s project on Al Marjan Island in the UAE is slated for completion in 2027.
Real estate offers these companies a new revenue stream with relatively low risk, as property development partners manage construction, and buyers pay a premium for the brand’s associated aesthetic and exclusivity.
According to BinGhatti, branded apartments typically command a 30-40% price premium compared to non-branded luxury homes.
Many new branded schemes feature exclusive amenities such as private members’ clubs, wellness facilities, and premium services, including chauffeured cars, yacht access, and private jet partnerships.
A new tier of branded properties is also emerging, centered around shared passions like gastronomy, wellness, and longevity science.
In London, the forthcoming Six Senses Residences in Bayswater, developed by the Six Senses hotel chain, will feature a biohacking center offering therapies such as cryotherapy, marketed for its potential to boost energy levels and enhance skin tone.
Meanwhile, in Texas, Discovery Land Company’s upcoming residential Austin Surf Club will revolve around a vast man-made surf lagoon.
Business and consumer psychology experts attribute the surge in luxury branded apartments to a broader desire for social signaling and exclusivity.
Giana Eckhardt, a professor of marketing at King’s College London, posits that these homes have become a new form of “social status currency,” analogous to a rare handbag or a large diamond ring.
“Ultra-wealthy consumers increasingly want status assets and goods that are not available to everyone,” she says.
Eckhardt, specializing in consumer behavior, branding, and consumer culture, adds that luxury brands communicate an individual’s “place in a social hierarchy.” “They want the social rewards that come with being associated with these brands,” she adds.
BinGhatti affirms that exclusivity is key to the appeal. “Clients really get the highest level of exclusivity.”
“Every unit is unique, and that gives them a special feeling of owning a one-of-a-kind [apartment] across the entire planet.”
However, business psychologist Stuart Duff, of UK firm Pearn Kandola, cautions that the concept of branded apartments may be perceived as lacking in taste by some, especially if the brand name is excessively displayed.
“Having the presence of a brand everywhere within an apartment block could well reduce the perception of rarity and uniqueness, and lead to a feeling of bragging, and at worst, being seen as vulgar and tacky.”
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