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Bugatti unveils first residential tower in Dubai
The French hypercar manufacturer has broken ground on a 43-story branded residence in Dubai, where the lowest-priced units start at $5.2 million. The project marks Bugatti's debut in the fast-growing luxury real estate sector, joining brands like Porsche and Aston Martin.
Penthouses with private car elevators
Developed in partnership with UAE-based Binghatti Properties, the Bugatti Residences By Binghatti will feature penthouses equipped with private lifts for owners to park their vehicles inside their apartments. The most expensive units have reportedly attracted high-profile buyers, including Brazilian footballer Neymar Jr., who purchased one for $54 million.
Muhammed BinGhatti, chairman of Binghatti Properties, described the appeal as extending beyond ownership of the brand's products. "For enthusiasts, it's about integrating the brand into their daily lives through real estate," he said.
Branded residences surge in popularity
A report by Knight Frank reveals the number of branded residential projects worldwide has nearly quadrupled since 2011, rising from 169 to 611 today. The firm projects the total will exceed 1,000 by 2030, driven by demand from ultra-wealthy buyers.
The U.S. currently leads the market, with Miami and New York as hotspots, but the Middle East is experiencing the fastest growth. Dubai now hosts the highest number of branded residence developments globally, according to Savills, fueled by an influx of affluent buyers relocating to the city.
Faisal Durrani, head of research at Knight Frank Middle East, noted that Dubai's low-tax environment makes branded apartments more affordable than in cities like New York or London. "These properties cater to individuals with extreme brand loyalty, who want to live and breathe a particular brand," he said.
Luxury brands diversify into real estate
While hotel chains like Four Seasons and Ritz-Carlton dominated the sector until recently, non-hotel luxury brands are now claiming a larger share. Porsche's Design Tower in Miami opened in 2017, Aston Martin's Residences Miami launched last year, and Jacob & Co. is set to complete its Al Marjan Island project in the UAE by 2027.
For these companies, real estate offers a low-risk revenue stream, as developers handle construction while buyers pay a premium for the brand's exclusivity. Binghatti estimates branded apartments command prices 30-40% higher than non-branded luxury homes.
Newer projects are expanding beyond traditional luxury offerings, incorporating private members' clubs, wellness facilities, and bespoke services like chauffeured cars and private jet partnerships. Some even target niche interests, such as London's Six Senses Residences, which will include a biohacking center offering cryotherapy, or Texas's Austin Surf Club, built around a man-made surf lagoon.
Exclusivity as social currency
Experts say the boom reflects a broader trend among the ultra-wealthy to use branded residences as a form of social signaling. Giana Eckhardt, a professor of marketing at King's College London, likened these properties to "social status currency," comparable to rare handbags or diamond jewelry.
"Ultra-wealthy consumers increasingly want status assets that are unavailable to everyone. Luxury brands communicate a person's place in the social hierarchy, offering the rewards of association."
Giana Eckhardt, King's College London
BinGhatti emphasized the appeal of uniqueness, stating that each unit in the Bugatti tower is one-of-a-kind, enhancing the sense of exclusivity. However, business psychologist Stuart Duff cautioned that overt branding could backfire, potentially making properties feel less rare and more like "bragging."
"Excessive branding within an apartment could reduce the perception of uniqueness and come across as vulgar or tacky."
Stuart Duff, Pearn Kandola
