Luxury Carmakers Race to the Sky: Why Bugatti and Porsche Are Building Residential Towers

Bugatti, the French marque synonymous with high-performance supercars, is entering a new kind of race—one that takes place in the skyline rather than on the track. In the heart of Dubai, the company is constructing its inaugural residential tower, joining a growing trend of luxury brands expanding into high-end real estate.

With entry-level apartments priced at $5.2m (£3.9m), Bugatti is tapping into the burgeoning market for branded residences. This sector is increasingly populated by non-hospitality luxury firms, including fellow automakers Porsche and Aston Martin, as well as fashion houses Fendi and Missoni, and Swiss watchmaker Jacob & Co.

Experiential Living for the Super-Rich

The 43-storey Bugatti Residences is being developed in partnership with UAE-based Binghatti Properties. The project’s most exclusive penthouses will feature private lifts capable of transporting owners’ cars directly into their living spaces.

“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,” says Muhammed BinGhatti, chairman of Binghatti Properties.

High-profile buyers include Brazilian footballer Neymar Junior, who reportedly paid $54m for a penthouse, and opera singer Andrea Bocelli. According to BinGhatti, the premium for such exclusivity is significant: branded apartments typically command prices 30% to 40% higher than comparable non-branded luxury homes.

Surging Global Demand

Demand for branded residences has accelerated sharply over the past two years. A new report by estate agent Knight Frank indicates that the number of such schemes has grown from 169 in 2011 to 611 today, with forecasts predicting a rise to 1,019 by 2030

While the US currently leads the market—centred on Miami and New York—the Middle East is experiencing the most rapid growth, driven largely by expansion in the UAE and Saudi Arabia. Dubai now leads globally in the number of branded projects under development, fuelled by an influx of wealthy individuals.

“Branded residences appeal most to individuals with extreme brand loyalty – people who want to live and breathe a particular brand,” notes Faisal Durrani, head of research at Knight Frank Middle East. He adds that despite their luxury status, Dubai’s prices remain “extremely affordable compared with cities like New York and London.”

Diversification and Status

For luxury companies, these ventures offer a low-risk revenue stream. Development partners handle construction while the brands monetize their aesthetic and reputation. Projects often include amenities ranging from private members’ clubs and chauffeured cars to wellness facilities. For instance, the upcoming Six Senses Residences in London will feature a biohacking centre offering cryotherapy

Experts suggest the trend is driven by a desire for social signalling. Giana Eckhardt, a professor of marketing at King’s College London, argues that these homes serve as a form of “social status currency” akin to rare luxury goods.

“Ultra-wealthy consumers increasingly want status assets and goods that are not available to everyone,” Eckhardt says.

However, not everyone views the trend favourably. Business psychologist Stuart Duff warns that excessive branding can backfire. “Having the presence of a brand everywhere within an apartment block could well reduce the perception of rarity… and at worst being seen as vulgar and tacky.”