Dubai is witnessing a surge in ultra-luxury branded residences from top-tier names like Bulgari and Armani.

Armani… Bulgari… Versace… and more.

It’s like a designer mall directory, but these are actual homes, not storefronts.

Branded residences blend the style and services of their luxury labels, often located alongside their affiliated hotels or resorts. Increasingly, fashion powerhouses are stepping into the world of real estate.

According to Savills, branded residences have surged by about 160% in the past decade, with global numbers set to nearly double by 2030. The leader? Dubai, overtaking South Florida to become the top destination for these exclusive properties.

The brand’s reputation is crucial to its appeal, according to Patricia Viel, CEO of ACPV ARCHITECTS Antonio Citterio Patricia Viel, the architectural firm behind the Bulgari Lighthouse project.

“This isn’t just any building; it’s a property with the level of sophistication and service akin to a resort or hotel,” said Viel. “You need a brand that ensures top-tier quality of service for these residences.”

A true feeling of ownership.

ACPV ARCHITECTS began collaborating with Bulgari on its hospitality projects in 2000, designing everything from the brand’s first hotel in Milan in 2004 to the Bulgari Lighthouse in Dubai. Bulgari’s ‘residential approach’ to hospitality, with rooms and suites that offered a ‘sense of ownership,’ said Viel, made the transition into branded residences a seamless evolution.

For many buyers of these branded properties, the purchase isn’t their primary residence or even their second home. This unique relationship with the property places a premium on convenience, as Viel explains: “Service is crucial for someone owning six or eight homes worldwide.”

Factors like building management and operations are increasingly significant, especially when the property is sold fully furnished.

These residences, often connected to a branded hotel or resort, offer the ultimate in luxury hospitality while providing complete privacy in the living spaces. Resorts like Bulgari Dubai go beyond the usual gym and spa, offering Michelin-starred dining and world-class bars, making the resort a hub for both locals and tourists alike.

“For these buyers, the ability to ‘own the place’ and immerse themselves in the heart of the social scene is a valuable privilege,” said Viel.

For many wealthy buyers, the ability to purchase “immediate access to the Dubai lifestyle” is a key driver, says Faisal Durrani, head researcher at Knight Frank Middle East. According to the Knight Frank 2023 Prime International Residential Index, Dubai is outpacing traditional luxury real estate hotspots like Aspen, Miami, the Algarve, and the Bahamas for second homes.

For luxury brands, entering the real estate market allows them to diversify their revenue through licensing or management fees. For developers, the brand association leads to higher property values. On average, branded residences achieve a 30% premium over comparable properties in the same area—yet in Dubai, that premium jumps to 86%, according to Knight Frank.

An unwavering focus on detail.

Dubai, a relatively new market for international buyers and investors since 2002, has seen its real estate sector experience significant fluctuations over the past two decades, driven by speculative 'buy-to-flip' trends and an oversupply of properties, according to Durrani.

Branded residences can mitigate these risks by providing assurance on quality and service, particularly for foreign buyers, says Rosa Piro, senior business development director at Arada, a UAE-based property developer. “Dubai buyers tend to favor and trust established brands.”

Arada has launched its first branded residence project, the Armani Beach Residences, revealed earlier this month. Located on the coveted Palm Jumeirah island, the project was designed by renowned Japanese architect Tadao Ando.

Piro believes the Armani brand is much more than just a label for this project. “Both of our partners are deeply and personally involved,” she explained, adding that “Mr. Armani himself is contributing to the apartment designs, bringing his personal touch to every detail.”

As the developer, Arada manages the construction and logistics, ensuring smooth coordination between the architect and the brand. It’s in these fine details that Armani’s influence shines, said Piro: “For example, when we were approving the renders, the Armani team meticulously analyzed the flow of the curtains, counting the number of waves.”

Buyers of the two penthouses—one in each tower—will experience this meticulous attention to detail firsthand: their purchase includes a trip to Milan, a stay at the Armani Hotel, and a meeting with Giorgio Armani and his design team to discuss personal style preferences, offering a complete ‘360-degree experience’ of the Armani world, according to Piro.

According to Durrani, the success of the luxury property market has had a positive effect on the broader real estate sector: by September 2023, Dubai’s market had increased by 19% year-on-year, based on the latest data from Knight Frank.

The supply-demand imbalance has been corrected, driven by construction delays during the Covid-19 pandemic and a rise in international buyers purchasing homes to live in, said Durrani. Dubai’s Golden Visa, introduced in 2019 to attract talent and investment, has fueled population growth, adding 100,000 people in 2023 alone.

Although branded residences make up a small portion of the overall property market, the sector is rapidly expanding, with 3,700 units currently in development.

The Armani Beach Residences is just the first of many branded residence projects for Arada, which is already preparing to unveil its next development later this year. “There is a strong demand from both buyers and developers to continue pursuing branded residences,” said Piro.