How luxury car brands are turning Dubai homes into high-priced assets

Dubai: Luxury car and lifestyle brands are moving beyond showrooms and into residential real estate, turning branded towers into high-value assets that appeal to wealthy buyers seeking a defined lifestyle alongside long-term price resilience.

Across Dubai and the wider UAE, developers are increasingly pairing prime plots with global names including Bugatti, Pagani, Aston Martin, Brabus, Lamborghini and Mercedes-Benz. These developments frequently achieve prices above comparable non-branded homes, prompting closer scrutiny of how brands influence value, buyer behaviour and long-term performance.

In branded residential developments, the brand is embedded into the project framework, shaping design standards, service expectations and governance structures. Oussama El Kadiri, Partner and Head of Hospitality, Tourism and Leisure Advisory for MENA at Knight Frank, said this approach treats real estate as a physical extension of brand identity.

“Branding a development implies considering real estate as an extension of the brand DNA, with control points written into design, service and governance,” he said.

Knight Frank tracks more than 1,000 branded residential projects globally, revealing wide variation in how brands participate. Hotel brands typically maintain deeper involvement throughout development and operations, supported by strict compliance frameworks that protect service consistency. Non-hotel luxury brands, including carmakers, generally focus on design direction and licensing, while operational responsibility remains with the developer or a specialist operator.

El Kadiri said selecting the appropriate brand for each project is critical to managing risk and returns, particularly in markets where buyers expect both lifestyle quality and long-term asset protection.

Pricing remains the most visible outcome of branding. Knight Frank’s research shows branded residences command average global premiums of about 30% over comparable non-branded homes in similar locations.

“Our in-house research confirms that branded schemes typically command a material premium,” El Kadiri said. “In Dubai, some branded projects have traded at prices exceeding 100% above the wider residential market during recent cycles.”

Buyer expectations play a role in sustaining those premiums. Knight Frank’s 2025 Destination Dubai report, which surveyed nearly 400 high-net-worth individuals with an average net worth of $22 million, found branded residences are widely viewed as tools for capital protection and potential outperformance. Many respondents expect price growth of 5% to 15% during the first year of ownership.

El Kadiri said pricing durability varies by market. In domestically driven or mid-market environments, buyers tend to be more price-sensitive, placing less emphasis on brand positioning. In tourism-led markets, hospitality-linked branding can broaden the buyer base by appealing to investors interested in rental income and operational backing.

Dubai has emerged as the world’s most active branded residence market, supported by tax efficiency, investor-friendly regulation, strong tourism fundamentals and sustained inflows of global wealth.

The city’s tourism profile plays a key role. Repeat visitors often progress from guests to investors, while rental demand attracts buyers seeking income alongside capital growth. Knight Frank’s research shows more than half of high-net-worth buyers based outside the UAE are motivated primarily by investment returns.

Dubai’s ultra-prime segment has also expanded rapidly. The city recorded 500 home sales above $10 million during 2025, worth more than $9 billion, with a significant share linked to branded developments. Demand has been reinforced by wealthy residents seeking primary or semi-primary homes, supporting steadier market fundamentals.

Developers view branding as a tool to reduce sales risk and improve absorption rates. El Kadiri said brand partnerships unlock pricing power while attracting a global pool of buyers who value risk mitigation supported by established quality benchmarks.

From a buyer’s perspective, brand involvement is often seen as a safeguard against construction delays, inconsistent delivery or declining asset quality. Some brands also offer access to loyalty networks and existing owner communities, extending reach beyond conventional sales channels.

Zacky Sajjad, Director of Business Development and Client Relations at Cavendish Maxwell, said luxury brands use real estate to embed their identity into everyday life.

“Real estate isn’t about becoming property operators,” he said. “It’s about extending brand identity into daily living, where homes become a permanent expression of design, performance and lifestyle values.”

Sajjad added that long-term value depends on execution. Design quality, location and maintenance standards determine whether premiums endure once interiors age and market conditions shift.

For carmakers and lifestyle brands, real estate partnerships have evolved into a capital-light growth strategy. Knight Frank’s research shows brands such as Aston Martin, Porsche and Mercedes-Benz anchoring projects across Dubai, Miami and Ras Al Khaimah.

El Kadiri said these developments allow brands to position themselves as lifestyle ecosystems, extending beyond single products into interiors, furnishings and ownership experience.

Sajjad noted the approach carries limited financial risk, though excessive expansion could dilute exclusivity if supply accelerates too quickly. Strict brand guidelines are typically enforced to protect long-term positioning.

Ankur Aggarwal, Chairman and Founder of BNW Developments, said brand partnerships address a growing challenge in the ultra-luxury market, where differentiation becomes harder as supply rises.

“A luxury brand partnership delivers immediate emotional credibility while reinforcing trust, identity and value,” he said.

Brand involvement is strongest during design development, material selection and amenity planning, later shifting into governance through structured reviews and quality audits. Aggarwal said branded projects typically carry a cost base 10% to 15% higher due to licensing and specification requirements, alongside long-term commitments to service quality.

“In the luxury segment, the highest cost is allowing a premium asset to lose its standing over time,” he said.

In emerging markets such as Ras Al Khaimah, branded residences often command premiums of 15% to 25% within the same micro-locations, supported by stronger resale liquidity and clearer service benchmarks.

Branded residences remain concentrated at the upper end of the market, though some non-hotel brands are expanding into broader luxury segments. Pricing power tends to weaken as developments move down the price curve, increasing the importance of alignment between brand, location and operational quality.

Dubai’s combination of global wealth migration, tourism demand and appetite for lifestyle-led real estate continues to support the model. Luxury brands are shaping how homes are priced, marketed and perceived, turning brand identity into a durable component of real estate value.