Why luxury automotive brands are licensing real estate projects

Diversifying revenue streams as a result of financial challenges is far from a new business phenomenon. But a blossoming trend has emerged among luxury automotive brands that can no longer rely on car sales and heritage to compete in an EV-dominated, economically unstable era: real estate. In a bid to deepen brand storytelling, build loyalty among VICs, and establish more stable revenue channels, Aston Martin, Bentley, Bugatti, Pagani, and others are licensing their names to high-end residential developments. “Developers around the world believe they can elevate their projects by aligning with a powerful brand,” says Daniel Gava, a board advisor in the international design industry. “If you’re building a luxury residence where apartments are priced at $5 million or $10 million, branding it with a prestigious car manufacturer or fashion label is seen as a way to boost the property’s value.” Slowing sales to sky-high towers Aston Martin’s full-year 2024 results underscore the financial pressures many luxury automakers are facing. Global volumes fell 9% for the year, a dip the brand attributes to a “portfolio transition” period. China was especially sluggish due to ongoing macroeconomic challenges. Even with a modest 8% YoY uptick in Q4, the brand remains cautious. Against this backdrop, the Aston Martin Residences in Miami — a 66-story glass tower with interiors inspired by the marque’s design language — represents both a hedge against volatile auto sales and a strategic move to monetize brand equity in a less cyclical sector. Licensing agreements give automakers a cut of sales revenue or a fixed fee without the burden of owning or managing property. In other words, the upside is attractive and the risk is low. And this is just the start for the British sports car manufacturer: June 2025 saw the unveiling of N°001 Minami Aoyama, Aston Martin’s first-ever private residence in Asia, located in Tokyo’s coveted Omotesandō neighborhood. Designed in collaboration with Japanese luxury real estate leader Vibroa, the four-story townhouse is a striking embodiment of Aston Martin’s design language, from the sculptural staircase reminiscent of folded origami to an automotive gallery that elevates two Aston Martins as sculptural works of art. In February 2025, Mercedes-Benz opened its first U.S.-based real estate project in Miami, in partnership with JDS Development. Meanwhile, the Bugatti Residences by Binghatti, located in Business Bay, Dubai, are slated for completion in Q4 2025 — Brazilian football superstar Neymar Jr. has reportedly already acquired one of the penthouses. Bentley is also betting on real estate. Its upcoming Bentley Residences in Miami, a collaboration with Dezer Development, features “Dezervators” — car elevators that allow residents to park next to their living rooms. Scheduled to open between fall 2026 and Q1 2027, the luxury living complex promises “the best of Miami living,” with a pet spa, cigar lounge, wellness center, spa, and more. In fact, it’s already being dubbed the “billionaire bunker.” Business models are built on branding Most of these real estate projects are developer-led, with automakers serving as design collaborators and brand licensors. It’s a capital-light model for the brands, who provide design input, signature aesthetics, and marketing power — in exchange for a slice of the revenue. For more niche players like Pagani, the move into real estate is a logical extension of their hyper-luxury identity. Gava says, “Pagani entered the real estate and interior design space because some of their clients were asking, ‘The interiors in your cars are incredible — can we bring that same style into our homes?’ That demand sparked the idea. Backed by investment from Saudi Arabia’s Public Investment Fund, someone eventually asked, ‘Why not do an entire building in your name?’ And that’s how the project was born.” The Italian marque reported $75 million in revenue as of mid-2025 — modest by automotive standards but notable for its profitability relative to turnover. After Pagani Residences in Miami Beach opened in January 2025, the brand has gained increased visibility with high-net-worth individuals beyond the racetrack, nurturing its reputation in luxury architecture and interior craftsmanship. Once again, branded living spaces are offering scalable revenue streams without diluting exclusivity. Setting sights on Asia While these projects currently cluster in Western luxury markets like Miami and Dubai, the long-term opportunity lies further east. Asia, especially China, remains one of the most promising markets for luxury real estate, but Western brands entering this space must localize with care. Chinese Gen Z and affluent millennials — increasingly values-driven and discerning — may not be won over by brand prestige alone. Versace has already demonstrated its ability to deliver high-end residential experiences in China. In 2015, the Italian luxury house entered the branded residence market there through a partnership with Mind Group, launching the Versace Residences Chengdu. This 68‑story luxury tower near Jin River and Wangjiang Park offers apartments ranging from 1,600 to 4,300 square feet. The interiors, designed under Donatella Versace’s creative direction, combine Versace’s signature aesthetic with elements of traditional Chinese craftsmanship. According to research by Savills, the global market for branded residences has expanded by more than 160% over the last decade. The Asia-Pacific region, particularly China, has emerged as a key driver of this trend. Markets such as Vietnam and Thailand are seeing steady annual growth rates of approximately 10%, while Japan and South Korea have recorded growth surpassing 50% in the same period. The Bulgari Hotel in Shanghai, open for eight years, stands as another benchmark of success in the region. Both cases show how well-established luxury brands can translate their identities into real estate, creating aspirational environments that resonate with affluent Chinese consumers, who now spend more on experiences than products. Diversification or distraction? The pivot to property isn’t without risks. Critics argue that if not executed thoughtfully, these projects can dilute brand value and alienate core customers. For example, would a Bugatti buyer necessarily want a Bugatti apartment? Probably only if the lifestyle translation is seamless, and the brand’s promise is upheld in every square meter.

Bugatti, Aston Martin: The new wave of ‘billionaire bunkers’

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Bugatti, Aston Martin: The new wave of ‘billionaire bunkers’