Luxury fashion brands are increasingly entering the real estate market through branded residences, combining their lifestyle aesthetics with property development to appeal to affluent buyers worldwide. Italian label Etro and German fashion house Karl Lagerfeld are among the prominent brands expanding their presence in this sector, offering immersive living environments in sought-after destinations.
Fabrizio Cardinali, CEO of Etro, underscored the brand’s natural progression into home design, noting a deep connection to interior textiles since the company’s early days. Etro’s current projects include the Etro Residences Istanbul and Etro Residences Phuket, both expected to complete by 2027. The Phuket development features just eight luxury apartments within the Gardens of Eden estate near Bang Tao Beach, where prices have reached approximately $5.5 million for select three-bedroom units. These properties cater primarily to high-net-worth individuals from Russia, China, and Europe, who seek lifestyle-driven holiday homes with wellness amenities and personalized concierge services.
Etro’s approach also involves tailoring its distinctive maximalist design language to suit local environments. For the tropical setting of Phuket, the brand has adopted lighter color palettes and harmonious interpretations while retaining key signature elements such as patterns and textures. Cardinali highlighted this adaptability as a competitive advantage that allows the brand to transcend traditional fashion boundaries while staying authentic to its heritage.
Karl Lagerfeld has similarly branched into branded property developments, with projects including villas in Marbella, Dubai, and residences in Lisbon, alongside the Karl Lagerfeld Macau hotel. Caroline Lebar, senior vice-president of image and communications at Karl Lagerfeld, emphasized the importance of creating coherent experiences that reflect the brand’s identity. She noted that every aspect—from architecture and interiors to ambiance and services—is carefully curated to embody the designer’s creative vision.
According to the Savills Branded Residences Annual Report for 2024-25, the sector has grown by more than 180 percent over the past decade, with fashion brands such as Armani, Versace, and Karl Lagerfeld leading the expansion. Real estate developers are motivated by the ability of luxury brand names to command price premiums of roughly 30 percent compared with non-branded luxury offerings. The trend extends beyond fashion, with hospitality groups also developing branded residences to meet rising demand.
In Bangkok, Hong Kong’s Upper House hotel recently initiated construction of a new branded residence project set to finish by 2030. Casey Au, co-managing director of City Dynamic—a partnership between Thai developer City Realty and Swire Properties—said luxury buyers are increasingly focused not only on location and size but also on factors such as design, wellness features, service quality, sustainability, and ongoing property management.
As luxury branded residences continue to evolve, industry leaders see the concept as an extension of the fashion house into a holistic lifestyle experience rather than simple real estate ventures. Cardinali described this shift as a move from traditional textile-based branding toward creating “a home away from home you never want to leave” for affluent global travelers, reflecting changing perceptions of ultimate luxury.