Karl Lagerfeld expands real estate empire with new luxury residences in Lisbon and Ras Al Khaimah.

The Karl Lagerfeld brand is significantly expanding its footprint in the real estate sector with new luxury residential developments planned for Lisbon and Ras Al Khaimah (RAK), marking the latest phase in the designer brand’s growing property portfolio. The new projects reflect a strategic move to translate the late designer’s polymathic vision into physical spaces, capitalizing on his legacy in architecture, design, and art.

In Europe, the brand unveiled plans for "Karl Lagerfeld Residences Lisboa," a high-end apartment building located in central Lisbon. The development will feature 10 luxurious apartments within a brand-new structure at 48-50 Rua Braamcamp. According to Pier Paolo Righi, CEO of Karl Lagerfeld, the decision to use "Lisboa" instead of "Lisbon" for the name was deliberate, aimed at staying true to the city’s natural name and emphasizing an "inside out" approach to the architectural project.

The design of the Lisbon residences is meticulously crafted to capture Karl Lagerfeld’s famous aesthetic and varied interests. The property includes a Bauhaus-style garage and a clean modernist entrance. Wellness facilities will feature a spa, sauna, and treatment room. One unique feature is an underwater sound system in the pool, inspired by a system Karl Lagerfeld installed in his own home in Biarritz. The project also incorporates modern sustainable technology, including photovoltaic glass from Saint Gobain, which will illuminate the facade and exterior walls of balconies. Each apartment balcony will also feature a splash pool, further enhancing the blend of luxury and innovation.

Caroline Lebar, who served as Karl’s right-hand woman for four decades, played a key role in ensuring the project aligns with his vision. Lebar noted, "That’s beauty and sustainability amplifying each other. Karl would have loved that. Nothing he liked more than finding new solutions for everything." The 10 apartments range in size from 230 to 380 square meters. Righi anticipates an international clientele, given Lisbon's current appeal in the real estate market. With high-end property in the district selling for upwards of €20,000 per square meter, the project's total value is estimated to exceed €60 million. The building, scheduled for completion in January 2028, is a result of a licensing agreement with local developer Overseas and architectural firm The One Atelier.

The architectural design also carefully integrates with the surrounding environment, which includes a landmark 1972 department store and a 1960s structure with Bauhaus influences. Staggered columns bridge the difference in heights between the neighboring buildings. The residences are finished in a specific shade of red often used by Karl to finalize his sketches, and the facade incorporates ceramic tiles, referencing Portuguese and Iberian architectural traditions. The same tile design will be used in another Karl Lagerfeld project currently underway in Marbella.

Simultaneously, the brand announced its expansion into the Gulf region through a deal with AARK Developers for "Karl Lagerfeld Residences" on Al Marjan Island in Ras Al Khaimah (RAK). Valued at over $1.4 billion, this ultra-luxury waterfront development will offer 663 sea-view residences, ranging from one to four bedrooms, with select units featuring private pools. The project is scheduled for completion in 2028 and aims to redefine beachfront living in the UAE.

This expansion into real estate follows the success of earlier projects. Construction is advanced on Lagerfeld residences in Dubai, set to open in 2027, and in Marbella, where the first of five luxury villas are due for occupancy in summer 2026. The brand’s initial foray into hospitality, The Karl Lagerfeld in Macao, a hotel with no residential component, has proven highly successful since its opening three years ago. According to Righi, it maintains a high occupancy rate and was ranked first on Trip Advisor among 120 hotels in Macao this year, demonstrating the pulling power of Karl Lagerfeld’s name and wide-ranging DNA.

In terms of fashion, the brand continues to navigate a challenging international market. Righi stated that growth in 2025 has been "decently in single digits," though acknowledging that growth is "harder earned than ever." The company has invested in its KL Jeans line and expanded its retail footprint, opening 12 new stores this year in Latin America across countries including Chile, Panama, and Ecuador. The brand plans to open the same number of stores in the region next year, recognizing the significant "Lagerfeld family" presence there.

The brand's marketing strategy also reflects Karl Lagerfeld's philosophy of unexpected choices. The Fall 2025 campaign features Paris Hilton, a choice Righi describes as "very Karl," noting that he "would have picked the unexpected candidate." The black-and-white ads utilize the house’s neo-expressionist codes. Righi highlighted the genuine connection, explaining that Hilton has been a long-time fan and customer of the brand, showing photos of her children wearing Karl Lagerfeld. He believes the "halo effect" from these diverse projects and unexpected campaigns helps people realize that Karl "was so much more than a fashion designer" and could appeal to varied socioeconomic groups, from collaborations with Chanel and Fendi to H&M, underscoring his broad cultural impact.