You’ve got the handbag, the sunglasses and a wardrobe full of the designer clothes. You might even own a piece from the furniture range. But would you want to live in a home entirely designed and branded by Versace? That’s what the fashion house is hoping. It will open a hotel in Dubai in June next year, with 169 private flats attached – every inch of which will be designed and furnished by Versace, down to the £175 dinner plates.

Palazzo Versace Dubai, one of what the group hopes will eventually be 16 branded resorts around the world, is ostentation on the highest scale, inspired by Gianni Versace, the fashion house’s late founder, who once declared: “I don’t want to dress people, I want to dress the environment people live in.”

Hand-cut mosaics will line the floors of each individually designed flat. The communal spaces will have giant aquariums full of fish imported from the Red Sea, temperature-controlled flooring that stays at a constant 20C – useful in a country where temperatures can reach the high forties in the summer months – and an underground car park with spaces large enough for your Roller or Bentley. There is also an ingenious underbeach cooling system to ensure you don’t burn your perfectly pedicured feet on your way down to the sea.

The project’s launch reflects the continued strength of the prime residential property market across the world. While the rest of us struggle with the effects of the credit crunch on our mortgages, the world’s multimillionaires, it seems, are still buying – at least for now.

Each residence comes equipped with everything from cushions and cutlery to water glasses and bed linen. The larger ones have a private cinema, a library and a sauna – and, in the case of the most expensive, their own mosaic-lined 26ft x 13ft pool, spa bath and outdoor terrace. About 90% of them have views of the creek that runs through the heart of Dubai; the remainder look out onto the manicured water gardens. If you’re not into Versace, then tough – this isn’t a place for lovers of rustic chic and eau de nil.

“This is where you can eat from a plate that costs $350, then have a bath and emerge into a bathrobe that costs $3,500,” says Soheil Abedian, president of the Sunland Group, the Australian company developing the resort. “Living in a Versace condo is an experience only a privileged few will have.” The actress Kate Hudson will be one of them, having apparently bought a 2,210 sq ft flat for £2.23m.

You are paying for the brand, of course – even Sunland concedes that there is a premium of about 10% for the name. Prices range from £1.85m for a two-bedroom, 1,825 sq ft flat to £12m for a six-bedroom, 10,000 sq ft showcase penthouse. The furniture alone, included in the price, costs £200,000-£275,000 per flat.

And to take advantage of the hotel facilities, you’ll have to pay: £2.50 per sq ft per annum, plus £5,000 a year if you want a daily cleaner.

By comparison, a three-bed, 1,679 sq ft unfurnished flat in the Estate tower, in the same Culture Village area of Dubai, can be had for a mere £441,000 (at www.decdubai.com). The company, which has already sold 100 units to private investors outside the UK, says it is initially releasing only 20 units here. More will go on sale in a few months – by which time it hopes to be able to charge more. While prices in Britain and America are falling, they are still rising in Dubai – scene of an extraordinary boom over the past few years – though at a much slower pace.

This is not Versace’s first foray into the residential property market. Its first Palazzo Versace development, on the Gold Coast of Australia, opened in 2000, with 72 residences, and Dubai, the undisputed bling capital of the Middle East, seems the obvious follow-up.

“It is an affordable destination – but a luxurious one,” Abedian says. “There are seven flights daily between London and Dubai with Emirates alone. It’s at the forefront of development – one-third of the total cranes in the world are in Dubai, and the entire country has been built in 12 years. That is why we decided to do a second hotel there.” The company is planning its next two resorts, in Goa and Abu Dhabi, and intends eventually to have developments in India, China, Russia, London, Paris, Rome and New York.

For those unsure whether investing in such a heavily branded home is a good idea, Abedian points to the success of the original Australian development. He claims several properties have been resold since the launch, with owners making as much as 100% profit in some cases.

Versace’s characteristic style – even in the “minimal” form it promises for Dubai – is not, however, to everyone’s taste. “Versace is a bit like Marmite – either you love it or you hate it,” says Camilla Mabbott, director of C&M Consultants, a London-based marketing agency that specialises in branding. “Dubai is perfect, because it’s all about the brands and what you’re seen with – and it’s quite a saturated market, so having a big point of difference probably helps.”

Bill Blevins, an international investment and tax adviser, agrees. “Obviously, it’s a gimmick, but it’s a gimmick that has market appeal,” he says. “It’s likely to be successful in Dubai, which attracts the kind of people that brand names will appeal to.” He is more sceptical, however, about how well the formula will work in Goa or the other locations that Versace is targeting.

London could prove even more of a challenge. Abedian says he would like to give Candy & Candy, the duo behind some of the city’s most expensive developments, “a run for their money”, but some are not convinced. “I’m not sure the Versace look is what people would want in London,” says Robert Bailey, a property-finder for the rich and famous. “In Dubai, people expect overt ostenta-tiousness, but I’m not sure how well it would go down in London.”

Nor does Versace have the market to itself. In Dubai, its rival, Giorgio Armani, is involved in the development of the £2 billion, 2,684ft-high Burj Dubai tower, which will have 144 residences, with prices starting at £2.4m for a one-bed and rising to £4.9m for a two-bed. It is due to be completed early next year.

Gabriella de Biase, media manager for the hotel, says buyers will be by invitation only, drawn from the Armani database. “Not everybody is allowed to participate in this product,” she says. “We want to address a select audience.”

The company is planning to roll out 30 hotels around the world, most of them including residences. One in Marrakesh, with 60 properties, is expected to be completed in 2010. “Mr Armani is handling everything in terms of style, image and communication,” de Biase says, “from the furnishings to the interiors, floorings, all details.”

So, the race is on. Who will build the biggest, most blinging resort? Time will tell, but in the meantime, you can ease yourself in with the bag, the sunglasses and the clothes – and maybe even a stick of furniture or two.

Fashion statements

Bahamas: Pointe Nirvana is an eight-acre private estate on Chub Cay, in the Berry island chain. The private family villa has four suites and 360-degree sea views.

For sale for £4m with Savills International; 020 7016 3740, www.savills.com/abroad

Miami: the 65 Cipriani Club Residences are attached to a new Cipriani hotel. They range from 1,000 sq ft to a 10,600 sq ft penthouse.

For sale for £500,000 to £16.5m with Quintessentially Estates; 0845 224 3658, www.quintessentiallyestates.com

France: a 19th-century chateau, 20 minutes from Angers, in the Loire valley. It has 16 bedrooms, three separate houses in the 106-acre grounds and a private lake.

For sale for £5.6m with Savills International; 020 7016 3740, www.savills.co.uk/abroad

Monaco: a 1,722 sq ft, two-bed contemporary loft apartment in the heart of Monte Carlo. All rooms are wired for sound and there is a TV in the bathroom.

For sale for £3.2m with Knight Frank; 020 7629 8171, www.knightfrank.com

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