Half of Binghatti Properties’ Mercedes-Benz branded project sold out a day after launch

The inaugural real estate venture for the German automotive giant, Mercedes-Benz Places, is a 65-story residential tower situated in Downtown Dubai.

A day after its launch, half of the properties in Binghatti Properties’ latest branded residences project, Mercedes-Benz Places, in Downtown Dubai, have already been sold out, indicating strong buyer demand in the thriving UAE property market, according to the company’s CEO. The residential project, announced in early December with a 65-storey structure, had a successful launch event at the Meydan Hotel on Wednesday. Muhammad BinGhatti stated that the response to sales within the two months since the project’s announcement has been “phenomenal,” confirming the sale of 50% of the project, expected to break ground later this year. Mercedes-Benz Places, the first branded property project by the German auto giant, will consist of 150 residences ranging from two to four-bedroom units and five penthouses with unobstructed views of the Burj Khalifa. Unlike other branded projects in the city, buyers of apartments in this development will not receive a new Mercedes car. Additionally, the southern facade of the building, facing away from the Burj Khalifa, features cladding that not only provides sun shading but also generates electricity for up to 40 electric vehicles daily, as mentioned by Mr. BinGhatti.

Muhammad BinGhatti, chief executive, Binghatti Properties and Britta Seeger, member of the board of management of Mercedes-Benz Group AG, Marketing & Sales, sign the partnership agreement.
Muhammad BinGhatti, chief executive, Binghatti Properties and Britta Seeger, member of the board of management of Mercedes-Benz Group AG, Marketing & Sales, sign the partnership agreement.

Explaining the concept, he mentioned that the design is a single-leaf configuration, with all units facing Downtown on the front elevation, while the rear showcases a solid facade with integrated photovoltaic systems.

This side of the facade is deliberately designed to align with the solar path, ensuring complete shading on one side and a more open configuration on the other.

The elliptical exterior of the building draws inspiration from the curves of recent Mercedes-Benz models, such as the Vision EQXX, Vision One-Eleven, and the Concept CLA Class, unveiled at the IAA Mobility 2023 show in Munich.

The project’s anticipated completion date is set for the fourth quarter of 2026.

The exterior of the Binghatti Burj, a partnership between Binghatti and Jacob & Co. The tower will become the world's tallest residential tower once completed. Photo: Burj Binghatti
The exterior of the Binghatti Burj, a partnership between Binghatti and Jacob & Co. The tower will become the world’s tallest residential tower once completed.

After the successful launches of Bugatti Residences in Dubai’s Business Bay and Burj Binghatti Jacob & Co Residences, Mercedes-Benz Places marks Binghatti Properties’ third branded project in the city. According to Mr. BinGhatti, sales in both Bugatti Residences and Burj Binghatti Jacob & Co Residences are thriving, prompting the upcoming launch of the second phase in each development. The CEO mentioned the remarkable achievement of hitting a billion dirhams in sales for Jacob & Co and exceeding a billion dirhams in sales for Bugatti. Both projects have fully sold out their initial phases, leading to preparations for the introduction of phase two.

In 2023, Dubai’s luxury housing market achieved record-breaking levels, with sales of homes valued at $10 million or more nearly doubling to $7.6 billion. This surpassed global counterparts London and New York, as reported by property consultancy Knight Frank. During the first nine months of the year, Dubai saw twice as many sales of $10 million-plus homes compared to New York, with 323 transactions in Dubai and 159 in New York. Faisal Durrani, Head of Research for Mena at Knight Frank, emphasized Dubai’s position as the “world’s most active $10 million-plus homes market.”

According to Mr. BinGhatti, branded residences provide developers with access to a more global audience. He emphasized that these well-established brands with a century-long global presence have widespread fan bases, presenting a new market for developers like Binghatti Properties.

Although the Downtown Dubai site is among the last areas available for development, Binghatti Properties recently acquired a Business Bay plot for Dh370 million ($100.7 million). Mr. BinGhatti mentioned that the forthcoming development on this land will be luxurious, but the decision on whether it will be a branded project is yet to be finalized.

“It is a luxury development, but we haven’t really decided if this is going to be branded or not,” he stated. Binghatti Properties remains discerning in collaborations, seeking those that bring added value to both the developer and the brand. While open to possibilities, Mr. BinGhatti specified that any potential collaboration would likely come from a different industry, building on their experience in automotive and horology.

Regarding the Dubai property market, which has been on an upward trend since Covid-19, Mr. BinGhatti predicted continued growth, albeit not as rapid. He anticipates a steady increase in prices, estimating a range of 10% to 15% over the next 12 to 18 months.

“I do expect something between a 10 [per cent] to 15 per cent increase over the next 12 to 18 months,” he mentioned, emphasizing the sustained but moderated growth in the market.

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