Half of the properties in Binghatti Properties' latest branded residences project in Downtown Dubai – Mercedes-Benz Places – have sold out a day after it was launched, signalling robust buyer demand on the back of the UAE’s vibrant property market, its chief executive has said.
Having announced the 65-storey residential project in early December, the Dubai developer hosted the launch of the project on Wednesday in the Meydan Hotel.
The response to the sales since it was announced less than two months ago has been "phenomenal", Muhammad BinGhatti told The National on Thursday.
Binghatti Properties
He confirmed that 50 per cent of the project, which is expected break ground this year, has already been sold.
Mercedes-Benz Places – the German auto giant's first branded property project – will have 150 residences of two- to four-bedroom units and five penthouses that will have uninterrupted views of the Burj Khalifa.
Unlike with many of the branded projects that have been launched in the city, however, buyers of apartments in the new project will not receive a brand new Mercedes car.
The southern facade of the building – the opposite side facing the Burj Khalifa – features cladding that provides shading from the sun and provides electricity for up to 40 electric vehicles per day, Mr BinGhatti said.
"The idea is that it's a single-leaf design. The front elevation is all units facing Downtown and the rear is this solid facade that features these photovoltaic systems," he said.
"It's also designed on that side of the facade in line with the solar path. That's why we kept that side completely shaded and the other side more open."
The building's elliptical exterior is influenced by the curvature of some of the latest Mercedes-Benz cars, including the Vision EQXX, the Vision One-Eleven and the Concept CLA Class, which was unveiled at the IAA Mobility 2023 show in Munich.
The project is scheduled to be delivered by the fourth quarter of 2026.
Mercedes-Benz Places is Binghatti Properties' third branded project in Dubai, after the launches of Bugatti Residences by Binghatti in Dubai’s Business Bay and Burj Binghatti Jacob & Co Residences.
Sales in both projects are "doing very well" and they are about to launch the second phase in each development, Mr BinGhatti said.
"With Jacob & Co, we've just hit a billion dirhams in sales. In Bugatti, we've just exceeded a billion dirhams in sales. On both of those, we've successfully sold out phase one and now we're preparing to launch phase two."
Dubai's luxury home market reached record levels in 2023, with sales of $10 million-plus homes nearly doubling to $7.6 billion and outstripping global rivals London and New York, according to property consultancy Knight Frank.
Twice as many $10 million-plus homes were sold in Dubai than in New York during the first nine months of the year – 323 in Dubai compared with 159 in New York, Knight Frank said.
The figures underline Dubai's status as the “world’s most active $10 million-plus homes market", according to Faisal Durrani, head of research for Mena at Knight Frank.
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The Palm Jumeirah saw the majority of deals in luxury and super luxury sales in Dubai in 2023. AFP -
At 450m, the Franck Muller Aeternitas tower will be one of the tallest in the city when complete in 2027. It will feature 649 one, two and three-bedroom apartments, plus duplexes, over 106 floors – all topped by a giant clock. Photo: London Gate -
Bayz 101 by Danube will have 1,346 apartments and is the developer's largest project to date in terms of both units and overall space. Photo: Danube Properties -
Sharjah property developer Arada has launched sales for its luxury project in Dubai, the Armani Beach Residences at Palm Jumeirah. Prices start at Dh21 million ($5.7m). Photo: Arada -
Designed by Japanese Pritzker-Prize-winning architect Tadao Ando, in collaboration with fashion icon Giorgio Armani, Armani Beach Residences features 53 two to five-bedroom residences, plus penthouses and two presidential suites. Photo: Arada -
One of the largest private penthouses in Dubai is on sale for Dh600 million. It comprises the three top-three levels and rooftop of Raffles The Palm Dubai Residences. Photo: Emerald Palace Group -
Dubai's AHS Properties has launched a $850 million project called Casa Canal, located at Dubai Water Canal. Photo: AHS Properties -
Casa Canal will have a mix of residences, including three-bedroom penthouses, four and five-bedroom villas and six-bedroom mansions. Units are priced between Dh22.5 million and Dh185 million and the project is set to be delivered in late 2025. Photo: AHS Properties -
Nakheel, the developer behind The Palm Jumeirah, launched the first waterfront villa project on the Palm Jebel Ali in 2023. Leslie Pableo / The National -
The launch of properties on four fronds of Palm Jebel Ali offer two types of homes – coral and beach villas, says Nakheel. Photo: Nakheel -
Dubai developer Sankari Properties is building a $1 billion ultra-luxury project in Marasi Business Bay. Units will start at $10 million. Photo: Sankari Properties -
Damac launched Cavalli Couture on Dubai Water Canal in 2022. The 14-storey building features 70 units, comprising three, four and five-bedroom duplex sky villas and duplex penthouses. Photo: Damac -
Jumeirah Bay Island is one of Dubai's prime residential neighbourhoods. Photo: Bulgari -
There were close to 50 sales of Jumeirah Bay Island properties in excess of $10 million in 2023. -
Also much sought-after is The Mansions, Lanai Islands, Tilal Al Ghaf, Dubai. Photo: Knight Frank -
A luxury villa in Dubai's Emirates Hills sold for Dh102.8 million in 2022. Photo: Phoenix Homes
Branded residences offer the developer "a more international audience", Mr BinGhatti said.
"These brands have existed globally for more than a century. They have fan bases all around the world, so it opens up a new audience for us."
While the site in Downtown Dubai is one of the last areas to be developed, Binghatti Properties has recently acquired a plot of land in the neighbouring Business Bay for Dh370 million ($100.7 million).
Mr BinGhatti stated that the upcoming development on this land will be luxurious, but not necessarily branded.
"It is a luxury development, but we haven't really decided if this is going to be branded or not," he said.
"We're always on the lookout for collaborations that we see beneficial for us as a developer and as a brand, but we're very selective and very wary of who we're collaborating with and who we're participating with. If we don't see an added value, it's not something we'll jump at.
"It has to be something that adds value to our portfolio. We've done automotive, we've done horology, so if there is anything on the horizon, it would be something from a different industry, if we are to consider it."
Dubai's property market, which has been on the rise since Covid-19, will see further growth but not at the same rate, according to Mr BinGhatti.
"What I foresee moving forward is we will see a continuous increase in prices. However, it won't be as sharp as the year before but it will steadily continue to grow," he said.
"I do expect something between a 10 [per cent] to 15 per cent increase over the next 12 to 18 months."
