Dubai property group Binghatti Developers and luxury car brand Mercedes-Benz are set to launch a property project worth Dh30 billion ($8.2 billion), as demand for prime housing continues to soar in the city.
The project in Meydan, called Mercedes-Benz Places – Binghatti City, is spread across 10 million square feet (929,000 square metres), the companies said on Tuesday.
The multi-tower project is set to be launched on January 14, 2026 and is the developer’s first masterplanned community. The two companies also collaborated for the Mercedes-Benz Places project in Downtown Dubai last year.
With the new development, they aim to "create a complete city within a city", Muhammad Binghatti, chairman of Binghatti Developers, said.
The property market in Dubai has benefitted from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.
The value of sales of homes in Dubai worth more than $10 million jumped 54 per cent annually in the third quarter, consultancy Knight Frank said in its quarterly review of Dubai’s property market last month.
Prime home prices are set to increase by 3 per cent next year, “underpinned by continued robust international HNWI [high net-worth individuals] demand for premium homes, the continued inflows of global wealth [and the global wealthy] and a deepening pool of resident investors”, the report added.
Dubai remained the “world’s busiest $10 million-plus market” globally in the third quarter, recording 103 deals, up 24 per cent annually, Knight Frank said.
The UAE is expected to attract a record 9,800 relocating millionaires this year, drawn by regulatory reforms and a tax-free lifestyle, a report by Henley & Partners and wealth intelligence firm New World Wealth found. In 2024, Dubai had an estimated 81,200 millionaires and 20 billionaires.
Mercedes-Benz Places – Binghatti City has been planned as a “self-sustained urban ecosystem”, with luxury residences, cultural and leisure districts, retail boulevards, parks, mobility hubs, wellness zones, dining, entertainment and community spaces, according to the statement.
The project is designed to offer residents everything they need within walking distance, the companies said.
Binghatti Holding, which has a portfolio of 80 projects valued at more than Dh80 billion, has delivered more than 12,500 residential units.
Its previous project with Mercedes-Benz, which marks the German car maker's first branded property project, is a 65-storey residential tower with 150 residences. Half of the project sold out a day after it was launched in January last year. It is scheduled to be delivered by the fourth quarter of 2026.
Mercedes-Benz Places was 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.
In the UAE, branded residences generally command a 25 per cent to 50 per cent price premium over comparable non-branded products, on a like-for-like basis across location, specification and unit size, according to Prathyusha Gurrapu, head of research at property consultancy Cushman & Wakefield Core.
"Hospitality-led brands such as Amani, Cheval Blanc, Four Seasons, Mandarin Oriental, and Bulgari typically sit at the upper end of the spectrum and can command higher premiums," she said.
"Lifestyle or design-led brands [fashion or automotive] tend to achieve more moderate premiums, depending on brand strength and execution."
The premium is usually highest for prime waterfront or trophy locations such as Palm Jumeirah, DIFC, Downtown Dubai, and Saadiyat Island.
Branded projects could be particularly appealing for overseas buyers who may not be familiar with local developers.
The rise of branded residences is also closely linked to wealth migration trends, with the UAE attracting record numbers of millionaires annually, she said.
Buyers of such units must check whether the brand is actively managing the property, or if it is primarily a licensing arrangement, Ms Gurrapu said.
"Certain brands, particularly non-hotel brands, offer limited value other than just the brand name. Look for properties with genuine service elements, especially from established hospitality brands."
Buyers must also check developer track record and usage restrictions, with some branded schemes limiting leasing flexibility or short-term rentals.
