Mercedes-Benz Drives Into Real estate Market With Dubai Tower – The Real Deal

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Mercedes-Benz has ventured into the real estate market with the debut of “Mercedes-Benz Places,” a luxury residential tower in Dubai developed in collaboration with Emirati developer Binghatti. 

The $1 billion, 65-story tower, expected to be completed in the fourth quarter of 2026, will rise approximately 1,118 feet above downtown Dubai, offering 150 upscale apartments, the New York Post reported

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With prices ranging up to $10 million, the tower is expected to have unobstructed views of Burj Khalifa, the world’s tallest tower.

The design of Mercedes-Benz Places features a distinctive elliptical exterior inspired by the sleek lines of modern Mercedes-Benz cars. Binghatti is the first real estate venture for an automaker, reflecting a trend of luxury car manufacturers entering the real estate market.

Binghatti, known for its partnership with luxury car brand Bugatti on a previous residential project, has already sold out the residences available in the first phase of the Mercedes-branded tower. Additionally, Binghatti has ambitious plans for future projects, including a partnership with luxury jewelry and watch firm Jacob & Co. for what is set to become the world’s tallest residential building in Dubai.

Despite concerns about the commercial real estate sector, particularly in the US where occupancy rates in cities like New York have been slow to recover since the pandemic-induced shift to remote work, Binghatti’s CEO Mohammed Binghatti remains optimistic. He attributes this optimism to Dubai’s status as a hub for wealth migration and population growth, providing opportunities for market expansion.

Meanwhile, in the U.S., the commercial real estate market has faced challenges, with occupancy rates in cities like New York hovering around 48%, significantly lower than pre-pandemic levels. The decline has led to financial strain, with banks potentially facing substantial losses on loans to the commercial real estate market. Researchers estimate that lenders may need to renegotiate over $1.5 trillion of their commercial real estate portfolios by 2025 to prevent defaults.

— Ted Glanzer

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