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65-story tower valued at $1 billion, expected to be completed in the fourth quarter of 2026
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Mercedes-Benz has ventured into the real estate market with the launch of “Mercedes-Benz Places”, a luxury residential tower in Dubai developed in collaboration with Emirati developer Binghatti.
The 65-story, $1 billion tower, which is expected to be completed in the fourth quarter of 2026, will sit about 1,118 feet above downtown Dubai and offer 150 high-end apartments, the New York Post reported.
Costing up to $10 million, the tower is expected to offer stunning 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 association with luxury car logo Bugatti in a previous residential project, has already sold the available apartments in the first phase of the tower with the Mercedes logo. Additionally, Binghatti has ambitious plans for long-term projects, adding a partnership with luxury jewelry and watch company Jacob
Despite considerations about the real estate advertising sector, especially in the U. S. , there is still a lot of interest in the real estate industry. In the U. S. , where occupancy rates in cities like New York have been sluggish since the pandemic-induced shift to remote work, Binghatti CEO Mohammed Binghatti remains optimistic. He attributes this optimism to Dubai’s prestige as a hub for wealth migration and population growth, offering opportunities for market expansion.
Meanwhile, in the United States, the real estate advertising market faces challenges: occupancy rates in cities like New York soar to around 48%, particularly at pre-pandemic levels. This decline has generated monetary stress, and banks are facing genuinely large losses on loans to the advertising real estate market. Researchers estimate that lenders may need to renegotiate more than $1. 5 trillion of their advertising real estate portfolios through 2025 to default values.
-Ted Glanzer