Mercedes-Benz has debuted a $1 billion luxury residential tower in Dubai, where apartments are expected to cost as much as $10 million each.
The luxury car company, dubbed Mercedes-Benz Place, has announced its entry into the real estate industry. Instagram This is being done in collaboration with UAE developer Binghatti.
The 65-story building will rise approximately 1,118 feet above downtown Dubai's busy metro when completed in the fourth quarter of 2026, according to the United Arab Emirates-based business news site. That's what it means. Zawiya.
For reference, the Chrysler Building in New York City is 1,048 tall.
It will feature 150 apartments, priced from $2.7 million, and promises “unobstructed views” of the nearly 3,000-foot-tall Burj Khalifa, according to Mercedes' website.
According to the German automaker's Instagram post about the joint development, the glass-enclosed Mercedes-Benz Place will feature “a distinctive oval shape reminiscent of the flowing lines of many ultra-modern Mercedes-Benz vehicles. The purpose is to “emphasize” the appearance of the shape. [the company’s] It is a strategy to strengthen our position as the world's most attractive car brand. ”
According to , Binghatti is the first of its kind for the automaker. bloomberg.
Meanwhile, Binhatti is currently working on a housing project with fellow luxury car maker Bugatti. Bugatti has hired a real estate developer for the project, which includes an elevator to take cars to its penthouse, and construction began in Dubai last year. bloomberg report.
The company has already sold 32 of Bugatti Residences' 182 units, with buyers selling for as much as $2,620 per square foot, some of the highest prices in Dubai history, according to the store.
Binhatti did not disclose the number of apartments sold in the Mercedes-branded tower, only revealing to Bloomberg that all available housing was sold in the first phase.
Binhatti is also partnering with high-end jewelry and watch company Jacob & Company for what will be the world's tallest residential building, located in the wealthy Emirati city.
According to Bloomberg, Binhatti CEO Mohammed Binhatti is reportedly not worried about the economic slowdown, despite recent warnings that there are “massive” problems within the commercial real estate sector. There is.
The company has spent $330 million on land in the past three months alone, Binhatti told the magazine, “We'll definitely see more growth this year and next.”
“Dubai has a clear migration of wealth and population growth, which gives the market room for organic growth,” he added.
Many of those coming to Dubai already have the liquidity to deploy. They are looking for a safe place to invest. ”
Representatives for Mercedes and Binhatti did not immediately respond to The Post's requests for comment.
But in the United States, Larry McDonald, founder of financial analysis firm The Bear Trap Report, likened the real estate market to a “slow-moving train wreck.”
Since the pandemic, New York City has been stuck in a so-called “urban doom loop” caused by the influx of work from home during the pandemic, a trend that continues despite mandated returns to offices. .
The concept of a doom loop is defined by empty office towers, destroying quality of life and ultimately displacing residents.
In the Big Apple, occupancy has only recovered to 48.4% since the pandemic.
However, office occupancy rates were strong at 90% at the beginning of 2020, but plummeted to 10% due to the coronavirus outbreak.
In a research report, researchers from Columbia University, Stanford University, the University of Southern California, and Northwestern University found that banks hit by a wave of landlord defaults have increased their lending to the commercial real estate market by as much as 1. It is said to have a loss of $60 million. The National Bureau of Economic Research announced this last month.
The damning findings support Morgan Stanley's previous calculations that showed lenders would need to negotiate more than $1.5 trillion in commercial real estate portfolios by the end of 2025 to avoid default. .
