The latest buzz in the Dubai property market is all about a new Mercedes-branded tower, the latest example of the branded residence phenomenon hitting cities around the world.
A few days ago the famed car maker announced it is teaming with a developer to build Mercedes-Benz Places, a 65-story tower in the heart of downtown Dubai, with unobstructed views of the iconic Burj Khalifa, the world’s tallest building. The tower’s sleek design reflects the shape of Mercedes’ luxury cars, and elements of the brand and style will be evident throughout the building, where 150 apartments start at $2.7 million.
The project was big news, and then a few days later the developer, Binghatti Properties, shared this jaw-dropper: the project is already half sold. That’s impressive, even in Dubai’s over-heated market.
The Mercedes name has a lot to do with the success, Muhammad BinGhatti told The National. 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.
Branded residences appeal to “a more international audience,” 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.”
At PPR, we’ve been talking about the value proposition for branded properties quite a bit lately. We’ve seen firsthand how brands like Yoo and Fendi can jump-start interest and deliver a better experience for buyers. (We also know for a fact that one of the most influential brands in the world is going to be launching soon in Panama. We just can’t talk about it yet. Stay tuned!)
Mercedes-Benz Places is the auto maker’s first move into residential property development and another example of the rapidly expanding interest in branded residences, which offer a unique experience and long-term value.
Branded residences tend to bring a premium price, but deliver the quality, atmosphere, and lifestyle associated with the brand. They sell quicker, and rent more efficiently, studies show, in large part due to the value associated with the name brand.
BinGhatti says his other branded residences are selling quickly. “On both of those, we’ve successfully sold out phase one and now we’re preparing to launch phase two,” he said.
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