The desert, endless expanses—yet not everything that glitters is gold in the emirate of Dubai, at least when it comes to securing prime sites for new developments. The most coveted waterfront locations along the Gulf are fiercely contested, as developers seek to satisfy surging demand.

While vast stretches of desert sand lie far from the Gulf coast in and around Dubai, options shrink year after year when it comes to premium factors such as location, transport connectivity, and quality of life, said Muhammed Binghatti, chairman of real estate developer Binghatti Holding, as he presented his new project, Mercedes-Benz Places by Binghatti, to an international group of media. The architecturally ambitious development comprises 11 high-rise towers and a central, spiralling skyscraper.

World’s first Mercedes-branded city launched

The developer therefore chose the Nad Al Sheba district, near the Meydan horse-racing track, to realise the joint project with Mercedes-Benz. «From here, future residents of Mercedes-Benz Places will reach Business Bay near the Burj Khalifa in seven minutes and the Dubai International Financial Centre in 12 minutes.»

The first affluent residents are expected to move into the 8.2 billion dollar worth Emirati-German joint venture in December 2026.

A studio apartment costs 1.6 million dirham (435,600 dollars), while a one-bedroom unit is priced at 2.6 million dirham (710,000 dollars), the chief executive said. Asked by finews Middle East whether he was concerned that the project could come to market just as the overheated property sector begins to cool, Axel Harries, Head of Global Customer Service and Parts at Mercedes-Benz, replied: «Mercedes looks back on a 140-year corporate history. The company has lived through many economic cycles, and we are prepared for volatility. The same rule applies in business as in nature: it's the survival of the fittest.»

Binghatti said momentum remained positive. «In 2025, we sold 17,000 units. The Mercedes-Benz Places project alone will comprise 13,386 units. We will complete the Mercedes project in December 2026.»

A visual treat for Dubai: the scale model of Mercedes-Benz Places by Binghatti and the project’s towers currently under construction. (Image: Gérard Al-Fil)

«Innovative carmakers, sluggish developers»

Since childhood, the Emirati entrepreneur said, he has missed in real estate the same wow factor found in automobiles. «At Binghatti, we consistently change that, because innovation is in our DNA. At Mercedes-Benz Places, for example, residents will be able to open and close the curtains using voice commands.» 

From the balconies, residents will see not only desert sand but also landscaped green parks, the Meydan horse-racing track, and nearby tennis and padel facilities. International schools and cycling tracks add to the family-friendly environment.

Data from Property Monitor show that Dubai recorded 200,780 residential property transactions last year, worth Dh541.5 billion ($147.7 billion) — an increase of 18.9 percent compared with the previous year.

However, Swiss banking giant UBS warned in its latest study of a potential bubble in the emirate’s property market. According to UBS analysts, market overheating intensified in 2025 compared with the previous year. Over the past 12 months, for example, purchase prices for residential apartments rose by an average of 16.5 percent, according to JLL.