The list of exclusive skyscrapers built under the names of renowned automotive brands is growing, signaling a trend that is here to stay. So far, Bentley, Bugatti, and Mercedes have made significant entries into the real estate market.
Recently, Mercedes-Benz announced plans to construct a 1000-foot-high skyscraper in the heart of Dubai. Following the German automotive giant, Bentley and Bugatti have also ventured into the real estate sector.
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On the other hand, Aston Martin is currently focused on renovating exclusive apartments in New York, seemingly testing the waters of the real estate market.
The Motive Behind the Shift to Real Estate
Many are rightfully curious why prestigious companies, which have invested in the automotive industry for decades, are now turning to real estate. It’s evident that the goal is to generate additional profit. Bentley, Mercedes, and Bugatti are premium brands with a century-long history of building a reputation for exclusivity and prestige.
Monetizing Brand Image Beyond Automotive Accessories
The executives of these companies likely pondered why they should limit the monetization of their hard-earned brand image to just keychains, shirts, jackets, coffee thermoses, and similar accessories. These products, despite their high prices due to the brand logo, are sold in large quantities.
However, the real question was why not capitalize on their brand through a much more valuable product? This led to partnerships between automotive companies and firms in the real estate sector.
Premium Real Estate: A Natural Extension of Luxury Brands
Don’t be misled; just as the production of a simple keychain or umbrella is outsourced, often to Chinese manufacturers, these luxury real estate projects are built by experienced construction companies.
What stands out about the skyscrapers associated with these automotive brands is their premium nature and locations. Bugatti and Mercedes have chosen Dubai, while Bentley’s skyscraper will serve residents in Miami. Naturally, the prices will also be premium.
Just as an ordinary umbrella produced in millions in China can command a higher price if branded with Bentley, the same principle applies to real estate. In Dubai, where the real estate market is saturated with luxury offerings, standing out is crucial.
Many affluent buyers, if unable to afford Burj Khalifa, might prefer an apartment in the “Mercedes skyscraper” over a generic building. This allows investors to earn significantly more per square foot with the same investment.
It’s no surprise that such a natural collaboration has occurred between these two seemingly different worlds.