In the realm of property development and holding companies, few names shine as brightly as Binghatti. Established by the esteemed Emirati entrepreneur, Dr. Hussain BinGhatti, and his visionary sons, Binghatti has left an indelible mark on the landscape of the United Arab Emirates. At the helm is Muhammed BinGhatti, a dynamic leader and the driving force behind Binghatti’s remarkable success.
In an exclusive interview, we dive deep behind Binghatti’s meteoric rise and its pivotal role in shaping the UAE’s real estate landscape. As we explore the company’s journey, we discover a remarkable blend of passion, innovation, and unwavering dedication to excellence.
Can you please tell us about Binghatti‘s journey and how it has become one of the leading property brands in the UAE with a portfolio of prime projects in Dubai?
The journey has undoubtedly been a tremendous challenge. From the very beginning, Binghatti has remained a family-owned and privately-owned business, driven by a strong entrepreneurial spirit. Our mission and vision were crystal clear: to redefine the entire real estate industry. We drew inspiration from various industries such as automotive, fashion, and horology, all of which share a common trait – a distinct brand ethos and design philosophy that permeates their product lines. At Binghatti, we strived tirelessly to achieve this same level of iconic architecture and design philosophy. This vision became our guiding principle. Rapidly expanding our portfolio across Dubai and the UAE, we ventured into multiple segments of the market. Throughout this journey, our core pillars of integrity, delivering projects ahead of schedule, and providing unparalleled quality and value for money have been instrumental. Binghatti Benji is renowned for developing properties with exceptional architectural design.
How does the company approach the process of creating such unique and aesthetically appealing buildings?
The approach we embrace at Binghatti draws significant inspiration from the automotive industry. Similar to designing a car, our process involves extensive prototyping. Our ideas stem from an emotional perspective, always driven by a captivating story. This approach mirrors that of leading automotive brands that have set the industry standard for centuries, and it’s the approach we have adopted at Binghatti. When you enter a luxury apparel store, each product, whether it’s a watch, bracelet, handbag, or even a car, has a unique story behind it. This is precisely the approach we have implemented at Binghatti – no product is without a story and a narrative. The story and brand philosophy serve as the foundation, guiding the entire design process. We are deeply committed to building a remarkable brand, placing greater emphasis on this than on purely commercial considerations. We firmly believe that by creating an exceptional brand, commercial success naturally follows. This approach has proven immensely successful for us.
Could you please elaborate on the partnerships Binghatti has formed with global luxury brands like Bugatti and Jacob & Co? How do these partnerships contribute to the overall value proposition of the company’s projects?
Our vision has always been to challenge conventions and redefine the rules of the game. Both Bugatti and Jacob & Co embody this very spirit in their respective industries, having done so for many years. Take Bugatti, for example, with a history of consistently achieving unparalleled excellence and dominating their industry for hundreds, if not more, years.
For us, it is crucial to learn from their invaluable experience and leverage it to translate the narrative from the automotive and horological worlds into the realm of real estate. Equally important to us is being the first.
Being the first to introduce Bugatti-branded residences worldwide, as well as the first Jacob & Co residences, is a significant distinction we seek to attain. This uniqueness serves as a key selling point, aligning with our brand vision. With an investment value exceeding AED 10 billion, Binghatti holds a substantial financial presence in the real estate market.
What strategies has the company employed to achieve such significant growth and success?
Holistically, our primary focus has always been on integrity. We heavily invest in developing our projects on time and ensuring exceptional quality. At the mother company level, we have a dedicated quality team with full autonomy and authority to oversee the engineering aspects of our projects. Establishing such a reputation in the market leads to trust and confidence from investors. From a financial standpoint, we are predominantly self-financed and maintain a conservative approach towards debt. The majority of our growth has been fueled by the company’s free cash flows. It is worth noting that Dubai boasts a highly competitive real estate market.
How does Binghatti differentiate itself from other developers and maintain a competitive edge?
We drew inspiration from renowned global brands across various industries. Our journey with customers or clients, from the initial stages until project handover and even beyond, is an engaging and visually captivating experience. At Binghatti, you can closely follow the progress of building your property through multiple platforms, similar to the experience of ordering a Bugatti. This approach is a direct result of our admiration for these industries. Furthermore, we prioritize exceptional customer service. As an example, we have a tradition of personally calling clients on their birthdays to extend our warm wishes.
We strive to establish a relationship with clients that goes beyond the corporate realm, embodying our family business heritage. Our goal is for every client to feel valued, important, and connected to something greater — to become part of the Binghatti family. This approach serves as a significant reason for our success and acts as our unique selling point, setting us apart from competitors. Additionally, our vertical integration as a business practice allows us to have control over the supply chain, ensuring quality, timeliness, and cost-effectiveness. We manufacture the joinery used in all our buildings and produce our aluminum, which guarantees a consistent level of quality in everything we deliver.
Sustainability and eco friendliness have become increasingly important in the real estate industry.How does Manhati incorporate these principles into the projects? And what initiatives does the company undertake to minimize the environmental impact?
We have three main approaches that distinguish our projects. The first revolves around site management itself, where we ensure waste management that is fully compliant with global green building regulations. Within Binghatti, we have a dedicated in-house sustainability team that oversees material selection. For instance, our HVAC systems adhere to global Ashray standards, and the glass we choose exhibits higher Solar Reflectance Index (SRI) values compared to standard blocks. These materials are not only high-performing but also highly sustainable.
The second approach pertains to human sustainability, which may be considered unconventional. In the case of Bugatti Residences by Binghatti, we prioritize the well-being of residents. The project offers more than just a spa; it encapsulates the essence of the French Riviera, providing a rejuvenating experience akin to visiting a resort in that region. The project’s amenities, including the Riviera-inspired beach, are designed with this notion in mind.
Binghatti has successfully developed numerous prime projects in Dubai, each reflecting our commitment to excellence and innovation. Can you highlight some of the standout projects and their significance within the company’s portfolio?
We have previously announced remarkable projects such as Bugatti Residences, Jacob & Co Residences, and Binghatti Avenue, which had an investment value of half a billion dirhams. Binghatti Avenue stands out as a particularly challenging endeavor since we launched it just before the onset of the COVID-19 pandemic. Despite the unprecedented circumstances, we persevered with sales and construction, even obtaining special permits to drive on empty roads to ensure the site’s continuous progress. We remained committed to investing in the project, undeterred by disruptions in the sales and marketing process. This project holds a special place in my memory due to the obstacles we overcame.
Additionally, projects like Binghatti Canal and Business Bay, which were delivered three months ahead of schedule, and Binghatti Creek, achieved record-breaking construction timelines. For example, Binghatti Creek, a 24-storey tower, was developed from start to finish in just 11 months. These projects exemplify the company’s success in upholding integrity and providing valuable investments for our clients. While the real estate market can be subject to fluctuations and challenges, we have consistently proven our ability to navigate through them.
How does Binghatti navigate these uncertainties and ensure the long term sustainability of projects and investments?
Vertical integration plays a significant role, and our adaptability is a key strength. As a closely-knit team, we embrace a hands-on approach, and this includes myself. We take pride in being actively involved in every aspect of our work, leaving no room for hesitation. It is this hands-on mentality that has been the primary driving force behind our success.
As a CEO of Binghatti, what is your vision for the company’s future? Are there any upcoming projects or expansion plans that you would like to share with us?
When we initially started, our first phase focused on establishing the brand identity. We aimed to position ourselves as more than just a real estate developer; we strived to become a brand. That was phase one. In my vision, phase two involves incorporating technology into our properties. I firmly believed that the real estate industry had a lot of ground to cover in comparison to other industries, such as the automotive sector. Collaborating with the automotive industry presented an incredible opportunity for us to learn from their advancements.
Let me give you an example that I often use. When you sit in a car, its primary function is to transport you from one point to another. However, if you look at the capabilities of cars today, they have evolved tremendously. You have hypercars, luxury cars, and even cars that provide massages as you sit in them. The technology integrated into cars has been highly successful in the market. Interestingly, the cost of developing such technology in the automotive sector is far more manageable compared to implementing similar innovations in real estate. For instance, if I wanted to create a door that automatically moves with a simple gesture, like some cars today, the cost would be significantly higher to execute in a real estate setting. This is precisely what Binghatti aims to change. We strive to revolutionize the entire real estate industry by commercializing products that excel in design and execution, offering much more value than mere shelter.