Global real estate consultancy Knight Frank reports that property prices in Burj Khalifa have risen 23 percent to Dh2,100 per sqft as demand for luxury properties remains strong. However, the prices are still 30 percent below the 2014 level in the world’s tallest building.
“The theme for 2021 has been the exponential rebounding of Dubai’s luxury residential market. At almost Dh2,100 per square foot, the Burj Khalifa falls squarely into this category. Indeed, prices in the world’s tallest building rose by 23 percent last year, compared to a more modest eight percent for the rest of Dubai,” said Faisal Durrani, Partner, Head of Middle East Research, Knight Frank.
“While average prices in the Burj Khalifa, like the rest of Dubai, remain some 30 percent below 2014 peak levels, the building still holds the record for the highest price ever achieved for a residential property in Dubai: Dh14,600 for a two-bedroom apartment that was sold in mid-2014, albeit it was an Armani branded residence,” he added.
Downtown Dubai prices have increased by over 17 percent over the last 12 months, according to Durrani.
Knight Frank said on the occasion of the 12th anniversary of the world’s tallest tower that the Burj Khalifa made Dh317 million in residential sales in 2021.
As end-users sought to be closer to major amenities and investors capitalized on sky-high rental and short-term rental demand, Downtown has seen a resurgence in activity over the last year, according to Andrew Cummings, partner and head of prime residential sales at Knight Frank Middle East.
“Properties with Burj Khalifa views also command a premium on almost any other property. A prime example was the record-breaking sale of a Jumeirah Bay villa for Dh 121 million in 2021. This price was in part achieved due to the super-prime location that enabled the buyer to have views of the Burj from the majority of the property.”
ValuStrat Price Index, a real estate consultancy, reported in December that villas and apartments in the emirate’s prime locations like Palm Jumeirah, Arabian Ranches, Jumeirah Beach Residences, The Lakes, and Emirates Hills registered double-digit price appreciation and transaction growth in November.
Another study by Zoom Property Insights said that prime areas in Dubai are in high demand due to their strategic locations, modern infrastructure, and affordable prices.
Faisal Durrani noted that buyers continue to zero in on the city’s most exclusive neighborhoods, many of whom are new entrants to the market. “These are ultra-high-net-worth individuals drawn to Dubai by the fact that the emirate is now one of, if not the safest city in the world given the excellent governance that has so effectively contained the spread of Covid-19.”
Faisal Durrani noted that buyers continue to zero in on the city’s most exclusive neighborhoods, many of whom are new entrants to the market. “These are ultra-high-net-worth individuals drawn to Dubai by the fact that the emirate is now one of, if not the safest city in the world given the excellent governance that has so effectively contained the spread of Covid-19.”
He added that due to the strong demand for ultra-luxury homes, some developers are launching projects at record prices. “Despite the perennial risk of oversupply, Dubai remains ironically short of uber-luxury homes.”
