Dubai: Are apartment owners at the Burj Khalifa in Dubai better by waiting longer to sell and cash in? It sure seems so based on new data.
The most expensive unit sold last year at the world’s tallest tower fetched Dh4,852 per square foot, which is 20 per cent higher than the 2022 high of Dh4,044 psf. If one goes back to the period from March 2021, Burj Khalifa units have seen average price rises of more than 55 per cent, according to new report from Knight Frank.
Which suggests there could be more price gains to come. This could partly explain why there was a 52 per cent drop in the number of homes available for sale in Burj Khalifa during 2023.
“Owners are clearly deciding to hold on to their homes for longer, with inventory levels falling sharply, signalling the longer-term residency mindset now bedding in,” said Faisal Durrani, Head of research for MENA at the property firm.
“Unsurprisingly, this behaviour has helped to sustain price growth in the (Burj Khalifa) tower, with the most expensive home sold this year trading for 140 per cent more than 2022.”
Pockets of Business Bay, stretching from Marasi Drive to Safa Park, are becoming a particular hotspot. The DIFC too…
– Will McKintosh, Regional Partner – Head of Residential, MENA at Knight Frank
How many did end up ‘sold’ in 2023?
Last year, the Dubai skyscraper had 117 deals, which is up 22 per cent over 2022. That was enough to raise more than Dh1.06 billion, with the Burj Khalifa accounting for 7 per cent of all sales across the Downtown, which amounted to Dh14.6 billion.
Since it opened 14 years ago, Burj Khalifa has has tallied Dh9.8 billion in home sales (8 per cent of the value of all sales in Downtown since 2010).
“Dubai’s emergence as a second homes hub – and as the world’s busiest $10 million plus homes market – has fuelled a relentless wave of international buyers,” said Durrani. “Many of whom have been targeting the emirate’s most expensive homes in the city’s most desirable neighbourhoods.
“This extraordinary level of demand has been the catalyst behind the 38 per cent increase in average city-wide prices since March 2021. The Burj Khalifa has outperformed the rest of the city, with prices growing by 55.4 per cent over the same period.”