Owning a dream home in the iconic Burj Khalifa is much more accessible to more people now.
According to Knight Frank, the average price per square foot in the Burj Khalifa was Dh2,301 ($626), a great entry point for investors around the world looking to invest in luxury property.
The Burj Khalifa is not just any skyscraper, it is pushing the boundaries of architecture representing pioneering innovation and illustrates the pride of Dubai.
“Since 2014, prices have softened across the market, as a result Dubai compared to other global cities, offers relative affordability,” said Taimur Khan, Knight Frank’s head of research in the Middle East. “For global investors looking to broaden their property portfolio, Dubai is certainly becoming a consideration given this relative affordability, quality of product and Dubai’s status as a global business hub with great lifestyle and infrastructure.”
Khan said that the Burj Khalifa with its iconic status and price levels make it very attractive for investors who are looking to own a trophy asset in Dubai.
Andrew Cummings, co-founder and managing director of Luxuryproperty.com, said, “As one of the most prestigious addresses in the world, the Burj [Khalifa] now offers tremendous value for the luxury buyer, with average prices at Dh2,300 today. This provides an excellent opportunity for the savvy global investor.” By comparison, a high-end condo in Manhattan costs a little over Dh6,500 per square foot, Cummings pointed out, while Hong Kong’s real estate commands a whopping average of Dh7,582 per square foot.
“There is no better time to move into Dubai’s most iconic tower, enjoying a prime location for an enviable price tag,” he adds.
Between Dh2,155 and Dh3,200
According to the valuation-based ValuStrat Price Index, the Burj Khalifa’s price points in February were between Dh2,155 and Dh3,200 per square foot. The net yields ranged from 3.6 per cent to 5.2 per cent, said Haider Tuaima, head of real estate research at ValuStrat.
“You wouldn’t get this kind of price levels for such a prime building anywhere in the world,” said Rajiv Ghanekar, senior real estate agent at Keller Williams. “Prices start from this point, but then of course it changes as it depends on the floor level, the view and layout.”
The gap between the standard residential properties in Downtown Dubai and Burj Khalifa is also narrower, with the Burj Khalifa today trading at just around 15-20 per cent premium, Ghanekar said.
“Surprisingly, the Burj Kalifa is not the most expensive property in Downtown Dubai and is surpassed by serviced apartments in The Address Hotels and some residential projects, which offer full views of Burj and Dubai Fountain, such as Old Town Island, The Residences and the ones currently under construction, namely the IL Primo and Opera Grand,” Ghanekar added.
A recent Knight Frank Wealth Report said that $1 million (Dh3.67 million) would now get you a 1,430-sq-ft home in Dubai. The same amount will only fetch 160 square feet of residential property in Monaco, the priciest residential market in the world, all of 220 square feet in some Hong Kong skyscraper and 310 square feet in New York. In Dubai, buyers will find they can get a few more square feet for their buck than what they would have got if they had bought in mid-2014, when prices were at their peak.