Dubai: Properties in Burj Khalifa are lording it over Dubai’s property market, both literally and figuratively. Apartment values at the world’s tallest high-rise have easily outstripped those at freehold units across the city, with asking rates at or around the Dh4,000 a square foot mark.
According to Cluttons, current prices at Burj Khalifa is averaging Dh3,750 a square foot, while elsewhere in Dubai is at the Dh1,359 a square foot. “In 2013, prices for apartments in the tower have risen by 25 per cent,” said Steve Morgan, head of Cluttons M.E.
Even then, today’s asking rates are still way below the peaks they had touched — a staggering Dh9,000 a square foot in August 2008 and right before the market tanked. It had reached a bottom of Dh2,500 a square foot in February 2009. (These unit values exclude the super-premium Armani apartments in Burj Khalifa.)
“Looking back at market data prior to the downturn, there have been fluctuations in apartment values at the Burj Khalifa each quarter since its launch — they were up 44 per cent in the second quarter of 2008,” said Morgan.
Asking rates for units at the Burj should soar further, according to market analysts. “Even now there are asking rates for Dh4,300 a square foot for those units which are facing the fountain,” said Robin Teh, country manager at Chesterton International. “And these are investors who can hold on until they get the value they demand.”
There is still a steady trickle of Burj Khalifa units being placed in the market from their investor-owners. But many of these are strictly “exploratory” in nature as investors try to gauge the level of demand there is.
The Burj pull is also experienced by apartments at the towers within the Downtown cluster. The Emaar-developed units are commanding asking prices of Dh2,400-2,800 a square foot, according to Chesterton data. Non-Emaar built units would average 15-20 per cent lower on the value scale.