The Decline in Homes for Sale Indicates a Shift Towards Longer-Term Residency in Burj Khalifa. The reduction in the inventory of available homes suggests a trend where homeowners are opting for longer-term residences, reflecting a mindset focused on extended residency.
In 2023, the total number of transactions in Burj Khalifa witnessed a notable 22 percent increase, reaching 117 deals and surpassing a cumulative value of Dh1 billion. The iconic skyscraper, celebrating its 14th anniversary, outperformed the city’s average price by more than 17 percent.
Data released by real estate consultancy Knight Frank highlighted a significant 52 percent drop in the total number of homes available for sale in Burj Khalifa during the past year. This decline indicates a rising presence of long-term investors and genuine end-users, shaping a shift in the real estate landscape of the world’s tallest building.
Burj Khalifa Contributes to 7% of Downtown Sales, Totaling Dh14.6 Billion in 2023. In the real estate landscape of Downtown, Burj Khalifa played a significant role, accounting for 7 percent of the overall sales, which amounted to an impressive Dh14.6 billion in the past year.
Inaugurated on January 4, 2010, to coincide with the fourth anniversary of the Accession Day of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President of the UAE and Ruler of Dubai, Burj Khalifa stands tall at 828 meters (2,716.5 ft). With over 200 storeys, the iconic skyscraper boasts 160 habitable levels, securing its position as the building with the highest number of habitable levels globally.
Faisal Durrani, Partner, and Head of Middle East Research for Mena at Knight Frank, highlighted a 52 percent decrease in the available homes for sale in the tower, emphasizing that homeowners are increasingly opting for extended residency. The substantial reduction in inventory levels signifies a shift towards a longer-term residency mindset.
Durrani commented, “Unsurprisingly, this behavior has contributed to sustaining price growth in the tower, as evidenced by the most expensive home sold this year, which traded for 140 percent more than in 2022.”
Due to the exceptional surge in property demand in Dubai, average city-wide prices have experienced a notable 38 percent increase since March 2021. In contrast, prices within the Burj Khalifa have outpaced the city average, exhibiting a remarkable growth of 55.4 percent during the same period.
In the realm of opulence, Knight Frank revealed that the pinnacle of residential extravagance was marked by the sale of the most expensive unit for a staggering Dh15 million. This four-bedroom apartment commanded a remarkable Dh3,339 per square foot. Notably, the cost per square foot reached new heights in 2023, registering at Dh4,852, a significant 20 percent increase compared to the priciest sale in 2022, which stood at Dh4,044 per square foot.
The epitome of luxury in Burj Khalifa was achieved on the 105th floor, where a unit exchanged hands for Dh10 million.
Faisal Durrani, Partner, and Head of Middle East Research for Mena at Knight Frank, attributed this surge in high-end real estate transactions to Dubai’s ascension as the hub for second homes and its recognition as the world’s most active market for homes valued at $10 million and above. The city has become a magnet for international buyers, with many setting their sights on acquiring the most luxurious residences in the most coveted neighborhoods.
Over its 14-year tenure since its inauguration, the Burj Khalifa has played a significant role in the real estate landscape, contributing to Dh9.8 billion in home sales. This amounts to 8 percent of the total value of all sales in Downtown since 2010. Impressively, the iconic skyscraper has been involved in 1,756 transactions during this period.
Will McKintosh, Regional Partner and Head of Residential for Mena at Knight Frank emphasized the prime position of Downtown Dubai as the central hub of the city’s most coveted submarkets. It stands out as the premier location for residential real estate in Dubai, particularly among international high-net-worth individuals.
McKintosh highlighted the expansion of the main city core to include Downtown, Business Bay, and the broader Dubai International Financial Centre (DIFC). This strategic move has prompted developers to seize the opportunity and leverage the robust demand for homes in this dynamic area. The clustering of branded residential operators in Business Bay has become a notable trend, with unique homes managed by new-to-the-region brands. This phenomenon is contributing to Dubai’s reputation as the city with the highest concentration of branded residential operators, further enhancing its allure in the global real estate landscape.
Also Read : UAE: Anticipated Drop in 2024 Interest Rates Expected to Drive Increased Adoption of Mortgages Among Property Buyers