Dubai: Burj Khalifa apartments sell for more than Dh1 billion in 2023

The fall in the number of homes available for sale says that owners are holding on to their homes for longer, signalling longer-term residency mindset

by

Waheed Abbas

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KT Photo: Shihab
KT Photo: Shihab

Published: Wed 3 Jan 2024, 1:46 PM

Last updated: Wed 3 Jan 2024, 11:38 PM

The total number of deals in Burj Khalifa rose by 22 per cent to 117 during 2023, totalling more than Dh1 billion. The world’s tallest tower outperformed the rest of the city in average price by over 17 per cent last year.

According to data released by real estate consultancy Knight Frank on the 14th anniversary of the world’s tallest building, Burj Khalifa saw the total number of homes available for sale decline by 52 per cent last year, reflecting the growing number of long-term investors and genuine end users.

The tower accounted for 7 per cent of all sales in Downtown, which amounted to Dh14.6 billion last year.

Burj Khalifa was inaugurated on January 4, 2010, coinciding 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. At 828 metres (2,716.5 ft), the 200-plus-storey Burj Khalifa has 160 habitable levels - the most of any building in the world.

Faisal Durrani, partner and head of Middle East research for Mena at Knight Frank, said a 52 per cent fall in the number of homes available for sale in the tower underscores that the owners are clearly deciding to hold on to their homes for longer, with inventory levels falling sharply, signalling a longer-term residency mindset.

“Unsurprisingly, this behaviour has helped to sustain price growth in the tower, with the most expensive home sold this year trading for 140 per cent more than 2022,” he said.

As a result of the extraordinary level of demand for property in Dubai, there has been a 38 per cent increase in average city-wide prices since March 2021. In contrast, prices in the Burj Khalifa have grown by 55.4 per cent over the same period.

Most expensive

Knight Frank revealed that the most expensive residential unit was sold for Dh15 million. The four-bedroom apartment was sold for Dh3,339 per sqft. The highest per square foot cost was Dh4,852 in 2023, 20 per cent more than 2022’s priciest sale of Dh4,044 per square foot.

The highest unit snapped up in Burj Khalifa was on the 105th floor, and was sold for Dh10 million.

“Dubai’s emergence as the hub of a second home and crowning as the world’s busiest $10 million-plus homes market has fuelled a relentless wave of international buyers, many of whom have been targeting the emirate’s most expensive homes in the city’s most desirable neighbourhoods,” said Durrani.

Around 45 branded residential units were sold during 2023 with the most expensive going for Dh33 million, covering 8,822 sqft.

14-year performance

Since opening 14 years ago, the Burj has accounted for Dh9.8 billion of home sales, or 8 per cent of the value of all sales in Downtown since 2010. It has recorded 1,756 transactions over the past 14 years.

Will McKintosh, regional partner and head of residential for Mena at Knight Frank, said Downtown Dubai sits at the heart of the city’s most desirable submarkets and it is the most sought-after location for residential real estate in Dubai by international high-net-worth-individuals.

“With the main city core now encompassing Downtown, Business Bay and the wider DIFC, we are seeing developers move to capitalise on the high level of demand for homes in this area. Branded residential operators are clustering in Business Bay, offering one-of-a-kind homes, under the management of new-to-the-region brands, which is helping to cement Dubai’s status as the city with the highest concentration of branded residential operators,” he said.

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