Demand for apartments in Burj Khalifa, the world’s tallest tower in Dubai, is fast rising, reflecting the rise of positive sentiment for the sector at the very top end of the market.
According to information available with Emirates 24|7, there have been 61 Burj Khalifa sales transactions in the first nine months of 2012.
In the third quarter, prices jumped to between Dh2,900 and Dh3,600 per square foot from Dh2,600 to Dh3,200 per square foot in the fourth quarter 2011.
“The current asking prices are between Dh2,900 and Dh3,200 per square foot for sea and Sheikh Zayed Road views, and Dh3,500 to Dh3,600 per square foot for fountain views,” said Parvees Gafur, Chief Executive Officer, PropSquare Real Estate.
One transaction registered with Dubai Land Department pegged the rate at Dh4,600 per square foot.
In 2008, the prices had topped Dh10,000 per square feet, but in 2009-10 apartments were sold for as low as Dh2,400 per square foot.
In 2011, the largest residential real estate transaction in Dubai was registered in Burj Khalifa with the price topping Dh28 million.
Gafur believes prices will continue to go up gradually, but probably not at the same pace where it has gone against the last one year to current market levels.
Downtown, he believes, on a whole has got a boost from recent project launches, and Burj Khalifa is no exception.
“The general trend for quality assets in Downtown and from end users and investors in total has added value.
“Where till earlier this year the buyers were mostly end-users who acquired them as ‘trophy’ assets, today even the investor class is showing interest to purchase.”
On Sunday, the Dubai Land Department said the total value of property transactions touched Dh 83 billion in the first nine months of the year with Burj Khalifa area topping the list of most traded areas with 3305 transactions.
Burj Khalifa, 828 metres high, has 900 studio, one-, two-, three- and four- bedroom apartments, while the Armani Residences has 144 fully furnished private apartments.