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29 March 2024

Dubai's Torch tower fire cools demand; rents fall by up to 9%

An indicative 81 apartments out of 676 units are potentially unfit for habitation pending official confirmation by the Dubai authorities. (AP)

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By Parag Deulgaonkar

Asking rents in The Torch in Dubai Marina have fallen between seven and nine per cent in less than a month after a fire ripped through one of the world’s tallest residential towers on February 21, reveals an analysis of listing done by Emirates 24|7.

Currently, rentals for one-bed apartments have come down to Dh100,000 to Dh120,000 per annum (pa) from Dh110,000 to Dh120,000 pa in February. As for two-bed units, rates are now between Dh130,000 and Dh150,000 pa compared to Dh140,000-Dh150,000 pa.



Ozan Demir, Data & Research Manager – UAE, Reidin, however, told Emirates 24|7 that after the fire incident they had not observed any significant change on the rental values in the tower.

“The building’s rent price has dropped around 5 per cent since the second half of 2014 in line with location of the building but rentals are on the same levels after fire incident so far. We might see the price change in the following months more clearly.”

Mario Volpi, Managing Director, Ocean View Real Estate, says: “It is possibly too soon to tell but actually prior and post the fire, we have not had any properties in the Torch go on the market at all.

“In terms of enquiries we do not have anyone who has specifically asked for available properties in the Torch. What we do have however, are two separate renters who have expressed a will to leave their rented properties in the Torch in favour of lower rise buildings such as the Greens.”

Asked if the demand from renters for high-rise towers had come down post the fire incident, Demir says though demand for The Torch may go down temporarily but in general high-rises will continue to have demand.

“The fire incident drives people’s attention on safety and security features of the buildings. Sprinkler system was the key element in containing the fire and we believe renters will check this feature before leasing units.”

But Volpi opines that demand for high-rises has definitely dwindled and, in fact, renters have been requesting properties on lower floors (no higher than 10th floor) and buildings that are not high rise.

Over 100 apartments continue to remain inaccessible with the cause of the fire still under investigation.

The fire broke out in the 87-storey tower at 1.49am, with Dubai Civil Defence teams arriving on the scene in nine minutes. There were no casualties

Dubai is home to the world’s top four tallest residential towers: Princess Tower (414 metres) is the tallest residential tower in the world, followed by 23 Marina (395-metres), Elite Residence (381 metres) and The Torch (348 metres).

Another tower, The Pentominium, planned to reach a height of 516 metres, is currently on hold and if completed would take the top rank.

Dubai Marina, 'tallest block in the world', as christened by EC Harris, a global built asset consultancy, houses 14 out of the 20 tallest buildings in the emirate.

The district also houses 310-metre-high Cayan Tower, the world's tallest tower featuring a 90-degree twist and Marina 101 (432 metres), which is set for completion this year with topping out happening by March 2015.

Dubai currently has 917 high-rises and 465 skyscrapers, Emporis, which collates data on building worldwide, data reveals.