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19 March 2024

Dubai's Burj Khalifa remains a big draw for investors

Real estate agents say there has been a substantial increase in number of senior management level employees buying apartments. [Image via Shutterstock]

Published
By Parag Deulgaonkar

The number of investors buying into Burj Khalifa, the world’s tallest residential tower, through home loans has doubled in the first nine months of 2014 compared to the same period last year, reveals data shared by Reidin.com with ‘Emirates24|7’.

The number of mortgage transactions for the super skyscraper in Downtown Dubai totalled 61 hitting Dh338 million compared to 32 transactions, worth Dh174 million, in 2013.

The number of cash transactions have risen by 18 per cent to 72, worth Dh513 million, in the first nine months of 2014 compared to 61, worth Dh463 million, during the same period last year.

In November, Burj Khalifa registered the biggest property deal in Dubai in the third quarter of 2014, as Downtown Dubai  witnessed five of the top 10 deals.

This website had revealed that an apartment in Burj Khalifa sold for Dh28 million, topping the list of 10 costliest apartment deals for the third quarter 2014.

Read: Dubai's Burj Khalifa tops costliest apartment deal in Q3

In 2008, apartments in Burj Khalifa were selling for over Dh10,000 per square feet (psf), but prices fell to a low of Dh2,400 psf in 2009-10 following the global economic crisis.

According to Reidin.com data, the average selling price for registered transactions with Dubai Land Department stand at Dh3650 per square feet in the first nine months of 2014 compared to Dh3,500 per square feet during the same period last year. The highest price paid this year was Dh5,285 per square feet.

Real estate agents say there has been a substantial increase in number of senior management level employees buying apartments in Burj Khalifa.

“We are witnessing an increase in demand from people of senior management level… these people are taking loans and using their housing allowances to pay their equated monthly installments. They are living in it as a status symbol, rubbing shoulders with the rich and famous,” a real estate agent with a top brokerage firm told this website.

The 2,717-feet (828-metre) Burj Khalifa has 900 studio, one-, two-, three- and four-bedroom apartments, while there are 144 private Armani Residences. It currently houses the higher observation deck in the world (148th floor, 555 meters from the ground).

Earlier this year, Emaar Chairman Mohamed Alabbar told this website that the company is not going out replicate its successful Downtown Dubai model anywhere in the emirate, ruling out plans to build a tower higher than Burj Khalifa.

Emaar won't build tower taller than Burj Khalifa: Chairman