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24 May 2024

Revealed: Which nationalities top buyers in Burj Khalifa for 2013

By Parag Deulgaonkar

Owning an apartment in Burj Khalifa, the world’s tallest tower, isn’t just a status symbol, it’s a good investment option as well.

According to real estate experts and property agents two nationalities believe that more than others – Indians and Iranians.

Prices are up 25 per cent in 2013, with Reidin.com data shared with Emirates 24|7 revealing median transaction prices at Dh3,500 per square foot.

A total of 74 transactions were registered with the Dubai Land Department in 2013 with the total value touching Dh590 million, the data shows.

Cluttons, a global property consultancy, reported earlier that prices of residential apartments were up by 25 per cent last year.

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

Though Fairmont The Palm registered the biggest transaction of 2013, a Dh29.8 million deal in Burj Khalifa was fourth on the list of top 10 biggest deals.

Why are people buying?

Mario Volpi, Managing Director, Prestige Real Estate, says: “The reason people are buying in the Burj Khalifa is down to the prestige of the tower. If you can afford it why would you not want to be part of this iconic structure?

“In the past I believe that the service charges that shot up have put off some buyers, but now with the positive sentiment and all that goes on Downtown, it is attracting a different kind of buyer, perhaps more discerning.”

Emirates 24|7 had revealed in 2012 that Indians own a large number of apartments in the tower.

Although no latest official statistics were available on the nationality of investors, property agents report that Indians and Iranians continue to invest in the tower.

“Indians are the most prolific buyers of the tall tower followed by Iranians,” believes Volpi.

Prominent buyers include Raj Kundra, a London-based NRI businessman, who gifted an apartment to his wife and Bollywood star Shilpa Shetty, local businessman BR Shetty and Singapore-based Spice Group Chairman BK Modi.

Will prices continue to rise?

Volpi says prices will continue to rise as more emphasis is placed on the Downtown area with such new developments such as the Opera House and new towers commence construction.

Owners of residential units pay Dh70.02 per square foot compared to Dh55.01 psf in 2012.

In 2011 and 2010, the charges were Dh55 and Dh52.77 psf, respectively.

Burj Khalifa (2,717-feet) has 900 studio, one-, two-, three- and four-bedroom apartments, while there are 144 private Armani Residences.

The tower offers luxurious recreational and leisure facilities including four swimming pools, an exclusive residents' lounge; health and wellness facilities; At.mosphere, the world's highest fine dining restaurant at level 122 and At the Top, the world's highest observatory deck with an outdoor terrace on level 124.