Rents in Burj Khalifa drop 40 per cent

Even the rents in Burj Khalifa are wilting under the summer heat. Studio apartments are being offered for between Dh100,000 and Dh110,000 compared to Dh140,000 a month ago, a reduction of almost 40 per cent.

Realtors say it’s too early to say anything about the decline and persuade owners to drop prices.

Laura Adams, Manager - Residential Sales & Leasing, Head Office, Better Homes, says studio apartment with partial sea view is being rented for Dh110,000 per year, one bed with full sea view going for Dh188,000 while two beds with full fountain view being leased for Dh285,000 per year.

“There’s only been one lease so far so it’s too early to persuade owners to drop prices. We have a number of units listed but most of them do not have full access as the snagging has not been completed,” she adds.

Agents say just one apartment has so far been leased - a three-bed - for Dh350,000 per year.

Asked by when can prospective tenants move into the apartments, Adams says: “Immediately, if the floor has been handed over. At present, very few apartments actually have their keys as there were many units that still had final snagging issues.”

Although Better Homes had plans to impose a viewing charge, it has now been ruled out.

“This has been discussed, but we felt this was unnecessary as long as thorough qualification is conducted on the tenants.”

Moreover, the agents are not increasing their commission charges for Burj Khalifa.

“The commission is standard across all units in Dubai; we do not change this for individual apartments. However, landlords will still require the normal deposit of Dh5,000 for unfurnished and Dh10,000 for furnished properties which are refundable upon departure minus any damages,” she adds.

Business 24|7 had reported in June the service charge residential units in Burj Khalifa was set at Dh52.77 per square foot for 2010, while charges for Armani Residences were at Dh78.63 per square feet.