Why buying an apartment in Burj Khalifa makes great investment sense

Prices of residential apartments in Burj Khalifa, the world’s tallest tower, have risen 25 per cent in 2013, according to Cluttons.

A review of prices over the past four years by the global property consultancy reveals prices of residential units rose by 13.6 per cent since handing over of the units in January 2010.

In 2008, Mohamed Ali Alabbar, Chairman, Emaar Properties, had said that apartments were selling for over Dh10,000 per square feet (psf). But price fell to a low of Dh2,400 psf in 2009-10 following the global economic crisis.

Currently, apartment values stand at Dh3,750 psf, which is a 50 per cent increase on the February 2009 figure, Cluttons said. Values have risen by 87.5 per cent since units were first launched in July 2006.

Average sale prices stood at Dh3,362 psf in the first five months of 2013 compared to Dh2,550 psf compared to the same period last year, data shared exclusively by Reidin.com with Emirates 24|7 had revealed. Read: Dubai's Burj Khalifa 2013 prices up 32%

Capital value in Burj Khalifa rose by 27 per cent in the year to June 2013, Knight Frank, a global property consultancy, had said.

“Prices increased by 40 per cent briefly at the peak of the market but then dropped top below the off plan prices for the following four years until regaining their original value in Q2 2013,” the consultancy said.

Steve Morgan, head of Cluttons Middle East, said: “Looking back at market data prior to the economic downturn, there have been fluctuations in apartment values at the Burj Khalifa each quarter since its launch. They were up a staggering 44 per cent in the second quarter of 2008.

“In 2013, prices for apartments in the tower have risen by 25 per cent, which has been supported in part by continued optimism surrounding Dubai's economic buoyancy and also by on-going growth in investor interest in our city's real estate market.”

Owners of residential units have to pay Dh70.02 per square feet compared to Dh55.01 psf in 2012. In 2011 and 2010, the charges were Dh55 and Dh52.77 psf, respectively. Read: Service charge hiked by up to 37% at world's tallest Burj Khalifa

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

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.

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