posted on 26/06/2013: 721 views
Prices of residential apartments in the iconic Burj Khalifa, the world's tallest tower, are on the rise, having registered a 32 per cent increase in the first five months of 2013 compared to the same period last year.
Data shared exclusively by Reidin.com with Emirates 24|7 reveals average sale prices were at Dh3,362 per square foot compared to Dh2,550 per square foot (psf). Prices had fallen to a low of Dh2,200 psf by end of 2011, but gained traction from mid last year as the UAE economy and Dubai property market rebounded.
Although majority of the purchases were still made in cash as previous years, the number of mortgage transactions more than doubled this year to date.
In fact, of the total 37 transactions, registered with the Dubai Land Department, in the first five months of 2013,19 were mortgage sales. A total of 29 transactions were done from January to May 2012 with only nine being mortgage transactions, Reidin.com data reveals.
Yash Shah, Sales Manager, SPF Realty, says: "Overall, prices in Dubai have gone up. Prime areas such as Downtown, Palm Jumeirah, Dubai Marina, all of them have seen a sharp property value growth in recent times which is in direct co-relation with the solid demand in Dubai.
"Downtown being the area where the growth is seen the most and hence Burj Khalifa has an increase in its value.”
Asal Abedi, Residential Sales Consultant, Better Homes, states that demand for apartments in Burj Khalifa reflects the current confidence in the property sector, especially at the very top end of the market.
"The obvious reason for the Burj Khalifa's popularity is its iconic nature. The prestige of owning an apartment in the world's tallest tower is obvious and investors from all across the globe are attracted to it.”
So it is good time to buy?
Shah believes prices will continue to increase and by year-end they will be above Dh4,000 psf.
"The current market prices are in the range of Dh3,500 to Dh4,000 psf. But by year-end everything will be available in the tower, starting Dh4,000 onwards.”
Abedi is also confident that prices will continue to go up, but gradually.
"… investors are back in the market and are showing a huge interest to purchase apartments. The World Expo 2020 might be a key deciding factor in prices going up or remaining stable
At the current rate prices can be expected to increase by a further five to 10 per cent by the year end.”
In March, Emirates 24|7 reported that service charges for residential units in Burj Khalifa rose by 27 per cent for 2013.
Owners of residential units have to pay Dh70.02 per square feet compared to Dh55.01 per square feet 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. – Emirates 24|7
|02 October 2014||TDIC sells out phase one of Mamsha al Saadiyat|
|26 September 2014||DAMAC properties launches dedicated real estate initiative for U.A.E. nationals|
|21 September 2014||Union Properties launches Dh1.78bn of new projects|
|20 September 2014||The Palm to get a 100-metre high residential project|
|19 September 2014||Alabbar wins ‘Lifetime Achievement’ honour|