Credit By: Property news.ae
The iconic Burj Khalifa in Dubai has witnessed a remarkable surge in real estate transactions, with deals exceeding Dh1 billion in total value in 2023. According to data released by Knight Frank, a leading real estate consultancy, the world’s tallest tower outperformed the rest of the city in average price by over 17%, marking its 14th anniversary with impressive statistics.
Rising Transaction Numbers
Throughout 2023, the total number of deals in Burj Khalifa increased by 22% to 117 transactions, contributing significantly to its total sales exceeding Dh1 billion. This transaction surge showcases this architectural marvel’s enduring appeal and demand for luxury living.
Long-Term Residency Mindset
Knight Frank’s data reveals a notable trend in the decline of available homes for sale in Burj Khalifa, dropping by 52% in 2023. This decline signals a growing number of long-term investors and genuine end users, reflecting a mindset shift towards extended residency. Faisal Durrani, Partner and Head of Middle East Research for Mena at Knight Frank, notes that this trend has contributed to sustaining price growth in the tower.
Sustained Price Growth and Demand
Despite the broader real estate market’s growth, Burj Khalifa has outpaced the city-wide average. While Dubai experienced a 38% increase in average prices since March 2021, Burj Khalifa witnessed a more substantial growth of 55.4% during the same period. The tower’s sustained price growth underscores its status as a sought-after residential destination.
Most Expensive Transactions
The report highlights the most expensive residential unit sold in 2023, a four-bedroom apartment that fetched Dh15 million, translating to Dh3,339 per sqft. The highest per-square-foot cost 2023 reached Dh4,852, marking a 20% increase from 2022. The highest unit sold in Burj Khalifa, located on the 105th floor, was acquired for Dh10 million.
Global Magnet for Luxury Real Estate
Dubai’s emergence as a global hub for luxury real estate and its recognition as the world’s busiest $10 million-plus homes market has attracted international buyers to the city’s most exclusive neighbourhoods. The influx of high-net-worth individuals seeking luxury homes has fueled Burj Khalifa’s impressive real estate performance.
Branded Residences and Market Dynamics
In 2023, approximately 45 branded residential units were sold, with the most expensive unit fetching Dh33 million, covering 8,822 sqft. The strategic clustering of branded residential operators in Business Bay emphasizes the city’s status as having the highest concentration of such operators, adding a unique dimension to Dubai’s real estate landscape.
Since its inauguration 14 years ago, Burj Khalifa has accounted for Dh9.8 billion in home sales, representing 8% of the value of all sales in Downtown since 2010. The tower has witnessed 1,756 transactions over the past 14 years, solidifying its position as an enduring symbol of luxury living in Dubai.
In summary, Burj Khalifa’s exceptional performance in 2023 underscores its resilience and enduring appeal in the luxury real estate market, positioning it as a landmark destination for global investors and residents alike.
Follow ARP Media for more informative blogs.