Rent rates at luxury development have tumbled in wake of Dubai’s real estate crash
A Dubai website is advertising stays in a one-bedroom Burj Khalifa apartment for as little as a one night stretch.
The mydubaistay.com site says the signature apartment on the 19th floor of the world’s tallest tower is available from $286 per night, and can sleep up to four people.
When contacted by Arabian Business, an official at mydubaistay.com said that the apartment had only recently been put up for rent, and that it was the only one of its kind on their books. He declined to reveal the identity of the landlord.
Demand for the flat appears to be healthy; it has already been booked for a week over the New Year period. There are no discounts for long stays.
Rates at the luxury development have tumbled in the wake of Dubai’s real estate crash, which saw price declines of more than 50 percent.
In November, it was reported that rental rates at the Burj Khalifa had plummeted by nearly 40 percent and that about 825 of the tower’s 900 apartments remained vacant.
Emaar, the developer behind the world’s tallest tower, claimed 90 percent of the 900 luxury apartments had been sold before the Burj Khalifa’s glittering launch in January.
Laura Adams, manager for residential sales and leasing at Dubai-based real estate broker Better Homes, said that the asking price for flats in the development remained high.
“We still have a healthy stock of apartments available for sale, however, only a few at reasonable market rate,” she told Arabian Business.
“While we have heard of daily rental rates being charged, it is not something offered through Better Homes. We’re unsure how this would feasibly work considering the level of tight security for the movement of Burj Khalifa guests and tenants. “
In addition to its standard apartments, the tower also houses 144 Armani-branded residences, 37 floors of office space and the 160-room Armani Hotel.
In November, Arabian Business reported that room rates at the hotel, which occupies the first six floors of the Burj Khalifa, were trading at 40 percent down from the published rates at launch.
Guests rooms were available for AED2,400 ($653) a night, compared to a rate card price of AED4,000 at the end of April.
The cost of a two bedroom suite, originally priced at AED40,000, had declined to AED24,000, according to the hotel’s reservations desk.