By Shane McGinley
Rather than live in iconic tower, owners prefer to have it as a backdrop from their window, says expert
Despite its record-breaking height and its unit prices rising by nearly a third, Dubai’s Burj Khalifa has been eclipsed as the city’s most sought after and most expensive residence. Buyers are opting to reside in an apartment with a view of the iconic tower, rather than live in it, a real estate expert said.
Recent data from real estate agents and the Dubai Land Department (DLD) showed prices in the world’s tallest tower had risen 32 percent in the first five months of this year, to an average of AED3,362 ($915) per square foot (sq ft).
"Burj Khalifa prices have seen a steady increase in the past year,” said Mujtaba Virani, a residential consultant at the Downtown Dubai team at the Better Homes real estate agency.
“However, this increase isn’t as steep as many of the other buildings in the Downtown area. It may come as a surprise but, in spite of its iconic stature, the Burj Khalifa is by no means the most expensive building in the area,” Virani revealed.
According to Better Homes’ data, sales prices at rival tower The Address Downtown have seen greater increases than the Burj Khalifa.
“[The Address Downtown] remains the most sought after building in Downtown. Prices for a two bedroom with a view of the Burj Khalifa and the fountains is available from AED4,500 per sqft... A two bedroom 1,800 sqft would sell for AED9.5 million plus,” Virani said.
Similarly, units in The Residences were also proving popular, with apartments will a full view over the Dubai Fountains proving to be most in demand.
Despite the Burj Khalifa being home to the world’s first Armani-branded hotel and spa and At.mopshere, the world’s tallest restaurant and bar, Virani said the tower had now become a popular backdrop rather and a must-have address.
“Recently I asked a client of mine, whose budget would allow him to buy either in the Burj Khalifa or in The Address, why he had opted for The Address. He replied: ‘It is simple, I can't see the Burj from the Burj’,” Virani said.
Interesting to see first-half 2008 price increase percentages entering the arena again. Dangerously high, or is that just my imagination running away with me based on a fleetingly bad experience.
The repetition of history or does everything look swimmingly good from now on? - as a certain well known developer is already busy rescheduling just over $2 billion of debt due in 2015.