Dubai’s Burj Khalifa has seen around $2.7bn in home sales since it first opened 14 years ago.
The world’s tallest building represents around 8 per cent of all home sales in the entire Downtown Dubai area and continues to be a major attraction for investors and homebuyers alike.
The total number of homes available for sale in Dubai’s Burj Khalifa declined by 52 per cent during 2023, reflecting the growing number of long-term investors and genuine end users, according to analysis carried out by global property consultant Knight Frank to mark the 14th anniversary of the world’s tallest building.
Burj Khalifa in Dubai
Despite the fall in the number of homes available for sale, the total number of deals in the tower during 2023 rose by 22 per cent to 117 sales.
Knight Frank says the world’s tallest building continues to enjoy robust demand, mirroring the rest of Dubai.
Indeed, with 117 apartment and branded residence sales in 2023, totalling over AED1.06bn ($288.7m), the Burj Khalifa accounted for 7 per cent of all sales in Downtown, which amounted to AED14.6bn ($4bn).
Faisal Durrani, Partner and Head of Middle East Research at Knight Frank MENA, said: “Dubai’s emergence as a second homes hub and crowning as the world’s busiest $10m-plus homes market has fuelled a relentless wave of international buyers, many of whom have been targeting the emirate’s most expensive homes in the city’s most desirable neighbourhoods.
“This extraordinary level of demand has been the catalyst behind the 38 per cent increase in average city-wide prices since March 2021.
“The Burj Khalifa has outperformed the rest of the city, with prices growing by 55.4 per cent over the same period.
“Dubai’s property market is very much in an emergent phase and identifying signs of maturity can be challenging.
“That said, the 52 per cent fall in the number of homes available for sale in the tower underscores Dubai’s repositioning as a hub for second home buyers and genuine end users.
“Owners are clearly deciding to hold on to their homes for longer, with inventory levels falling sharply, signalling the longer-term residency mindset now bedding in.
“Unsurprisingly, this behaviour has helped to sustain price growth in the tower, with the most expensive home sold this year trading for 140 per cent more than 2022.”
Knight Frank’s analysis has shown that the most expensive apartment sold this year at the Burj Khalifa was priced at AED4,852 ($1,321) per square foot, 20 per cent more than 2022’s priciest sale of AED4,044 ($1,101) per square foot.
The magnetic attraction of the world’s tallest building to potential buyers is best reflected in the fact that since opening 14 years ago, the tower has accounted for AED9.8bn ($2.668bn) of home sales, or 8 per cent of the value of all sales in Downtown since 2010.
Away from the Burj Khalifa, prime residential values in Dubai, which encompass the neighbourhoods of the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, have experienced record growth during 2023, albeit this has been from a low base, Knight Frank says.
Furthermore, Knight Frank’s 2024 global prime residential markets forecast positions Dubai in third place at 5 per cent.
This comes hot on the heels of an estimated 16 per cent rise in prime residential prices in 2023.
Despite this, prime prices stand at approximately AED3,740 ($1,018) per square foot, making Dubai one of the world’s most “affordable” luxury homes markets.
While Downtown Dubai is not classed as prime neighbourhood by Knight Frank, the submarket registered four home sales above the exclusive $10m+ mark, two of which were in Emaar’s The Address Residence Sky Views.
In reference to the enduring appeal of Downtown Dubai, Will McKintosh, Regional Partner – Head of Residential, MENA, said: “Downtown Dubai sits at the heart of the city’s most desirable submarkets and our research shows that it is in fact the most sought-after location for residential real estate in Dubai by international high-net-worth-individuals.
“With the main city-core now encompassing Downtown, Business Bay and the wider-DIFC, we are seeing developers move to capitalise on the high level of demand for homes in this area.
“Branded residential operators are clustering in Business Bay, offering one-of-a-kind homes, under the management of new-to-the-region brands, which is helping to cement Dubai’s status as the city with the highest concentration of branded residential operators.
“Pockets of Business Bay, stretching from Marasi Drive to Safa Park, are becoming a particular hotspot.
“The DIFC too, with its recently launched DIFC Living project, is experiencing record levels of demand. Indeed, the 164 homes launched at DIFC Living sold-out in a matter of minutes.”
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