The world’s tallest building recorded a decline in residential transactions during 2024 as Burj Khalifa property owners held onto their prized assets, according to data from Knight Frank.
The Burj Khalifa, which marks its 15th anniversary this month, recorded 116 transactions in 2024, comprising 98 non-branded residential units and 18 branded residences. This marks a decline from 2023, when the building saw 117 transactions, according to Knight Frank’s data.
Total home sales value in the iconic building reached AED 467.1 million in 2024, representing a 5.7 per cent decrease from AED 495.2 million in 2023. Knight Frank attributes the lower transaction volume to a 27 per cent drop in available inventory compared to the previous year.
“The lack of stock for purchase is impacting the headline aggregate values – with fewer homes to purchase, the total transactional volume figure will naturally be lower,” a Knight Frank spokesperson told Arabian Business in response to questions about the apparent contradiction between falling sales volumes and rising prices.
The property consultancy noted that the reduction in available units reflects a broader trend across Dubai’s luxury property market, driven by surging investment demand. “In the 12-months to the end of September 2024, there was a 30 per cent decline in homes available to purchase across Dubai, while in the $10 million+ bracket, the fall has been more acute at 65 per cent,” the firm said.
“The shortage of homes has clearly contributed to the growth in house prices across the city and is spurring developers to rush projects to market,” Knight Frank added.
The average price per square foot in the Burj Khalifa stood at AED 3,000 at year-end 2024, representing a 12.9 per cent increase from 2023. This compares to Dubai’s overall residential price growth of 19.1 per cent during the same period, according to Knight Frank’s analysis.
“The Burj Khalifa’s 15-year reign as the world’s tallest building comes at a time when Dubai’s residential market is experiencing record demand and growth,” Faisal Durrani, Partner – Head of Research MENA at Knight Frank, said in a statement last week. “The shortage of inventory is helping to sustain upward pressure on values in the tower, mirroring the trend being observed in both Dubai’s prime and $10 million+ markets.”
The most expensive transaction in the building during 2024 was a branded five-bedroom residence that sold for AED 44 million, achieving AED 4,987 per square foot.
As Dubai’s total residential market has expanded dramatically, particularly in recent years with the influx of international investors and end-users, historical data reviewed by Arabian Business shows the evolution of Burj Khalifa’s market share. While the tower’s contribution peaked at 5.55 per cent in 2011, shortly after completion, its recent share of 0.11 per cent in 2024 reflects the exponential growth of Dubai’s wider luxury property sector rather than any decline in the building’s appeal.
“Being ‘the centre of now,’ combined with the tower’s iconic status as the world’s tallest building for the last 15 years and being located in the heart of Downtown Dubai, which embodies Dubai’s ambition and position on the world stage, all contribute to the allure of home ownership in the tower,” a Knight Frank spokesperson said.
The Burj Khalifa remains Dubai’s highest-grossing single residential building, having generated AED 8.8 billion in total home sales since its 2010 inauguration, according to Knight Frank. This figure puts it 43 per cent ahead of the second-placed Atlantis The Royal at AED 6.2 billion.
“The Burj Khalifa is more than a landmark; it is a symbol of Dubai’s ambition and success in creating a world-class city,” Durrani said. “The tower’s contribution to Dubai’s luxury real estate sector mirrors the city’s extraordinary growth. Dubai has recorded AED 1.77 trillion in total residential sales since 2010, with the Burj Khalifa accounting for 0.5 per cent of this total.”
“Every 200th dirham spent on residential properties in Dubai over the last 15 years has gone towards owning a piece of the world’s tallest building,” he added, highlighting the building’s sustained impact on Dubai’s property market despite the current supply constraints.
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