We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 21 Dec 2014 12:01 PM

Font Size

- Aa +

Total value of Burj Khalifa mortgages soars 95%

Average home loan on properties in the world's tallest building in first 9 mths was $1.5m.

Total value of Burj Khalifa mortgages soars 95%

The value and volume of new mortgages taken out on properties in Burj Khalifa, the world’s tallest residential tower, rose by nearly 100 percent during the first nine months of 2014, according to data from Reidin.com and published by the Emirates24|7.

According to the data, the number of buyers taking out mortgages during the period rose 90 percent to 61 in the first nine months of 2014, while the total value of home loans rose 95 percent to AED338 million ($92 million), up from AED174 million spent by investors in the same period in 2013. The figures put the average mortgage on Burj Khalifa properties at AED5.54 million.

The number of cash transactions has also risen over the same period with 72 transactions worth AED513 million, a rise of 18 percent year-on-year.

In November 2014, Downtown Dubai witnessed five of the top 10 property deals in the third quarter of 2014, with the sale of a Burj Khalifa’s apartment worth AED28 million topping the list of 10 costliest apartment deals, the report added.

“We are witnessing an increase in demand from people of senior management level," a real estate agent was quoted as saying. "These people are taking loans and using their housing allowances to pay their equated monthly instalments. They are living in it as a status symbol, rubbing shoulders with the rich and famous,” he said.

The average selling price for registered transactions with Dubai Land Department per square feet in Q3 2014 was AED3,650, which is a slight increase from AED3,500 Dhs per sq ft in the same period last year.

The prices per sq ft for apartments in Burj Khalifa have been fluctuating significantly from AED10,000 in 2008 to AED2,400 per sq ft in 2009-10 following the global economic crisis. The highest price paid this year was AED5,285 per square feet.

Arabian Business: why we're going behind a paywall

For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.