Most owners holding on to Burj Khalifa homes longer: Report

Dubai, UAE — The total number of homes available for sale in Dubai’s Burj Khalifa declined by 52 percent 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.
Despite the fall in the number of homes available for sale, the total number of deals in the tower during 2023 rose by 22 percent 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, totaling over AED 1.06 billion, the Burj Khalifa accounted for 7 percent of all sales in Downtown, which amounted to AED 14.6 billion.
Faisal Durrani, Partner – Head of Middle East Research, MENA, explained: “Dubai’s emergence as a second homes hub and crowning as the world’s busiest US$ 10 million plus homes market has fueled a relentless wave of international buyers, many of whom have been targeting the emirate’s most expensive homes in the city’s most desirable neighborhoods.”
“This extraordinary level of demand has been the catalyst behind the 38 percent 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 percent over the same period,” he said.
He said Burj Khalifa homeowners are clearly deciding to hold on to their homes for longer, with inventory levels falling sharply, signaling the longer-term residency mindset now bedding in.
“Unsurprisingly, this behavior has helped to sustain price growth in the tower, with the most expensive home sold this year trading for 140 percent more than 2022,” he said.
Knight Frank’s analysis has shown that the most expensive apartment sold this year at the Burj Khalifa was priced at AED 4,852 per square foot, 20 percent more than 2022’s priciest sale of AED 4,044 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 AED 9.8 billion of home sales, or 8 percent of the value of all sales in Downtown since 2010.
Away from the Burj Khalifa, prime residential values in Dubai, which encompass the neighborhoods 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 percent. This comes hot on the heels of an estimated 16 percent rise in prime residential prices in 2023.
Despite this, prime prices stand at approximately AED 3,740 per square foot, or around $1,020 per square foot, making Dubai one of the world’s most ‘affordable’ luxury homes markets. While Downtown Dubai is not classed as prime neighborhood by Knight Frank, the submarket registered four home sales above the exclusive US$ 10 million+ mark, two of which were in Emaar’s The Address Residence Sky Views.