Prices of Burj Khalifa apartments rose sharply in 2021, as the UAE’s property market recovers from the coronavirus pandemic on the back of government initiatives and a rapid vaccination programme.
The world’s tallest building recorded a 23 per cent jump in prices last year, compared with an 8 per cent increase for the rest of Dubai, a report by global consultancy Knight Frank said.
“The theme for 2021 has been the exponential rebounding of Dubai’s luxury residential market,” said Faisal Durrani, partner and head of Middle East research at Knight Frank. “At almost Dh2,100 [$571.81] per square foot, the Burj Khalifa falls squarely into this category.”
The UAE property market, which softened due to a three-year oil price slump that began in 2014 due to oversupply concerns and the ensuing pandemic, is on a rebound as people move to larger homes with outdoor amenities amid a surge in remote working and online learning.
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Inside a Burj Khalifa apartment
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In addition, economic support measures and government initiatives – such as residency permits for those who have retired and remote workers in addition to the expansion of the 10-year golden visa programme – have also helped to improve market sentiment.
Prices also jumped by more than 17 per cent in Downtown Dubai, where Burj Khalifa is located, as buyers “continue to zero in on the city’s most exclusive neighbourhoods, many of whom are new entrants to the market”, Mr Durrani said.
“These are ultra-high net-worth individuals drawn to Dubai by the fact that the emirate is now one of, if not the safest city, in the world given the excellent governance that has so effectively contained the spread of Covid-19,” he added.
The emirate's non-oil economy continued to grow in November, with business conditions recording their sharpest improvement in two years, helped by a pick-up in new business and a recovery in international travel linked to Expo 2020 Dubai, according to IHS Markit, which compiles the Dubai Purchasing Managers' Index.
The UAE also administered two doses of a coronavirus vaccine to more than 90 per cent of its population, the National Emergency Crisis and Disaster Management Authority has said.
“Properties with Burj Khalifa views also command a premium on almost any other property,” said Andrew Cummings, partner and head of prime residential sales at Knight Frank Middle East.
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Tallest buildings in the UAE
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“A prime example was the record-breaking sale of a Jumeirah Bay villa for Dh121 million in 2021. This price was in part achieved due to the super prime location that enabled the buyer to have views of the Burj from the majority of the property.”
Total property sales transactions in Dubai surged 88.37 per cent on an annual basis in the first 11 months of 2021, according to the latest data by the Dubai Land Department.
The emirate registered 55,640 sales deals worth Dh135.4 billion from January to November 2021, making it the best year in terms of total sales since 2014, the data show.
Knight Frank also credits softer factors such as year-round sunshine, safety and a cosmopolitan lifestyle for Dubai's attractiveness among the world’s wealthy.
