Megaprojects: The $3bn Dubai tower set to join the world's tallest residential buildings

More than 20 per cent of properties in Al Habtoor Tower have been sold in a little more than a month

A rendering of Al Habtoor Tower, once it is completed. Photo: Al Habtoor Group

Construction is under way for the Al Habtoor Tower project. Pawan Singh / The National

Omar Kabalan says people are liking the fact that they are only a 15-minute journey from most parts of Dubai, including the airport. Pawan Singh / The National

Al Habtoor Tower is located near Business Bay in Dubai. Photo: Al Habtoor Group

The tower will have views of Dubai's shoreline. Photo: Al Habtoor Group

Once completed, the building will rank as the 11th tallest residential building in the world. Photo: Al Habtoor Group

Al Habtoor Tower is expected to cost about $3 billion. Photo: Al Habtoor Group

Mr Kabalan said buyers have been from a mix of countries but so far a lot of Russians have invested. Photo: Al Habtoor Group

High-rise towers will always hold a certain allure for some, said one property expert. Photo: Al Habtoor Group

Construction has begun on a new $3 billion residential building in Dubai that is tipped to be the emirate’s next world-famous tower.

Al Habtoor Tower, located off the Sheikh Zayed Road, is expected to stand 345 metres tall upon completion.

The National was invited on a site tour of the project, which will be 81 floors high and have more than 1,700 units. It is scheduled to be completed by the third quarter of 2026.

While the project in Al Habtoor City was only announced last month, more than 20 per cent of the properties have already been snapped up.

“You can see from how quickly the properties are selling that there is a need for this kind of building,” said Omar Kabalan of Provident Real Estate, the sales project manager for Al Habtoor Tower.

“People are liking the fact that you’re only a 15-minute journey from most parts of Dubai, including the airport.

“There aren’t many empty plots on the Sheikh Zayed Road to develop so that’s why this building will be all the more popular.”

Once completed, the building will rank as the 11th tallest residential building in the world, according to the Council of Tall Buildings and Urban Habitat.

People who have already bought units at the property come from all over the world, said Mr Kabalan.

“We’re seeing a mix from many countries but so far a lot of Russians have invested,” he said.

“There’s probably a fairly even split between those who are buying to invest and those who want to live in the units themselves.”

Glittering skyscrapers are a common sight in Dubai’s skyline, with the emirate being home to the world’s tallest building, Burj Khalifa, which stands at 828 metres.

Two of the top five tallest residential buildings in the world are also located in the emirate.

These include the 413.7-metre Princess Tower and the 392.8-metre 23 Marina, both in Dubai Marina.

Neighbouring Abu Dhabi is also home to one of the world’s tallest residential buildings – the Burj Mohamed bin Rashid, which stands at 381 metres tall.

Dubai can also lay claim to having seven of the top 10 tallest hotels in the world, including the Gevora Hotel, JW Marriott Marquis Hotel, Rose Rayhaan by Rotana, Burj Al Arab, Jumeirah Emirates Towers, Address Beach Resort and The Tower Plaza.

News of the next addition to Dubai’s catalogue of megastructures has been welcomed by real estate experts in the emirate.

Premium real estate is in demand

“The launch of Al Habtoor Tower by one of the UAE's leading conglomerates gives further evidence of the demand for such premium landmark real estate in Dubai,” said Fintan Flannelly, head of developer sales at Allsopp & Allsopp.

“As Dubai's population grows, so does the demand.

“The location of Al Habtoor Tower is in close proximity to Dubai Mall, Burj Khalifa, DIFC, and is adjacent to Dubai Canal, which is noted as one of Dubai’s hotspots.”

The project was a sign of how buoyant the Dubai real estate market is right now, added another expert.

“The demand for the next best investment is very prevalent based on how quickly new launches are sold out – quite literally in minutes in some cases,” said Rennie Sanger, senior off plan and investment consultant with real estate firm Haus & Haus.

The tower is also a reminder that Dubai will always be synonymous with notable buildings, added another expert.

“Iconic towers will always hold a certain allure for some individuals,” said Matthew Gregory, branch director at Betterhomes.

“The allure of residing in a prestigious address is undeniable, and I am confident that the new Al Habtoor Tower will capitalise on this appeal.”

High-rise living still appeals

In recent years, there has been a trend of Dubai residents opting for town houses and villas in the suburbs, as the city’s population centre expands and space becomes premium.

Projects such as Al Habtoor Tower show there is still an appetite for the high-rise living that many associate with Dubai, added Mr Gregory.

“Not everyone desires to endure a 45-minute commute to their workplace,” he said.

“For some, residing in the city centre, often in a high-rise tower, provides a superior quality of life compared to being stuck in traffic on Hessa Street for 30 minutes or longer. High-rise living serves as a compromise to mitigate against lengthy commutes.

“Who wouldn't be enticed by the idea of residing in a modern tower and conveniently strolling across the canal to reach their office in just 10 minutes?”