Sky-high Prices Soar In Dubai

Standing half-a-mile high, the Burj Khalifa has been the tallest structure building in the world since its topping out in 2009.

And twelve years on from the grand opening, the landmark is still outperforming the rest of the market, with prices rising by nearly a quarter last year compared to the Dubai average of 8%.

Dh317m (￡63.7m) worth of apartments were sold in the building last year, although the average price per square foot was still nearly a third below the peak level recorded in 2014.

The theme for 2021 has been the exponential rebounding of Dubai’s luxury residential market. At almost Dh2,100 per square foot, the Burj Khalifa falls squarely into this category. Indeed, prices in the world’s tallest building rose by 23% last year, compared to a more modest 8% for the rest of Dubai.

While average prices in the Burj Khalifa, like the rest of Dubai, remain some 30% below 2014 peak levels, the building still holds the record for the highest price ever achieved for a residential property in Dubai: Dh14,600 for a two-bedroom apartment that was sold in mid-2014, albeit it was an Armani branded residence.

Dubai’s other prime property hotspots, including Palm Jumeirah, Arabian Ranches, Jumeirah Beach Residences, The Lakes, and Emirates Hill, also saw double-digit price growth in 2021.

Properties with Burj Khalifa views also command a premium on almost any other property. 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.

Despite the perennial risk of oversupply, Dubai remains ironically short of uber-luxury homes. The Dubai Land Department recorded a total of 84,722 transactions across the emirate last year, with a combined value of AED 300bn (c.￡60bn). The figures were up by 65% and 71% respectively, compared to 2020.