Burj Khalifa, the world’s tallest building, recorded home sales worth Dh467.1 million ($127.18 million) in 2024 on continued demand for property in Dubai from high net worth individuals.
The total number of sales, however, dropped 5.7 per cent annually, as a result of lower number of homes available for sale in the building on “sustained demand,” from buyers, according to a new report from Knight Frank on Saturday.
Average prices in Burj Khalifa at the end of 2024 stood at Dh3,000 per square foot, which is 78.5 per cent above the citywide average of Dh1,680 per square foot.
A total of 98 non-branded residential units were sold in the tower last year, with an average transaction price of Dh4.8 million per home, the report said.
The highest price per square foot in the non-branded segment was Dh4,391 for a two-bedroom apartment, which sold for Dh9.7 million.
The building built by Emaar Properties also recorded sales of 18 branded residences during the 12 month period, with a five-bedroom unit, sold for Dh44 million at Dh4,987 per square foot.
“Burj Khalifa’s 15-year reign as the world’s tallest building comes at a time when Dubai’s residential market is experiencing record demand and growth,” said Faisal Durrani, partner and head of research, Mena at Knight Frank.
“Indeed, citywide prices ended the year 19.1 per cent up on 2023, with Burj Khalifa not far behind with 12.9 per cent growth, a remarkable achievement given the citywide dearth of properties for sale.”
The UAE property market has been booming in recent years.
The government initiatives such as residency permits for retired and remote workers and the expansion of the 10-year golden visa programme and overall growth in the UAE’s economy due to diversification efforts is also supporting the property market.
Since opening in 2010, Burj Khalifa has accounted for Dh8.8 billion of home sales in Dubai, the highest for any single building in the city, 43 per cent ahead of second placed Atlantis The Royal at Dh6.2 billion, Knight Frank said.
The report also revealed that Burj Khalifa has accounted for 6.2 per cent of the total value of residential sales in Downtown since 2010, which equates to Dh144.2 billion.
With 1,862 units sold to date, 76 per cent of Burj Khalifa's residences are now valued at more than $1 million.
“One of the critical driving forces behind Dubai’s residential property market has been its growing prominence as a global hotspot for high net worth individuals,” Petri Mannila, partner and head of prime residential, Dubai at Knight Frank, said.
“These affluent buyers are not just investing in the city but are actively targeting Dubai’s most luxurious homes for personal use, which has reshaped the dynamics of the market.”
Dubai and Abu Dhabi combined have recorded more than 100 sales of homes valued at over Dh100 million in the past two years, with ultra high net worth individuals buying in prime locations including The Palm Jumeirah, Jumeirah Bay Island, Emirates Hills, Business Bay and Saadiyat Island, according to recent data from property brokers and Abu Dhabi Real Estate Centre.
The most expensive home sold in Dubai was a Dh600 million mansion in Palm Jumeirah in 2022, while Abu Dhabi in March recorded its most expensive apartment sale of Dh137 million for a three-bedroom penthouse at Nobu Residences, built by Aldar Properties in Saadiyat Island.
