As Dubai’s Burj Khalifa celebrated turning 13, its residential units were said to be enjoying a 16% increase in sales. Property specialist Knight Frank said 94 apartments were sold in the tower in 2022, valued at US $130mn, accounting for 3% of all home sales in Dubai’s Downtown district.
The most expensive sold for $1,089 per sqft, which is said to be well above Dubai’s average of $899 per sqft for prime properties in 2022.
Premium neighbourhoods like Downtown have seen the strongest price growth, Knight Frank said, with Downtown seeing a 16.7% increase, Palm Jumeirah 17.3% and Dubai Hills 19% in 2022.
In August 2022, Emaar bought out Dubai Holding’s stake in Dubai Creek Harbour for $2.04bn.
Faisal Durrani, Partner, Head of Middle East Research, Knight Frank, said Burj Khalifa had accounted for $2.15bn worth of home sales since its opening, which is 7% of all sales value in Downtown and 0.25% of sales in Dubai since 2010.
Downtown prices are said to have increased by 27.6% since the onset of the pandemic, with it becoming the second-best performing market in Dubai behind the Palm Jumeirah, where prices have increased by 36.6%.
Durani added that with yields standing at around 6%, Dubai has seen “the overwhelming majority” of buyers in this property cycle buying second or holiday homes, rather than making speculative purchases.
In late November 2022, Sobha Realty unveiled a new interconnected tower development in Dubai.
Prime residential values in Dubai including Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, have seen record growth during 2022, albeit from a low base, Knight Frank says.
Knight Frank’s 2023 global prime residential markets forecast positions Dubai in first place at 13.5%, on the back of an estimated 50% rise in prime residential prices in 2022.
In early December 2022, DAMAC launched Cavalli Couture at Safa Park in Dubai.