Residential values in the world’s tallest building – The Burj Khalifa, have climbed 23%, according to analysis carried out by global property consultant Knight Frank to mark the 12^th anniversary of Dubai’s iconic global landmark.

Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, explained: “The theme for 2021 has been the exponential rebounding of Dubai’s luxury residential market. At almost AED 2,100 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.”

“Downtown Dubai too has seen average prices increases by over 17% over the last 12 months. Buyers continue to zero in on the city’s most exclusive neighbourhoods, many of whom are new entrants to the market. 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. And this insatiable appetite for ultra-luxury homes is tempting some developers to bring homes to the market at record prices, such as Alpago’s Palm Flower project, priced at AED 10,000 per square foot. Despite the perennial risk of oversupply, Dubai remains ironically short of uber-luxury homes.”

Knight Frank also points to softer factors such as year-round sunshine, safety and unrivalled cosmopolitan lifestyle, all of which are contributing to the city’s attractiveness amongst the world’s wealthy.

“While average prices in the Burj Khalifa, like the rest of Dubai, remain some 30% below 2014 peak levels, at the building still holds the record for the highest price ever achieved for a residential property in Dubai: AED 14,600 for a two-bedroom apartment that was sold in mid-2014, albeit it was an Armani branded residence”, Durrani said.

Andrew Cummings, Partner – Head of Prime Residential Sales at Knight Frank Middle East, added: “Burj Khalifa remains the iconic landmark of Dubai. Downtown has seen a resurgence in activity over the last year with demand for apartments soaring as end users sought to be closer to major amenities and investors capitalised on sky-high rental and short-term rental demand. 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 AED 121 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.