(Bloomberg) -- The world's tallest building notched up one of the highest price increases in Dubai's luxury residential developments last year as the market rebounded from a downturn.
Prices at the Burj Khalifa climbed 23% compared with a 8% increase for the rest of Dubai, according to property consultant Knight Frank LLP.
“The theme for 2021 has been the exponential rebounding of Dubai's luxury residential market,” Faisal Durrani, head of Middle East research at Knight Frank, wrote in a report. “At almost 2,100 dirhams per square foot, the Burj Khalifa falls squarely into this category.”
Business activity in Dubai rebounded sharply last year alongside a jump in tourism, helped by the Expo 2020 exhibition -- one of the biggest in-person events since the coronavirus pandemic started. The city has remained relatively open during the pandemic, and buying real estate is also one of the fastest ways for foreigners to get a residency permit.
The luxury end of the market had been a haven for wealthy Europeans escaping lockdowns and for others drawn by the ease of getting vaccinated. HSBC Holdings Plc last year forecast that a growing demand for larger homes during the pandemic would further boost Dubai's property market, echoing analysts at Morgan Stanley who expected the rally to last for “several years.”
Knight Frank said property buyers continue to zero in on the city's exclusive neighborhoods with many 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.”
Knight Frank also said:
- Downtown Dubai, where the Burj Khalifa is located, has seen average prices increases by over 17% over the last 12 months
- Points to factors such as year-round sunshine, safety and cosmopolitan lifestyle contributing to the city's attractiveness
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