DUBAI – Studio flats can be rented for 140,000 dirhams ($38,000) a year at Burj Khalifa, the world’s tallest building inaugurated in Dubai earlier this year, UAE daily Gulf News reported on Tuesday.
Prices range between 180,000 to 260,000 dirhams for one-bed flats and start from 300,000 dirhams for two-bed apartments, the newspaper reported, citing real estate agents and rental ads.
A luxury studio flat in Manhattan can cost about $48,000 a year. In contrast, a studio apartment in Dubai’s International City can be rented for about $7,000 a year.
“The asking prices are a first test of how the market responds,” Elysian Real Estate property agent Joe Le Beau told the newspaper. “We are still in the early steps, and this is a very exclusive piece of real estate.”
Networth Real Estate property agent Daniel told the newspaper his company was offering apartments for sale in the 828-meter tower for sales at 3,250 dirhams a square foot, depending on the size of the unit.
“But not many owners are willing to sell,” he said. “At least not below 4,000 (dirhams) per square foot.”
Asked if there could be an oversupply as more Burj Khalifa units hit the market, Daniel said that “this tower is the only one of its kind, and the units are a special offer”.
The newspaper reported that prospective tenants would have a tough time negotiating rents in the tower as flat owners pay 52.77 dirhams per square foot in annual service charge for hot and cold water and community service for their apartments.
Hence, a 1,000-square-foot one-bed flat will incur more than 50,000 dirhams in charges a year, the newspaper reported.