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Burj Khalifa dominates realty deals

Global icon Burj Khalifa, the world’s tallest building, dominated Dubai’s biggest residential real estate deals in 2011, occupying three among the eight biggest residential deals for the year, besides occupying the top two slots.

The largest residential real estate transaction in Dubai last year was registered in Burj Khalifa with the price topping Dh28 million, according to Reidin.com. The 11,355 square foot space was sold for Dh28.15 million, or Dh2,479 per square foot, in October 2011.

The second largest transaction was again in Burj Khalifa, for a Dh7,910 square feet unit which was sold for Dh28 million, Dh3,910 per square feet, in February 2011.

A transaction for the same amount (Dh28 million) was also recorded in January in Emirates Hills, pegging the premium cluster at a joint second in the list of the biggest transactions in 2011.

Fourth and fifth on the list were two transaction for properties in Emirates Hills. One was sold for Dh26.1 million in October while the other was sold for Dh23.75 million in August.

The transactions are based on registration date, said Reidin.com, which is an exclusive partner and primary data source for the information service in the emerging markets.

According to the emirate’s Land Department, its Real Estate Valuation Committee valued 1,971 properties in 2011, clocking in at a value of Dh99 billion — 63 per cent of which were for undeveloped plots of land and 37 per cent for finished buildings.

Mohammad Khodr Al Dah, head of the Real Estate Appraisal Centre, said that the requests for property valuation declined in 2011, and maintained that the agency received up to 3,000 valuation requests per annum in the two years prior to 2011. He added that the decline was a sign of stability in the market.

In January, Dubai Land Department said that 35,297 real estate transactions worth Dh143 billion were registered in 2011, an increase of over 16 per cent over 2010.

The statistics released by the Department revealed that above 60 per cent of the apartment sale transactions were done in cash with 20,426 units, worth Dh27 billion, being registered. Overall, total transactions reached 35,297, worth Dh143 billion.

Earlier this year, Jones Lang LaSalle, a global real estate consultancy, said residential market was close to bottom but a broader recovery in terms of prices and rentals was likely in 2013.

“Residential market is close to bottom while prices are increasing in certain areas. We will see some recovery by end of the year, but the market sector as a whole will recover next year,” Craig Plumb, Head of Research, Jones Lang LaSalle Mena, had said.

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