Thursday, July 26, 2007

Prices of commercial and residential space in Burj Dubai to soar high

The prices of residential and commercial space in the world's tallest tower, Burj Dubai, are touching new heights, with current rates estimated between Dh.4000 to Dh.8000.

The Chief Executive of Coldwell Banker, Hisham El Far said "The residential space in the tower is being sold for Dh.4000 to Dh.6000 per square foot, while the commercial space is being sold for Dh.5000 to Dh.8000 per square foot. The prices have gone up by nearly 25 percent during the last few months, and are sure to increase further, with Burj reaching greater heights."

The company has entered into two deals worth Dh.45 million, and is being approached by many investors looking to invest in Burj Dubai.

El Far mentioned that it is difficult to disclose an average rate, as the prices are yet to be finalized and they tend to increase with the increase in the number of floors.

However, El Far is of the opinion that leasing the property would prove beneficial to the developer, than selling it, as there are chances of better returns from the property over the years.

Meanwhile, Emaar Properties, in their statement, said that the prices of apartments would vary depending on the level in which the apartment is based, and its finishes. They mentioned that so far, the investor responses to their homes are strong, and that they are in the process of streamlining further sale queries to accommodate this.

However, according to Dubai Land Department, there is not yet a single deal in Burj Dubai that has been registered with them. The Department mentioned that they undertake registration deals only when the building is completely finished, and that, currently all deals are only internally registered with the developer, Emaar Properties.

But, the department plans to tie-up with the company to implement the primary registration system, and the company will then have to register their sales when agreements between the parties are being done.

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