Tuesday, January 19, 2010

Rents for Burj Khalifa units to outdo other established highrises

The lease rates for units at Burj Khalifa, the world's tallest tower, are yet to be established, although analysts believe that the rental rates for commercial spaces in the tower will easily surpass the prevailing rates in other established high-rise buildings of the world, such as those of Petronas Towers in Kuala Lumpur or the Sears Tower at Chicago, United States.

The world's tallest tower spreads across Dh.600 per sq. ft. on an average, which is double that of other competing high-rises across the world, said Porush Jhunjuwala, Manager, Commercial Leasing at Better Homes.

The average price of offices across the world falls in the range of $30 to $40 per sq. ft. and in iconic towers such as the petronas in Kuala Lumpur and the Sears in Chicago it is about $60 and $85 respectively.

As far as Burj Khalifa is concerned, rentals will be based on demand and supply in the tower. Several large corporates have shown interest in the prestigious tower and have enquired for office space. However, it is too early to arrive at a definite rental amount what the tower is likely to command, said Jhunjuwala.

The height of the storey in which the unit is located, will be a major factor in determining the commercial rent value. The expected premium should be about 5 percent higher with the increase in height of each storey, he said.

Another main factor to determine the rent will be the service charges, which again, are yet to be cleared at the moment. Further, even service charges for the offices, form an important component of the rent, which also needs consideration, he said.

The selling prices of residential units are likely to appreciate soon, with delivery dates set from next month onwards. At present, the apartments will draw an average sale price of Dh.3500 to Dh.5000 per sq. ft. However, with the delivery of more apartments there will also be an improvement in the achievable sales prices, says Vineet Kumar, Head-Sales, Asteco, the leading property management firm.

Currently, the office space demands an average selling price of Dh.6000 per sq. ft. to Dh.7500 per sq. ft., he said. The units on the higher floors will obviously go for a higher price attracting a premium of about 15 percent in selling prices for higher storeys.

No comments: