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Rents in Burj Khalifa drop further.

Rents in Burj Khalifa drop further.

Old Oct 23rd 2010, 9:37 am
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Default Rents in Burj Khalifa drop further.

Costs of renting a studio in the tower are down to Dh90,000 a year, according to latest offers of property broker Better Homes

Dubai: Rents for apartments in the world's tallest tower are dropping further, a quick search of property offers of Dubai agents shows.

Costs of renting a studio in the tower are down to Dh90,000 a year, according to latest offers of property broker Better Homes.
The asking price for a one bedroom apartment currently stands at Dh120,000, and two bedrooms are advertised for Dh220,000.

Similar offers can be found at other brokerages such as Bayut or Propertyfinder.

According to Better Homes sales adviser Laura Adams, about 825 of 900 apartments in the Burj Khalifa are still empty, some nine months after the opening of the tower.

Rents have dropped about 40 per cent since Gulf News exclusively reported the first offers in the tower, which stood at Dh140.000 for a studio at the beginning of June.

http://gulfnews.com/business/propert...rther-1.700566
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Old Oct 23rd 2010, 9:59 am
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Default Re: Rents in Burj Khalifa drop further.

If anyone has seen An Idiot Abroad recently (which i highly recommend) the 'idiot' went to Petra. In his view he said it'd be better to live in a cave overlooking The Treasury than it would be to live in The Treasury overlooking the cave.

A bizarre way of thinking but I think the Burj is an ideal example of this.
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Old Oct 23rd 2010, 1:50 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by coffindodger View Post
Costs of renting a studio in the tower are down to Dh90,000 a year, according to latest offers of property broker Better Homes

Dubai: Rents for apartments in the world's tallest tower are dropping further, a quick search of property offers of Dubai agents shows.

Costs of renting a studio in the tower are down to Dh90,000 a year, according to latest offers of property broker Better Homes.
The asking price for a one bedroom apartment currently stands at Dh120,000, and two bedrooms are advertised for Dh220,000.

Similar offers can be found at other brokerages such as Bayut or Propertyfinder.

According to Better Homes sales adviser Laura Adams, about 825 of 900 apartments in the Burj Khalifa are still empty, some nine months after the opening of the tower.

Rents have dropped about 40 per cent since Gulf News exclusively reported the first offers in the tower, which stood at Dh140.000 for a studio at the beginning of June.

http://gulfnews.com/business/propert...rther-1.700566
I read somewhere 80K for a studio, but what is not being mentioned in many places is that the maintenance charges are 53 dirhams a Sq Ft so if you have a 8o Sq ft studio thats 40 K so not much of the rent left for the landlord!!!!
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Old Oct 23rd 2010, 3:52 pm
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Default Re: Rents in Burj Khalifa drop further.

I think this may be a scam.

A guy I work with answered one of these ads, met up with agent and then was given a completely different set of figures (ie about 4 times as much).

Has anybody checked out the authenticity of the adverts/prices quoted?
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Old Oct 23rd 2010, 5:55 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by Jim Smith View Post
I read somewhere 80K for a studio, but what is not being mentioned in many places is that the maintenance charges are 53 dirhams a Sq Ft so if you have a 8o Sq ft studio thats 40 K so not much of the rent left for the landlord!!!!
Should be 800 not 80!
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Old Oct 23rd 2010, 5:59 pm
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Default Re: Rents in Burj Khalifa drop further.

Alright, first of all it is awkwardly stunning to read such offers in what had a little earlier this year to be the most prestigious building in the Middle East and Asia...

90 000 derham is nothing in proportion to what initial/nominal speculations set the rents to be approximately revolving around at the incept of running the building...AND it is nothing or at least rediculous compared to other residential or commercial rentals in the region including arab countries..

Eventually, if this mediocre rental figure is indeed effective through brokerage then I might say Dubai should apply different measures to rule its damaged economy .

I am totally surprised though
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Old Oct 23rd 2010, 6:08 pm
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Default Re: Rents in Burj Khalifa drop further.

I remembered a Saudi guy went Dubai to visit the building when opened. he paid like 100 USD to get into the top of it.. If the gov dedicated the building to be like exhibition or tourisitic monument, it d be much more profitable than running it commercially I guess!!!
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Old Oct 23rd 2010, 7:38 pm
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Default Re: Rents in Burj Khalifa drop further.

Heres the Yahoo article from Time.

There's a half-off sale in the world's tallest building.

Even with an address at the iconic Burj Khalifa, rents for residences in the tower are not immune from Dubai's real estate crash. Indeed, nearly a year after it was inaugurated with a massive water-and-fireworks display, about 825 of the tower's 900 ultra-luxury apartments remain unoccupied, according to Better Homes, a real estate brokerage in Dubai.

The cost of renting a studio with floor-to-ceiling windows, marble fixtures and wooden floors has dropped to $1,815 a month from $3,025, while a one-bedroom apartment is available for $2,722 (it used to be $4,536), the brokerage says. Two-bedroom residences are expected to get $4,310, down from $7,183. Interested parties "call every few days and go for a viewing," says Imad Ben Khadra, a Moroccan expatriate who owns two 1,000-sq.-ft. one-bedroom apartments he purchased in late 2008 for about $950,000, both of which he is trying to rent out. "We got some offers [from prospective tenants], but nobody confirms." (See pictures of the Burj Khalifa, the tallest building in the world.)

Varun Chaudhary bought two two-bedroom residences in the Burj for about $1.5 million in 2005 even before construction began. He saw the value leap from $762 per sq. ft. to $3,811 per sq. ft. at the heights of the boom. Today, those values hover just above his purchase price. But he says he isn't worried about his investment. "These properties will recuperate faster than other properties because it's an icon, because it's only one in the world," he says. "You just have to say 'Burj Khalifa.' That's the address; you don't have to explain. It's a style statement in itself." (See how the U.S. is leaning on Dubai to pressure Iran.)

Still, the Burj, with its one-of-a-kind address and amenities like the first-ever Armani Hotel, is only the most high-profile example how Dubai's once flying real estate market has crashed. Overall in the emirate, property prices have dropped an average of 50%. Some half-built projects, located away from the main highway that runs through the city, may never be completed because their values have dropped too much, analysts say.

[Photos: More of the incredible Burj Khalifa]

But it's the units that will be completed that are looming as a problem. The Dubai economy must still digest a flood of housing units coming on line or soon to be opened, which will further dampen prices. Through September, 27,000 residential units have been put on the market, and another 9,000 are expected to be completed by the end of the year, according to real estate firm Jones Lang LaSalle. For 2011, the firm forecasts that about 30,000 new units will come on line. A glut in commercial property has forced landlords to offer previously unheard-of incentives such as free rent and allowances to finish out shell construction space. "They built the infrastructure for a much larger economy than it can [now] attract," says Wissam Haroun, a Syrian expatriate who owns entertainment and technology companies in Dubai. (See pictures of Dubai.)

Worried about the glut, Dubai's Real Estate Regulatory Agency recently said it was canceling or in the process of canceling about half of all projects registered with the authority. Of about 980 developments, 495 are on the chopping block, according to a Dubai sovereign-bond prospectus made public last week.

Some, however, see opportunity in the depressed prices. "It's a massive change in terms that it's no longer the man on the street or the lady on the street buying property on spec or off plan," says Paul Devonshire, a director with Pramerica Real Estate Investors who specializes in the Middle East and North Africa region. Now, he explains, institutions or more savvy investors are moving in, eyeing distressed or repriced assets. (Comment on this story.)

But the buzz was decidedly subdued at the recent Cityscape Global, the annual real estate exhibition that in the past featured the launch of glitzy projects like the Palm Trilogy, the world's largest man-made islands. The name of the event itself had been changed from Cityscape Dubai in order to expand the focus beyond the city-state. Only a fraction of exhibitors - 200, down from around 1,000 during the boom - showed up to participate.

With speculators gone and credit still tight, Dubai is going about the hard work of adjusting to its new economic reality. Top of the list is paying back creditors that helped finance the boom. Over the past decade, Dubai amassed $109 billion in debt, with about $15.5 billion due this year, the International Monetary Fund estimates. Dubai World, one of the three main holding companies controlled by Dubai's ruler, Sheik Mohammed bin Rashid al-Maktoum, said last month that 99% of its creditors had agreed to alter the terms on $24.9 billion of its debt. Last November, Dubai World sent stock markets around the world tumbling when it announced it wanted a moratorium of its debts. "We are back. Of course we are back," Sheik Mohammed said in a Bloomberg TV interview last month while attending the Alltech FEI World Equestrian Games in Lexington, Ky.

But, having been through the financial volatility, few seem to want to part with their cash just yet. The Syrian expatriate Haroun, who has lived in Dubai most of his life and plans to raise his family there, says he would like to buy a home. But his forays into the market so far have left him unsatisfied. "People got stupid rich and stupid poor at the same time," he says. "I'm glad I stayed out of it."
http://news.yahoo.com/s/time/2010102...08599202693400

These properties will recuperate faster than other properties because it's an icon, because it's only one in the world," he says. "You just have to say 'Burj Khalifa.' That's the address; you don't have to explain. It's a style statement in itself.
Well ofcourse it's the only one in the world, there's also only 1 Taipei 101, 1 Petronas Towers, 1 Empire State , 1 Sears Tower etc...
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Old Oct 23rd 2010, 7:52 pm
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Default Re: Rents in Burj Khalifa drop further.

CeeBee, am still catching up on "An Idiot Abroad" and have only seen two, The Great Wall of China and Mexico, Chitzen Itza. As you say, well worth watching - if the premise is true, then it's both cruel and comical.

For those who haven't seen this yet here's an idea of what you could look forward to (or not as the case may be):

http://www.telegraph.co.uk/culture/t...from-hell.html
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Old Oct 24th 2010, 5:14 am
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Default Re: Rents in Burj Khalifa drop further.

Hmm. Back in June/July agents were asking 240K for a one-bedroom in the Burj.

If you're attracted to the prospect of living in the Burj it says a great deal about who you are. Let's start with foolish. Then move on to shallow, followed with materialistic.
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Old Oct 25th 2010, 1:21 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by Ethos83 View Post
Hmm. Back in June/July agents were asking 240K for a one-bedroom in the Burj.

If you're attracted to the prospect of living in the Burj it says a great deal about who you are. Let's start with foolish. Then move on to shallow, followed with materialistic.
Shallow, foolish and materialistic...you've mentioned three reasons why I left Dubai after seven years

N.
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Old Oct 25th 2010, 1:58 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by Boomhauer View Post
Heres the Yahoo article from Time.



http://news.yahoo.com/s/time/2010102...08599202693400



Well ofcourse it's the only one in the world, there's also only 1 Taipei 101, 1 Petronas Towers, 1 Empire State , 1 Sears Tower etc...
Actually there are 2 Petronas Towers. My 15 year-old son reckons I should move to the Burj, worth suffering the drive to AD every day. I didn't quite agree with him, although it would be pretty high on the knicker-elastic-snapping stakes I reckon...
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Old Oct 25th 2010, 1:58 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by Bahtatboy View Post
Actually there are 2 Petronas Towers. My 15 year-old son reckons I should move to the Burj, worth suffering the drive to AD every day. I didn't quite agree with him, although it would be pretty high on the knicker-elastic-snapping stakes I reckon...
Or is that a bit shallow?
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Old Oct 25th 2010, 1:58 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by Bahtatboy View Post
Or is that a bit shallow?
Are you allowed to quote yourself?
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Old Oct 25th 2010, 1:59 pm
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Default Re: Rents in Burj Khalifa drop further.

Originally Posted by Bahtatboy View Post
Are you allowed to quote yourself?
Yes.
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