Foreigners snap up Burj Khalifa property

Investors have bought luxury apartments worth $128m in world’s tallest tower

Iranian investors have snapped up property worth $128 million (Dh470 million) in the world’s tallest tower, the Burj Khalifa, in the last six months, according to data from Dubai’s government, using cash in many cases as Western sanctions crimp access to banks.

Iranians were the second-largest buyers of luxury apartments and commercial space in the Burj Khalifa, after Indian citizens, in the first half of the year, Dubai’s land department said yesterday.

Apartments in the 828-metre building range from Dh2,600 ($710) to Dh3,800 per square foot, according to real estate brokers. This is much cheaper than average prices in prime locations in London which could range anywhere between $3,000 to $6,000 per square feet.

Foreign investors bought real estate assets worth Dh28.3 billion in the first half of 2012, up 36 per cent over last year. The land department said 358 Iranians had purchased the apartments over six months to June 30 as Dubai’s property market shows signs of slowly stabilising.

“Iranians have problems getting finance, which is why they are mostly involved in cash buys,” said a Dubaibased real estate broker who declined to be identified.

Three floors

“We have sold three floors on the Burj and this involved Iranian buyers.”

Economic sanctions aimed at curbing Tehran’s disputed nuclear programme have cut off Iran’s links to the international banking system, impacting its trade with Dubai.

“Iranian investors have been in Dubai for a long time and have money here which can be easily invested,” Oliver Essex, a consultant with Powerhouse Properties, which specialises in Burj Khalifa property, said.

The land department added Britons were the third most active buyers while Emiratis came in fourth. Pakistani buyers rounded out the top five.