Apartments in the Burj Khalifa, the world's tallest building and arguably Dubai's most prestigious address, are now available for rent at prices 40 per cent less than when the building opened 10 months ago.
A studio apartment can be had for as little as Dh80,000, with a one-bedroom unit renting for Dh100,000 annually, said Laura Adams, sales and leasing manager for Better Homes, one of the property brokerages marketing the property.
A number of units were recently handed over by Burj Khalifa's developer, Emaar Properties, which put pressure on rental rates by increasing the supply of available apartments.
Only eight per cent of the building's 900 apartments are occupied, she said.
Also a factor is that Dubai's property slump has caused nearby buildings to slash rates dramatically, and some of them compare favourably to the Burj Khalifa in terms of amenities.
The Address, also owned by Emaar, charges rates similar to those at the Burj Khalifa, but the apartments are fully-serviced, with seven restaurants on the premises, and many of the units featuring balconies with views of the Burj Khalifa.
The service charges of Dh53 per square foot at the Burj Khalifa are also considered higher than nearby residential buildings. For an average sized one-bedroom, the service charges would be more than Dh5,000 per month.
During much of the Burj Khalifa's construction, Dubai was in the midst of an off-plan property boom and apartments sold for more than Dh10,000 per square foot at the market peak.
Most units now for sale are listed at around Dh3,000 per square foot, Ms Adams said.