Luxurious living in Dubai

Originally designed as a luxurious hotel, BurJuman Residences was recently transformed into luxurious residential apartments. BurJuman Residences is strategically positioned next to the BurJuman Mall, one of Dubai’s oldest and most prestigious shopping destinations. As a hotel, the building catered to both business travelers and tourists and offered high-end amenities and convenient access to the mall’s retail, dining, and entertainment options. Over the years, the hotel became a well-known part of the Bur Dubai area, serving as a symbol of the district’s blend of commercial activity and hospitality.

Abdelaziz Amarouayache, CPM^®

Multiple factors drove the decision to convert BurJuman Residences from a hotel to residential apartments. Abdelaziz Amarouayache, CPM^®, the head of Residential and Commercial Properties for Al Ghurair Group, oversaw the conversion project. He says the hotel’s performance had declined in the post-pandemic period. This was largely due to a downturn in the hospitality industry and increased competition, such as the opening of a new DoubleTree by Hilton Hotel directly across the street. These conditions led stakeholders to reevaluate the hotel’s viability. Amarouayache and his team conducted a thorough feasibility study, assessing the potential for rental income, operating expenses, and market demand. They ultimately concluded that a shift to residential use would better align with current market conditions and ensure a sustainable future for the property. They proposed the conversion as a solution. 

The conversion process

The initial planning and decision-making process was critical to the success of the conversion. Amarouayache emphasized the importance of a detailed feasibility study, which was conducted to analyze the project’s financial viability. This study included estimates of capital expenditures, projected rental income, operating expenses, and anticipated occupancy and retention rates. Based on these findings, the project team developed a comprehensive plan, outlining the necessary steps to convert the hotel into residential apartments while maintaining the property’s value and appeal.

Nevertheless, the conversion process was not without its challenges. One of the major obstacles was the age of the building, which presented issues such as outdated infrastructure and worn-out facilities. For instance, the chilled water system, essential for cooling in Dubai’s hot climate, had old pipes with poor insulation. Amarouayache said that addressing this required significant upgrades to ensure efficient and reliable operation for residential use.

Another challenge Amarouayache highlighted was the absence of a garbage chute, a standard feature in high-rise residential buildings in Dubai. This was a particular issue due to the building’s existing design as a hotel, which did not necessarily accommodate the waste management needs of permanent residents. Additionally, the building lacked a liquefied petroleum gas (LPG) system, commonly used in residential kitchens. Due to budget and timeline constraints, the decision was made to install electric cooking facilities instead.

Overall, the most notable renovations included reconfiguring the floor plans to create spacious and functional living units, upgrading the building’s infrastructure to support long-term residential use, and ensuring compliance with modern building codes and safety standards. These changes were essential to transforming the building from a transient hotel environment into a permanent, high-quality residential space.

Interestingly, sustainability was a key consideration throughout the conversion process. Amarouayache says one of the most significant sustainable implementations was chilled water meters for each of the 148 units. This allows tenants to be charged for their actual use of the air conditioning system, thereby encouraging energy conservation and reducing overall consumption. Additionally, Amarouayache mentioned that energy-saving devices with motion sensors were installed in all corridors and parking levels to minimize electricity use. These measures reduce the building’s environmental impact and contribute to lower operating costs. 

Market positioning and strategy

The converted BurJuman Residences were strategically positioned to appeal to a specific demographic: high-income expatriates, business professionals, and affluent families who seek luxurious living spaces in a central location. The property’s proximity to the BurJuman Mall and the metro station makes it particularly attractive to those who value convenience and accessibility. The upscale design and modern amenities also cater to residents prioritizing quality and comfort in their living environment.

According to Amarouayache, a comprehensive marketing strategy—which utilized BurJuman Mall’s marketing channels—was employed to attract potential residents. Promotional screens in the mall’s parking and shopping areas displayed images and videos of the apartments, showcasing their features and amenities. Additionally, a promotional kiosk was set up in the lobby of the adjacent business tower, targeting working professionals.

At the same time, the building was advertised on Dubai’s leading property portals, such as Property Finder and Bayut.com, as well as on social media platforms like Facebook and Instagram. These online campaigns were designed to reach a broad audience, leveraging high-quality visuals and targeted advertising to generate interest and inquiries from potential tenants.

On a broader scale, the transformation of BurJuman Residences contributes to Dubai’s overall urban development. The project aligns with the city’s vision of creating more sustainable and high-quality living environments that prioritize the needs of a diverse population. In repurposing an existing structure, the project also demonstrates the potential for adaptive reuse in urban development and offers a model for future projects in the city.

While there are no immediate plans for expansion, the management team is committed to continuously improving the property. This includes exploring new ways to enhance the resident experience, whether by introducing new amenities or organizing community events. The goal is to ensure that BurJuman Residences remains a top choice for luxury living in Dubai for years to come.