Luxury home prices in Dubai have increased at the fastest pace among the world’s top 100 cities growing by more than 44 per cent in 2021on the back of demand from high net-worth individuals.
According to Knight Frank’s latest report released on Tuesday, the real estate consultancy projected that the global luxury housing boom will be led by Dubai, Miami and Zurich. Knight Frank’s Prime International Residential Index 100 (PIRI 100) analyses prime price performance in 100 cities and second home markets worldwide.
Faisal Durrani, partner and head of Middle East Research of Knight Frank said the relentless demand from the world’s wealthy has fuelled a spectacular turnaround in the fortunes of Dubai’s residential market, with the decisive handling of Covid-19 by the authorities attracting the attention of global investors.
Durrani said it’s unlikely the growth of 2021 will be repeated this year.
Andrew Cummings, partner and head of Prime Residential at Knight Frank Middle East, said Dubai’s status at the top of the Prime Price Index is not a surprise and in the post-Covid landscape, ultra-high net worth buyers have descended on Dubai in very large numbers and whilst their “initial visits have been fuelled by the UAE’s handling of the pandemic, their decision to purchase property in the Emirate has been fuelled by something entirely different.”
Dubai’s investments in world-class infrastructure, health and education and amenities like the world’s best restaurants and hotels have helped transform the city into a big destination.
With a price growth of 42 per cent, Moscow came in second place. San Diego, Miami and The Hamptons make up the rest of the top five and of the 100 luxury markets tracked, only seven saw prices decline in 2021 and a staggering 35 per cent of locations saw prices increase by 10 per cent or more.
Overall, the Americas were the regional top performer, accounting for six of the top ten rankings and posting average growth of almost 13 per cent although Asia-Pacific (7.5 per cent increase) outpaced the EMEA region (7.2 per cent) largely driven by Australasia (+12.3 per cent). Asia alone managed a relatively modest rise of 5.5 per cent growth.
