In the year to June, prices for luxury houses in Dubai increased by 48.8%.
For the eighth consecutive quarter, Dubai continued to lead a ranking of top worldwide cities for the world’s highest growth in the price of luxury real estate.
According to Knight Frank’s research, “Prime Global Cities Index Q2 2023,” the cost of luxury houses in Dubai increased by 48.8% in the 12 months leading up to June of this year. Luxury house prices in Dubai have increased by 225% since hitting a historic low in Q3 2020, it added.
In the 46 markets covered by the index, average yearly prices increased 1.5% globally in the year leading up to June. With 57% of localities reporting price increases over the quarter, the outcome was better than the previous quarter.
The movement of prime residential prices across cities throughout the world is tracked by the Prime Global Cities Index, which is based on valuation. The index measures local currency nominal prices.
Tokyo and Manila took the second and third places, with price increases of 26.2% and 19.9%, respectively. Other top ten cities were Miami, Shanghai, Mumbai, Madrid, Nairobi, Lisbon, and Bangkok.
In Q2 2023, Mumbai had the sixth-highest YoY price rise. On the Prime Global Cities Index for the year 2024, the city is expected to record the highest annual price at 5%. Mumbai’s upscale housing costs increased 5.2% year over year in the second quarter of 2023. Bengaluru placed 20th in Q2 2023 with a growth of 3.6% YoY, while New Delhi placed 26th with an increase of 0.2% YoY.
The Knight Frank Prime Global Cities Index’s most recent findings confirm that prices are being supported by strong underlying demand, weak supply due to the disruption of new-build projects during the pandemic, and an ongoing return of workers to cities. The global housing markets are still under pressure due to the switch to higher interest rates. Price changes in many markets are likely to be less pronounced than was anticipated even three months ago because uncertainty over the direction of inflation appears to have decreased in recent months. Knight Frank’s worldwide head of research, Liam Bailey, stated.
Knight Frank reports that in 14 cities, prices decreased in the second quarter. According to the data, prices in Wellington fell by 15.1%, placing it bottom in the table. San Francisco and Frankfurt, where prices fell by 11.1% and 12.9% respectively, were also in the bottom three.
Other significant cities that had yearly price drops in the third quarter included London (down 0.5%), Hong Kong (down 1.5%), Los Angeles (down 3.9%), and New York (down 4.5%).
Mumbai and Auckland are expected to have the greatest change in prime residential values in 2024, according to Knight Frank. In both cities, prime home prices are anticipated to rise by 5.0 percent in 2024. The main factors driving up prices in Mumbai’s luxury property market will be rising GDP numbers, the city’s relative value, and infrastructural investments. In 2024, it is anticipated that the average price across 26 global prime residential markets will increase by 2.0%.
The Indian economy shone out as a great achiever against the background of slow global development and concerns over inflation that dominated a substantial chunk of 2023. The Indian economy, showing stronger growth momentum and better control over inflation, managed to maintain stability in its policy interest rates over the last two quarters, said Shishir Baijal, CMD, Knight Frank India, while central banks in major developed economies around the world announced unprecedented policy rate hikes.
