Dubai topped the “Prime International Residential 100” index of luxury homes according to a report from real estate consultancy firm Knight Frank Middle East.
The consultancy analyzes the main price performance in 100 cities and their real estate markets around the world.
According to the report, the main prices of luxury homes in Dubai accelerated by 44% in 2021, and the Emirate and its value have shifted into a major global focus, with overall prices continuing to drop 30% from their peak in 2014.
In its Knight Frank Wealth Report, the consultancy found that among the luxury real estate markets, only seven saw price declines between 2021 and 2021, while 35% experienced an increase of 10% or greater. According to the report, this led to an increase in demand for secondary market homes. More than 200,000 are owned by wealthy people around the globe.
Shift In Fortunes
Faisal Durrani, head of Middle East research at Knight Frank, said: “The continuous demand from the world’s rich has led to an amazing shift in the fortunes of the residential market in Dubai, in addition to the government’s decisive response to the variables of the Corona virus, and the positive sentiment that moves the market. All this attracted the attention of global investors even more, and helped mark the start of the city’s third real estate cycle in an astonishing way.”
Buyers Flock To Dubai
The head of the Prime Residential unit in the Knight Frank Middle East, Andrew Cummings, said: “Dubai’s position at the top of the (Prime Price) index was not surprising, in the post-COVID-19 scene, buyers of ultra-rich wealth flocked to the Emirate in numbers. Very large, driven by Dubai’s huge investments in infrastructure according to the latest international standards, the quality of the health and education sectors, along with the exceptional lifestyle and amenities in Dubai, as well as containing the best restaurants and hotels in the world, which turned the emirate into a leading destination that people want to own property in it.”
He added: “Quality has now become the password for developers who are building high-quality real estate in Dubai, in response to the requirements of the world’s elite of ultra-wealthy people who have demonstrated their eagerness to own a home in Dubai over the past year.”
With its home prices growing by 42%, Moscow ranked second, driven by the Russian mortgage support program and narrow supply, and San Diego came in third place on the Knight Frank index with luxury home price growth of 28.3%, Miami fourth with 28.2% growth, and the Hamptons fifth With a growth of 21.3%.