According to The Wealth Report,Knight Frank’s flagship research report – prime residential prices showed significant strength in 2023. Of the 100 markets tracked in Knight Frank’s Prime International Residential Index (PIRI), 80 recorded flat or positive annual price growth. Luxury prices increased by an average of 3.1% in 2023, with Manila (26%) leading the rankings and Dubai (15.9%*) in the second spot. The Bahamas (15%) comes in third place with the Algarve and Cape Town (both 12.3%) completing the top five.
Prime residential values in Dubai, which encompass the neighbourhoods of the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, have experienced record growth during 2023, albeit this has been from a low base, Knight Frank says. Furthermore, Knight Frank’s 2024 global prime residential markets forecast positions Dubai in third place at 5%. This comes hot on the heels of an estimated 16% rise in prime residential prices in 2023 and building on the 44.4% rise registered in 2022.
Faisal Durrani, Partner and Head of Research, MENA says: “The total number of prime homes available for sale declined by 38.5% in Dubai during 2023, echoing the 52% decrease in sales inventory in Dubai’s Burj Khalifa over the same period. Owners are clearly deciding to hold on to their homes for longer, with inventory levels falling sharply, signalling the longer-term residency mindset now bedding in amongst the increasingly dominant buy-to-hold purchasers. Unsurprisingly, this behaviour has helped to sustain price growth in the emirate’s prime market, which registered the second fastest rate of growth globally in 2023 at 15.9%*”
“The accolades for Dubai’s prime market are piled high following the city’s record breaking 431 US$ 10 million+ home sales, including an all-time high of 56 properties trading for over US$ 25 million last year. Despite the record-breaking sales of luxury homes, Dubai ranks towards the bottom end of the most expensive prime markets globally. Indeed, in our global tracker of 15 prime residential markets around the world, US$ 1 million secures 979 square feet of residential space, three-times more than London, New York, or Singapore and about 806 square feet more than first-placed Monaco, where US$ 1 million buys around 172 square feet of space. Dubai remains one of the most affordable luxury markets in the world, which only adds to its appeal among the international elite who dominate the upper echelons of the market”.
Will McKintosh, Regional Partner and Head of Prime Residential, MENA says: “Dubai’s residential market is no longer emerging. It has emerged. The nature of buyers in the market is testament to this shift, as is the type of real estate being developed in the city, much of which would not look out of place in other global cities. The city’s relative affordability, combined with an unparalleled lifestyle offering in one of, if not the safest cities in the world, means not only are international second home buyers zeroing in on the emirate, but residents in the city are staying for longer and putting down roots, which is fostering the emergence of highly sought after communities away from the luxury beach-front mansions. For instance, we found a balance in Jumeirah Islands, which offered both in terms of tranquil lake views, newly renovated contemporary style homes & convenient access to local amenities.”
About Knight Frank:
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 487 offices across 53 territories and more than 20,000 people The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com.
In the MENA region, we have strategically positioned offices in key countries such as the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, and Egypt. For the past 13 years, we have been offering integrated residential and commercial real estate services, including transactional support, consultancy, and management.
Understanding the unique intricacies of local markets is at the core of what we do, we blend this understanding with our global resources to provide you with tailored solutions that meet your specific needs. At Knight Frank, excellence, innovation, and a genuine focus on our clients drive everything we do. We are not just consultants; we are trusted partners in property ready to support you on your real estate journey, no matter the scale of your endeavour.
