It surpassed Tokyo, Miami and Shanghai .. Dubai’s luxury real estate is the highest in the world, prices have jumped 225% since the third quarter of 2020

26 Aug

Dubai remains the world’s number one market for luxury real estate, with luxury home prices in the emirate increasing by 48.8% in the 12 months to June 2023, according to the second-quarter 2023 report issued by Knight Frank. This increase is the highest in the world and puts Dubai in first place in the Major Global Cities Index for the eighth consecutive quarter.

Real estate prices in the emirate are now up 225% after bottoming out in the third quarter of 2020 due to the pandemic.

“Dubai’s strong growth continues, maintaining its number one position in our rankings for the eighth consecutive quarter,” said Knight Frank.

Luxury real estate prices also increased significantly in Tokyo, by 26.2%, followed by Manila (19.9%), occupying the second and third places, respectively, in the Knight Frank table of annual price growth. Miami came in fourth with a growth of 7.5%, followed by Shanghai with a growth of 6.7%. The valuation-based index tracks luxury real estate prices around the world.

On average, annual prices increased by 1.5% in the 46 markets surveyed, indicating an improvement over the previous quarter. More than half (57%) of the cities experienced an increase in prices during the quarter, although 14 markets recorded a decrease in prices during the same period.

“The average annual growth of 1.5% remains modest, well below the recent peak of 10.2% seen in the fourth quarter of 2021, but the strongest growth rate since the third quarter of 2022,” Knight Frank said. However, other major markets experienced a slowdown, and these include Toronto, where prices fell -0.1%, London (-0.5%), Brisbane (-1%), Beijing (-1.5%), and Hong Kong (-1.5%). Los Angeles (-2.5%) and New York (-2.5%).