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Dubai topped the 30 cities analyzed in the Savills World Cities Index for luxury residential real estate, with an 11.2% increase in luxury home prices, according to a report released on Tuesday.
Overall, the value of luxury homes increased by 1.1%, on average, across 30 cities during the first six months of the year.
The pace of growth accelerated from the second half of 2022 when prices rose by only 0.8%, but average capital values only increased by 1.9% year-on-year in June, marking the slowest annual growth since December 2020, according to Savills, which specializes in financial services. Global real estate.
Paul Tosteven, director of Savles World Research, said the slowdown in sales markets, which was first recorded in the second half of last year, continued into 2023 in light of rising interest rates and slowing global economic growth.
He said that despite this, the growth in prices of luxury residential units remained positive on average, and we expect a growth in the capital value of 1.1% for the second half of the year across the 30 global cities that are tracked in the index.
According to the index, Asia-Pacific cities experienced the strongest growth in luxury real estate prices in the first half of the year.
Of the 13 cities in the Asia-Pacific region included in the index, 10 experienced price increases, followed by Europe, where seven of the 11 cities reported price increases.
Miami was the only US city to witness an increase in luxury home prices during the first half of the year, with an increase of 1.1%.
New York real estate
Real estate prices in this category in New York decreased by 0.7%, and although their sales were 12% lower than in a hectic 2022, they exceeded 2019 sales by 27%, indicating a return to pre-pandemic levels.
Prices fell the most in Los Angeles (-3%) and San Francisco (-3.7%) which came last in the index.
With fewer homes for sale in these West Coast towns, many potential buyers are choosing to stay put.
Lisbon, which rose by 2%, and Singapore, which rose by 0.1%, saw lower price growth at the beginning of the year, but both markets are expected to rebound over the next six months, according to the report. Both cities were at the top of the SFLs index last year.
Home purchases in Lisbon took longer to complete, while luxury real estate prices in Singapore were hit by higher land and construction costs.
