Luxury home prices expected to surge in Dubai, drop in London
THE price of high-end Dubai properties is forecast to rise 13.5 per cent next year, as booming interest from foreign buyers continues to turbocharge the market.
The sun-splashed business hub easily tops Knight Frank’s ranking of prime residential price growth for 2023, with a forecast annual percentage change more than double that of the 5 per cent gain predicted for prime Miami property, which took second place.
London and Seoul ranked joint-bottom of the 25-city ranking with prices in both conurbations expected to drop by 3 per cent, according to the research. New York was in the middle of the pack with forecast price growth of 2 per cent.
The UAE city’s relative affordability and welcome of Russian wealth is underpinning its surge. London, on the other hand, is expected to experience a slowdown, although central London prices — the preserve of the super-rich — are still expected to grow 3.5 per cent next year, according to the report.
Overall, prime property prices will rise by an average of 2 per cent across 25 of the world’s biggest cities, down from 5.2 per cent in 2022, according to Knight Frank.
“At a time when homeowners are having to contend with the unpredictability of soaring inflation, the rising cost of debt and higher taxes, the landscape in most global cities is now shifting,” said Kate Everett Allen, head of global residential research at Knight Frank.
Despite more subdued expected growth, London and New York are still the most popular cities to buy a house, according to Knight Frank’s survey of high-net-worth individuals. About nine out of ten Chinese buyers said they’re likely to buy a property in the coming year, compared to around half of British and American investors. BLOOMBERG
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