By Alice Kantor
The price of high-end Dubai properties is forecast to rise 13.5% 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% gain predicted for prime Miami property, which took second place.
___STEADY_PAYWALL___London and Seoul ranked joint-bottom of the 25-city ranking with prices in both conurbations expected to drop by 3%, according to the research.
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% next year, according to the report.
European cities such as Lisbon, Dublin, Madrid and Paris could see high-end home prices increase 4% next year, according to the report, despite the eurozone’s likely recession. Los Angeles is likely to see similar growth, as overseas buyers seek more exposure to the US dollar, while New York real estate prices are expected to climb 2%.
Overall, prime property prices will rise by an average of 2% across 25 of the world’s biggest cities, down from 5.2% 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.
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-With assistance from Nicolas Parasie.
© 2022 Bloomberg L.P.
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