Dubai has maintained its top position on the prime global cities index for the eighth consecutive quarter, with luxury property prices surging by 48.8% in the 12 months leading up to June of this year, according to Knight Frank’s ‘Prime Global Cities Index Q2 2023’ report.
Since hitting a pandemic-related low in Q3 2020, luxury home prices in Dubai have risen by an astonishing 225%. In contrast, the global average annual prices saw a 1.5% increase across the 46 markets covered by the index in the same 12-month period.
The report also highlighted Tokyo and Manila as the second and third cities with price growth at 26.2% and 19.9% respectively.
Mumbai, ranking sixth for YoY price growth in Q2 2023, is forecasted to record the highest annual price increase of 5.0% on the Prime Global Cities Index for the year 2024. Bengaluru ranked 20th with a 3.6% YoY increase, while New Delhi positioned itself at 26th with a 0.2% YoY increase.
Knight Frank’s global head of research, Liam Bailey, emphasized that while global housing markets are facing pressure from higher interest rates, strong demand, supply disruptions due to the pandemic, and the return of workers to cities are supporting prices.
However, 14 cities experienced price declines in the second quarter, with Wellington showing the greatest drop of 15.1%. Frankfurt and San Francisco were also among the cities with notable price decreases.
Looking ahead, Knight Frank expects Mumbai and Auckland to lead the highest change in prime residential prices in 2024, both predicted to experience a 5.0% increase.
Overall, the luxury housing market’s average price in 26 global prime residential markets is projected to grow by 2.0% in 2024.
Shishir Baijal, CMD of Knight Frank India, noted the Indian economy’s resilience in the face of global economic challenges, with its stronger growth momentum and better inflation control leading to stability in policy interest rates over the past two quarters.