Knight Frank’s latest wealth report revealed that Dubai had the highest growth in luxury home prices globally last year, with a surge of 44.2% in the costs of high-end residential properties.
Dubai secured the top spot on Knight Frank’s Prime International Residential Index (PIRI 100) for the second consecutive year, highlighting the city’s reputation as a “second hub for global UNHWIs,” supported by the UAE’s various visa programs.
The PIRI 100 monitors property prices in 100 markets globally, and Dubai’s price growth was significantly greater than other markets such as Aspen, which had a price rise of 27.6%, Riyadh (25%), Tokyo (22.8%), and Miami (21.6%).
The report said Dubai will grow “rapidly” as a wealth hub. “Dubai has developed a very pragmatic approach to attracting wealthy residents – and has worked hard to correct a perceived area of weakness, namely length of stay,” Knight Frank said.
“Visa options used to be mostly short term and work related, but with the Golden Visa scheme, longer-term residence becomes a possibility.”
High-net-worth individuals have become increasingly mobile since the onset of the COVID-19 pandemic and are interested in buying properties in locations that offer opportunities for long stays. In 2022 alone, 13% of UNHWIs were planning to apply for a second citizenship, according to Knight Frank.
UHNWIs owned an average of 3.7 homes in 2022, up from 2.9 in the previous year. Middle Eastern and Asian UHNWIs owned the most properties, averaging 5.3 and 3.9, respectively.
In addition to Dubai, other locations, including places with access to sun or ski activities, have also garnered the interest of millionaires looking to invest in real estate. Knight Frank’s Head of International Sales, Mark Harvey, stated that areas such as Provence, Tuscany, the French Alps, and Barbados have been among the “hotspots with no let-up in enquiries” in the previous year.
Harvey added that the pandemic had influenced people’s decision to live in the present, making the dream of a second home or upgrading their existing property a reality, particularly for those transitioning to hybrid working or early retirement.
According to Knight Frank, the appreciation of the US dollar was a crucial factor for some wealthy buyers, with some observing “double-digit discounts” in eurozone properties due to currency shifts last year.
