Dubai’s luxury homes recorded a 44 per cent increase in values through last year, continuing a strong showing that started in the second-half of 2020
Dubai topped the global charts for the biggest increase in luxury home prices during 2021, with Moscow following close behind, according to the latest ‘Global Wealth report’ by the property consultancy Knight Frank.
The others in the Top 5 are US destinations – San Diego, Miami and The Hamptons.
Dubai’s luxury homes recorded a 44 per cent increase in values through last year, continuing a strong showing that started in the second-half of 2020.
There were multiple deals valued at Dh100 million ($27.23) plus on the Palm, while the Jumeira Bay Island with its Bulgari homes and resort fetched record plot deals.
Based on market talk, January and February of this year continued to reflect sustained demand for prime homes in Dubai, and this could see a further spike if more high networth Russian investments are directed to purchases in the coming months.
Moscow’s second ranking in the Knight Frank report had to do with Russia’s mortgage subsidy programme and ‘tight supply’, according to the Knight Frank report, which was done before the conflict with Ukraine broke out and which led to the US and EU announcing sweeping sanctions.
Faisal Durrani, Partner and Head of Middle East Research at Knight Frank, said: The relentless demand from the world’s wealthy has fuelled a spectacular turnaround in the fortunes of Dubai’s residential market, with the decisive handling of COVID-19 by the authorities attracting the attention of global investors. In a sentiment-driven market, this has helped to spectacularly mark the start of the city’s third property cycle.
According to him, it’s unlikely the growth of 2021 will be repeated this year, but with such limited prime stock, the top end of the market still has room for growth.
