The Middle East continues to see rapid wealth growth with its luxury homes registering the highest price increase globally compared to 45 other markets, according to a Knight Frank report.
In the 12-month period up until June 2023, the price of luxury homes in Dubai rose the most globally at 48 percent, according to a Knight Frank report. When compared to the lows recorded during the pandemic in the third quarter of 2020, lux home prices in the Middle Eastern hub rose by 225 percent.
This was followed by Tokyo (26.2 percent), Manilla (19.9 percent), Miami (7.5 percent) and Shanghai (6.7 percent).
Strong Demand, Weak Supply
Out of all 46 markets in the report, lux home prices rose by an average of 1.5 percent. Despite the pressure of rising interest rates, over half (57 percent) of the markets saw a price boost.
«Prices are being supported by strong underlying demand, weak supply following disruption to new-build projects during the pandemic, and an ongoing return of workers to cities,» said Liam Bailey, global head of research at Knight Frank.
