Dubai ranks first among 100 global cities in the luxury residential price boom according to research by Knight Frank.

The Emirate of Dubai took first place in Knight Frank: Prime International Residential Index 100 (PIRI 100), which analyses real estate prices in 100 cities, and in the secondary housing markets around the world.

According to the latest research report by Knight Frank, The Wealth Report, prices for luxury homes in Dubai increased by 44% in 2021 after a seven-year recession, which demonstrates the fastest growth rate in the entire history of observations. The top 5 cities in the ranking, in addition to Dubai, included Moscow, San Diego, Miami and the Hamptons.

According to the Partner and Head of Middle East Research at Knight Frank Middle East, Faisal Durrani, the decisive handling of Covid-19 by the Dubai authorities attracted the attention of global investors. In a sentiment driven market, such activity has effectively helped mark the beginning of the city’s third cycle of real estate construction.

More and more ultra-high net worth buyers have come to Dubai in the post-Covid landscape. Investments by the emirate in sectors including healthcare and education, as well as the world class infrastructure, have helped transform Dubai into the best destination for real estate ownership. According to the Partner and Head of Prime Residential at Knight Frank Middle East, Andrew Cummings, quality is the top priority for developers creating first-class real estate.

The main driving force behind the high demand for luxury homes is the availability of cheap financing, low interest rates, more flexible working patterns, rising wages and accrued savings in lockdowns, as well as the appeal of the actual property as an inflation hedge. The factor of wealth creation also has a significant impact on demand for luxury homes in the emirate of Dubai, as 5 million new millionaires appeared around the world in 2021.

The Global Head of Research at Knight Frank, Liam Bailey, said that the luxury housing boom in Dubai will continue in 2022, which will lead to a further increase in housing prices. In the forecast from Knight Frank for 2022, Dubai, Miami and Zurich will occupy the leading positions with an expected increase of 10-12% in prices for luxury housing by the end of the year.