Cities Named as Leaders in Premium Real Estate Price Growth in Q2 2023
The Prime Global Cities Index (PGCI) report, published by Knight Frank, highlighted the cities that experienced the most significant increase in prime property prices in the second quarter of 2023. According to the report, luxury property prices in Dubai have increased by 225% since the beginning of 2020. The Emirates have maintained their leading position in the global price growth ranking for 8 consecutive quarters.
PGCI is an indicator that monitors changes in the value of luxury housing in 46 cities worldwide, using information from the international research network Knight Frank. It reflects actual prices (excluding inflation) in local currency.
The second quarter of 2023 was marked by a recovery in prices, fully offsetting the previous decline in the first quarter, which amounted to 0.4%. During this period, luxury property prices increased in 57% of the cities studied worldwide. Particularly significant improvement was observed in the city of Stockholm, which rose from 41st place in the first quarter to 10th place in the second quarter of 2023.
Table of data on the growth of prices for prime property in the top 10 cities in the world for the period from the second quarter of 2022 to the second quarter of 2023:
|City||Country||Percentage Increase in Prices from Q2 2022 to Q2 2023|
These figures indicate a significant increase in demand for premium housing in these cities. Dubai, in particular, stands out, showing the highest percentage growth in premium housing prices worldwide. This may be attributed to economic development and increased interest from foreign investors.
Overall, the premium housing market continues to demonstrate stability and growth, and these data are of interest to investors and real estate agents working in this field. In the future, continued trends and potential price growth for premium housing in these cities can be expected.
- Prices for premium housing in Dubai have increased by 225% since 2020, making the emirate a global leader in price growth for the past eight consecutive quarters.
- The Knight Frank Prime Global Cities Index showed a 1.5% increase in premium housing prices over the past 12 months ending in June 2023, indicating market recovery after a 0.4% decrease in the first quarter of this year.
- The second quarter of 2023 was successful for premium housing prices, as they increased in 57% of the surveyed cities worldwide.
- Stockholm ranked 10th in the list of cities with the most rapid growth in premium housing prices in the second quarter of 2023. For comparison, Stockholm was ranked 41st in the first quarter of 2023.
- The top 10 cities with the most rapid growth in premium housing prices include Dubai, Tokyo, Manila, Miami, Shanghai, Mumbai, Madrid, Nairobi, Lisbon, and Bangkok.
- Premium housing prices in Dubai grew by 48.8% from the second quarter of 2022 to the second quarter of 2023.
- The capital of Japan, Tokyo, ranked second. Premium housing prices in Tokyo increased by 26.2% on an annual basis.
- Manila, the capital of the Philippines, ranked third in the ranking with a 19.9% annual growth in premium housing prices.
- Miami in the USA showed a 7.5% increase in premium housing prices over the year.
- The head of research at Knight Frank noted that uncertainty regarding inflation has decreased, which may lead to less significant price corrections in the premium housing market.
Why is Dubai leading in the growth of premium real estate prices?
Dubai is leading in the growth of premium real estate prices for several reasons. Firstly, Dubai is one of the most dynamically developing cities in the world, attracting investors and wealthy individuals from around the globe. This creates a high demand for premium real estate and, consequently, price growth.
Secondly, Dubai offers unique living opportunities such as a high level of comfort and security, modern infrastructure and services, luxurious residential complexes, and beautiful nature. All these factors attract successful individuals who are willing to pay a high price for exclusive housing.
Thirdly, Dubai is an international financial center and business hub, where numerous large companies and corporations have their offices. As a result, the city is home to many successful businessmen and highly paid professionals who are looking for premium real estate for comfortable living and meeting their needs.
Lastly, Dubai is renowned for its luxurious hotels, shopping malls, restaurants, and entertainment establishments, which create a unique atmosphere for living. All of this has an attractive effect on buyers of premium real estate and contributes to price growth.
Thus, the combination of high demand, unique opportunities, and an attractive atmosphere makes Dubai the leader in this ranking.