Dubai Luxury Home Prices Surged 48% In Past Year
The prices of luxury homes in Dubai surged again in the past year, seeing Dubai maintain its top position in Knight Frank’s luxury property prices index for the eighth consecutive quarter. Prices of luxury homes in Dubai jumped by 48% in the 12 months to June of this year, reaching a total increase of 225% since the pandemic low in Q3 2020. Globally, average annual luxury homes prices rose 1.5% across the 46 markets covered by the index. This marked an improvement from the prior quarter with 57% of cities experiencing price increases. The surge comes on the back of a number of factors. Dubai’s property market has been immensely helped by strong economic activity, and government initiatives such as residency permits for retirees and remote workers. In addition, the relaxation of travel restrictions post-Covid-19 has driven investors to return to the Dubai property market, with much activity closed by financial groups as opposed to individuals. Notably, the largest driver is according to Knight Frank the influx of wealthy Russian buyers, who flocked to Dubai as a safe haven following the outbreak of the Russia-Ukraine war and Europe’s ban on Russian transactions.
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