Dubai and Abu Dhabi among fastest growing for luxury realty

March 19, 2014 4:13 pm

Staying true to the UAE’s ambitious master plan, Dubai and Abu Dhabi have been named as two of the world’s fastest growing premium property markets, according to research by Knight Frank.

The UAE’s two largest cities benefitted from improved economic indicators and a more stable real estate market to win their spot in the top 10 fastest-growing property markets in the global real estate consultancy’s Prime International Residential Index (Piri).

Dubai and Abu Dhabi property prices increased last year by 17 and 15 per cent respectively, putting the cities in seventh and eighth place in the global rankings.

According to Andrew Shirley, the report’s editor, Dubai’s property market fundamentals gained more stability than when they were in the run up to the collapse in prices in late 2008. “People are a lot more sensible in their pricing than before, and confidence is returning,” he said. “Dubai prices are still below their peak, so it doesn’t look like a bubble at the moment.”

Knight Frank’s new report explains that $1 million would get an investor all of 15sq m of Monaco’s costliest real estate, while the same outlay would result in 146sq m in Dubai.

On another parameter, the biggest opportunities globally for luxury goods purchases reside in Qatar, the UAE and Saudi Arabia, according to the findings. The three Gulf states are followed by, surprisingly enough, Ghana and then the US. Four African nations follow ­– Kenya, Nigeria, South Africa and Zimbabwe. Mexico is tenth.

London remains the world’s most important city for wealthy individuals, followed by New York and Singapore, according to the report. Asian cities dominated the Piri rankings for 2014, with Indonesia and New Zealand home to the world’s four fastest-growing markets.

Research found that New York is forecast to overtake London as the most important city for wealthy individuals by 2024, as its share of the world’s ultra-wealthy rises.

Dubai ranked first out of Knight Frank’s top five cities for wealthy individuals in the Middle East, followed by Istanbul, Abu Dhabi, Tel Aviv and Beirut.