In the annual Wealth Report, the international consulting company Knight Frank shared the latest data of their Prime International Residential Index 100 (PIRI 100).
Based on data from the world’s 100 largest real estate markets, the company reported that premium house prices rose by 8.4% in 2021. This is 2% higher than in 2020.
With a 13% increase in prices, American luxury real estate leads the world. The Asia-Pacific region ranks second, with prices rising by 7.5%. Markets in Europe, the Middle East, and Africa grew by only 7.2%.
However, housing prices continue to grow this year. The leaders will be three cities: Dubai, Miami, and Zurich. Prices for premium real estate will increase in these cities by 10-12%.
Dubai
Last year, PIRI 100 recorded a 44% rise in luxury property prices in Dubai. This significantly marked 2021, as it interrupted a seven-year period of continuous cheapening of this type of housing. However, overall prices are 30% lower than the historical figures of 2014.
Kate Everett-Allen, head of Foreign Housing Research at Knight Frank, explains: "The UAE has successfully coped with the pandemic, conducted effective nationwide vaccination, commissioned diverse high-end turnkey real estate on the market. They also reformed the economic sector and the visa regime. This was a step ahead of Dubai for an international buyer."
In Dubai, premium property transactions exceeded $10. This segment of the market is responsible for only 2% of the total real estate sector, but in 2021, luxury housing accounted for 7% of all transactions in the market.
