Dubai topped the world’s cities in the “International Luxury Housing Index” in 2023, for the second year in a row, enhancing its attractiveness in attracting ultra-wealthy people from all over the world, as they consider it their second home, according to the data contained in the “Wealth Report 2023”. Issued yesterday by the British “Knight Frank” global real estate consultancy.
The report indicated that Dubai topped the index following recording this year the highest annual rate of increase in the capital value of luxury housing, as this percentage in Dubai reached 44.2%.
The report stated that Dubai was able to maintain the top spot in the index for the second year in a row, thanks to the relentless efforts it has made extensively in recent years to attract more ultra-wealthy, which included qualitative new programs to grant residence visas in Dubai to residents belonging to this category of the world’s wealthy. .
Regarding the expectations regarding the price performance of luxury real estate in the cities of the world during the current year, the report expects that Dubai will also remain in the lead with an increase in the capital value of 15%, while the cities that will follow Dubai will witness much lower rates of increase, as it will range from 3% to 5%.
The consolidation of Dubai’s position
Regarding Dubai’s position as a destination for the ultra-rich, the report expected that Dubai would continue to enhance this position, at an accelerated rate. The report stated that while the major British, European and American cities still attract large numbers of the world’s wealthy to reside there, it cannot be denied that Dubai is emerging as a vital and prominent center of wealth. The report added that Dubai in particular adopted a very practical approach in attracting wealthy residents, and made tremendous efforts to make legal amendments that enhance its ability to attract them, including extending the periods of residence granted to them, by including new categories of residence visas for these categories of wealthy people.
According to the “Knight Frank” report, an amount of one million dollars allows its owner to buy 105 square meters of luxury housing in Dubai, while the same amount allows its owner to buy only 34 square meters of the same category of housing in London, 33 square meters in New York, and only 21 square meters in New York. Hong Kong. The report added that this means that luxury housing in Dubai is still within the reach of wider groups of the ultra-rich, given that it is much lower than its counterparts in major international cities, such as London, New York, and Hong Kong, which enhances Dubai’s attractiveness to attract more wealthy people. .
Henry Vaughn, Research Director for the Middle East at Knight Frank, said: “Dubai has witnessed exceptional growth since the outbreak of the pandemic, supported by its position as a safe haven and a second residence for the wealthy, as well as the strong response of its government to the changes imposed by the pandemic. All of these factors together stimulated business confidence in Dubai.”
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Aspen, in the US state of Colorado, ranked second on the index with a rate of 27.6%, while Riyadh came third with a rate of 25%. Tokyo ranked fourth with an increase of 22.8%, while Miami came fifth with a rate of 21.6%. The rate of increase was less than 20% in all cities in centers from the sixth and below.