- Dubai remains the global number one location for luxury real estate in 2023.
- In the first half of 2023, luxury home prices rose significantly in cities in the Asia-Pacific region.
- Dubai saw the highest luxury real estate price increase, with an 11.2% rise.
The Savills World Cities Prime Residential Index for July 2023 has reported that luxury domestic real estate values rose by an average of 1.1% in the first half of the year, with Dubai seeing the highest global increase in luxury real estate prices.
Dubai has grown as a global hotspot for high net-worth individuals (HNWIs) in the past decade and is seen as a desirable location for the wealthy due to tax incentives, a stable economy and a focus on luxury infrastructure.
In the first half of the year, luxury home prices in the Asia-Pacific region saw the highest growth; Dubai took the lead among 30 cities, a 11.2% value rise. Out of the 13 Asia-Pacific cities in the index, 10 experienced an increase in luxury real estate prices.
According to Paul Tostevin, Director of Savills World Research, the company will continue to monitor the 30 cities with the highest populations of HNWIs that were analysed for this report.
Growth in prices saw a 0.8% boost in the second half of 2022, according to Savills, yet average capital values were 1.9% higher over the year up to June, which is the smallest expansion since December 2020.
Tostevin suggests that despite the slowdown in sales markets initially observed in the second half of last year, which has extended to 2023 due to increased global interest rates and a stagnant global economy, the prime residential price growth remains optimistic.
Out of the 11 cities surveyed, seven in Europe experienced increased luxury home prices during the first half of the year, while Miami was the only city in the US to experience a rise – it reported a 1.1% increase.
The rise in Dubai luxury real estate prices suggests that Dubai is a preferred location for wealthy internationals for both domestic and global business transfers.
The prices of luxury items in New York decreased by 0.7%, resulting in a 12% decline in luxury sales from 2022. Despite this, luxury sales exceeded 2019 numbers by 27%, indicating a return to pre-pandemic levels.
The Savills index shows that residential real estate price growth in Lisbon and Singapore, the two top-ranking cities last year, had a slower start at the beginning of this year. However, the report suggests that both cities are likely to experience an upturn in the upcoming half year.
Wealthy individuals looking to invest in Dubai’s real estate market should use modes of money transfer that are safe and secure.
HNWIs looking to purchase luxury homes overseas can compare foreign exchange rates by using our online money transfer comparison tool.
