According to Knight Frank’s The Wealth Report 2023, the value of the Prime International Residential Index (PIRI 100) which tracks the movement in luxury house prices across the world increased by 5.2% YoY in 2022. The prime residential prices in Dubai accelerated 44.2% in 2022, maintaining its position at the top of Knight Frank’s PIRI 100 and cementing its status as a global hub for ultra-high-net-worth individuals (UHNWIs), assisted by numerous visa incentives.

Of the 100 markets tracked in PIRI, which analyses prime property price performances in 100 cities, sun and ski locations globally, 85 recorded positive or flat price growth in 2022. The Americas (7%) narrowly pipped Europe, the Middle East and Africa (6.5%) to the title of the top-performing region, with Asia-Pacific trailing on 0.4%.

Globally, Mumbai’s prime property market has witnessed a price appreciation of 6.4% which moves up the city to 37th position on the PIRI 100 in 2022 as opposed 92nd in 2021. Prime properties in Mumbai are expected to witness an appreciation of 3% in 2023.

Bengaluru’s prime property appreciation by 3% moved up the city’s position to 63rd in 2022 from 91st in 2021.

Delhi’s prime property market saw value appreciating by 1.2% which moved up the ranking to 77th from 93rd in 2021.

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Kate Everett-Allen, partner, residential research at Knight Frank said, “Last year we referred to 2021 as “an anomaly”; a year characterised by stellar price growth as markets reopened post-Covid-19, and revenge spending took hold. Off the back of such a boom, you might be forgiven for thinking 2022 would see a return to business as usual. Far from it. Omit 2021, the year 2022 posted the highest level of prime price growth on an annual basis (5.2%) since the global financial crisis.

Wealth preservation, safe-haven capital flight and supply constraints played their part in driving prime price growth, but it was the post-pandemic surge that continued to push prices higher. For the world’s wealthy, this increased their appetite to buy, with 17% of UHNWIs adding to their portfolios in 2022,” Kate added further.

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