By Nikki De Guzman:
Luxury properties in Dubai saw the second highest global increase in prices last year, according to the latest Knight Frank Wealth Report.
The value of high-end properties in the emirate climbed 20 percent alongside the resort island of Bali, but were behind Indonesia’s capital Jakarta where prices soared 38.1 percent.
“The epitome of the global downturn between 2008 and 2009, the emirate rebounded in 2012 on the back of a resurgence in demand. This was aided by lower prices and underpinned by its location as a strategic hub, able to attract wealth from the Middle East, North Africa, the Indian subcontinent and central Asia,” the report noted.
Meanwhile, overseas interest for super prime property in Dubai has rebounded.
“Dubai has recovered some of its popularity with Russians, but competition from buyers from North Africa, Pakistan, India and Iran has been an important factor in helping to drive prices higher this year,” said Knight Frank.
Luxury home prices in Dubai are expected to continue rising as 40 percent of high-net-worth individuals (HNWIs) from the Middle East and Africa indicated that they would likely buy a property in Dubai.
"Globally, some 43 percent of clients are expected to show an increased interest in purchasing more city property this year," added the report.
"The trend looks likely to be led by clients based in the Middle East & Africa (67 percent) and Russia & CIS (50 percent)."
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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