Only a few days ago, Dubai Chronicle informed that Dubai was announced as one of the hottest property markets for 2012. This trend is seems to be still relevant in 2013, since a new study again places the city among the best spots for real estate investment.
In its Prime Global Cities Index for Q1 2013, Knight Franks outlines the most popular property investment hubs for this year. Dubai is placed on the 4th spot surpassing cities like Shanghai, Los Angelis and Monaco. Dubai is also the only representative of the Gulf region in the ranking.
The report informs that real estate prices in the City of Gold registered an increase of 18.3% for just one-year period. In addition, 5.4% of them were accumulated only during the first quarter of 2013.
Knight Frank also found that there was an obvious difference between the performances of the regions included in the study. European cities take fewer top positions in the 2013 ranking compared to previous years. In contrast, North American and Asian cities are leading the list.
Another finding made by the study is that the price performance of luxury homes in the Middle East has marked the highest increase. Luxury property prices in the region have jumped with about 11% for the last 12 months. In comparison, those in North America and Asia Pacific witnessed a rise of around 8%. The situation on the European market is again not that bright. There, luxury homes’ price performance fell with over 2% from March 2012 to March 2013.
According to Knight Frank’s International Residential Research Coordinator Kate Everett-Allen, the price of the average prime property today is 21.3% higher than that registered in the second quarter of 2009. That was actually the period during which the Prime Global Cities Index of Knight Franks reached its lowest rates after the Lehman Brothers’ bankruptcy in 2008.
Here is the complete list of the top ten cities for real estate investment in 2013, as well as their price rise percentage over the last one year:
- Jakarta, Asia Pacific (23.10% rise)
- Bangkok, Asia Pacific (26.10% rise)
- Miami, North America (21.10% rise)
- Dubai , Middle East (18.30% rise)
- Shanghai, Asia Pacific (17.40% rise)
- St. Petersburg, Europe (13.10% rise)
- Los Angeles, North America (12.50% rise)
- Monaco, Europe (12.20% rise)
- Hong Kong, Asia Pacific (8.80% rise)
- Nairobi, Africa (8.40% rise)