The Wealth Report for 2014 was just released by Knight Frank, a property consultancy which aggressively builds reputation during the past few years by publishing and marketing Dubai property-related reports. The latest study offers an insight into the global trends in prime property and wealth. In addition, it takes a close look at some of today’s top luxury residential markets.
Dubai and Abu Dhabi are of course included in the report and the luxury property trends for the both cities are firmly underlined. This fact is not surprising, as during the past six months the rent caps were abolished in the both cities, which triggered sharp increase in rentals and property prices.
According to the 2014 Wealth Report, Dubai us one of the cities that have successfully recover from the financial crisis of 2008. Even though the city was one of the most negatively affected by the crisis, it is now showing great improvement along with cities like Madrid and Dublin. As a result, the UHNWI population in the Dubai is expected to increase by 26% by 2023, reaching 461. In Abu Dhabi, the growth of the UHNWIs is predicted to be even bigger. Even though UAE’s capital is currently home to only 161 ultra high net worth individuals, their number is expected to jump with 29% over the next decade.
However, the improved performance of the regional markets is not the single reason for this rise. According to the property consultancy, a big part of Russia’s UHNWI population will relocate to other locations, like Dubai, London and New York. These cities are said to become even more popular among Russia’s wealthiest.
Also, Dubai takes the 8th spot in the ranking of World’s Top Cities in 2014. Moreover, the report predicts that it will remain in the top 10 over the next 10 years at the least.
Unsurprisingly, both Dubai and Abu Dhabi witnessed some of the highest price shifts on the prime residential market in 2013. As a matter of fact, the two cities registered the largest price jump for the entire Middle East region. That ranked Dubai and Abu Dhabi on the 7th and 8th positions, respectively. Here is the complete list of the 10 cities where prime home prices increase the most last year:
- Jakarta (37.7%)
- Auckland (28.8%)
- Bali (22%)
- Christchurch (21.4%)
- Dublin (17.5%)
- Beijing (17.1%)
- Dubai (17%)
- Abu Dhabi (15%)
- Guangzhou (14.2%)
- Los Angeles (14%)
In addition, repeating the most recent CITI’s analysis of the risks ahead of Dubai’s property market, Knight Frank also highlights the same issue. Rapidly rising residential prices in the city lay the foundations for a new bubble in this UAE city, the property consultancy resonates.