International News Research

Dubai: the city with the fastest rising prime residential prices in the year to Q2 2022


The winds of change are blowing through global property markets, including the prime sector. Knight Frank’s Prime Global Cities Index Q2 2022, which tracks movement in prime residential prices across 45 cities worldwide, defined as the top 5% of the housing market in value terms, saw annual price growth decline from 10% in Q1 2022 to 7.5% in Q2 2022.

However, so far, the story is one of lower rates of growth, not falling prices. The number of cities registering a fall in prices in the year to Q2 2022 is the same as last quarter – just six.

But 19 of the cities tracked (42%) saw their rate of annual price growth decline between March and June 2022. Rising mortgage rates and a weakening global economic outlook are cooling some of the buoyancy of the last two years, but the slowdown will be felt most in lower price brackets and domestic-driven markets.

Auckland, Wellington, Toronto, and Stockholm registered some of the largest declines in annual price growth. Overall, Dubai leads the annual rankings with growth of 64.8%. Asia, an outlier during the pandemic with only muted growth, has not only seen its strongest performers, Seoul, and Tokyo, strengthen further but the luxury segment in some Chinese cities (Shenzhen, Beijing) and Indian markets (Mumbai) are showing signs of recovery.

In Europe, Berlin (12.6%), Dublin (10.2%), Edinburgh (11.2%) and Paris (8.9%) are out in front as the appeal of urban living strengthens and international travel resumes. The recovery of global powerhouses London (2.5%) and New York (7.2%) continues apace with both cities recording their strongest rate of price growth for seven and eight years respectively.