Knight Frank: The global wealthy keep driving luxury property values up in Manila, Dubai and other cities
Knight Frank ranked Manila as the most expensive market in the world, with an increase of 26 percent. Dubai came second at 15%, and Bahamas at 15%. Knight Frank, in its the Wealth Report, said that in 2023 luxury prices declined by 2% in New York City and London. These prices are now 8% and 17% lower than recent peaks.
Knight Frank’s Global Head of Research, Liam Bailey stated, “As wealth portfolios improved in 2023 affluent purchasers targeted residential properties on luxury markets worldwide.”
Kate Everett Allen noted, “despite the pandemic that was fueling this boom, it is likely to end up in tears with borrowing costs at 15-years-high levels”, there has been “a softer fall” for property prices.
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Commercial real-estate is in a worse downturn than residential property, as the growing trend of home working drives up vacancy and borrowing costs.
Knight Frank’s research shows that US investors have pulled back on their investment in global commercial real property, leading to a drop of 46 per cent.
The investment sector that was the most popular for the first-ever time was industrial and logistical, which beat offices. The office sector shrank in size from 25% to 22% by 2022.
Private investors in real estate, who were among the most active purchasers in 2023, will likely increase their buying in 2024 to take full advantage of a “dislocation in the market,” the London-based agent said. REUTERS
Knight Frank, a leading property consultancy, said that luxury residential prices will rise by 3.1 % in 2023. The increase is due to the double-digit price increases in Manila and Dubai which have offset the fall in New York City and London.
Last year, property markets saw a sharp drop in volumes due to an increase in borrowing fees, inflation and economic unrest. Knight Frank claims that it helped boost prices for luxury properties as well as the value of wealthy people’s portfolios.
