More global cities have overtaken Dubai in the pace at which their luxury home values are gaining — the emirate is now placed at the 27th spot in the latest rankings issued by Knight Frank.
The consultancy rates San Francisco at the top, with a gain of 14.3% in the 12 months to March 15. In comparison, Dubai’s premium homes were down 1.1% during the period, Gulf News reported.
Developers and investors have seen it as an opportunity. In the last four weeks, developers such as Damac, Cayan, Palma Development and RP Global have had launches with price tags very much in the premium/super-premium space.
Developers selling super-premium can take heart from another detail put out by Knight Frank — according to a survey by the consultancy, 36% of high networth investors from the Middle East have plans to buy a home in the next 12 months.
“The amount of new projects in the Dubai market means properties will increasingly need to appeal to potential buyers’ sense of value,” said Paul Maisfield, CEO of MPM Properties. “That means a shift towards more affordable properties, particularly close to the Expo 2020 site, and an emphasis on incentives and unique selling points, especially in the luxury segment. We expect buyers to benefit from these trends.”