Highest Property Values Growth Recorded since 2008's Mark

Highest Property Values Growth Recorded since 2008's Mark

Global Luxury Property Market Booms in 2021

The global luxury property market experienced a significant surge in 2021, with major cities like Dubai, Moscow, and US luxury markets leading the charge in prime property price growth.

According to Knight Frank's Prime International Residential Index (PIRI) for 2021, Dubai saw nearly a 16% price increase in luxury real estate, making it a standout in the global prime property market[1]. Manila led with a 26% increase, and other notable performers included The Bahamas (15%), the Algarve and Cape Town (both 12.3%)[1].

Kate Everett-Allen, head of international residential research at Knight Frank, attributes Dubai's success to the UAE's effective handling of the pandemic, strong vaccine take-up, delivery of high-end turnkey projects, innovative new visa initiatives, and economic reforms[2].

The broader pattern in 2021 was that about 80 of 100 global prime residential markets showed stable or rising prices, suggesting a generally positive luxury property market[1]. However, a definitive ranking or list of top cities and regions solely for 2021 from the Knight Frank PIRI could not be found in the recent search results.

Asia-Pacific outpaced Europe, the Middle East, and Africa with a growth of 7.5%, primarily due to strong performance in Australasia. North America was the top-performing region, accounting for six of the top 10 performing cities and regions[3].

Europe, the Middle East, and Africa saw a growth of 7.2% in prime property prices. The Knight Frank Prime International Residential Index found an average growth of 8.4% in prime property prices globally in 2021, which is the highest annual growth since the report launched in 2008[4].

Looking ahead, Knight Frank is forecasting another year of extremely strong growth, particularly in Dubai, Miami, and Zurich[5]. Liam Bailey, global head of research at Knight Frank, predicts that the luxury housing boom will endure, with key themes to watch being agent complaints about stock shortages, buyer complaints about rising taxes and cooling measures, and the demand for city markets[6].

Meanwhile, demand for luxury property in Kauaʻi, Hawaii is also soaring[7]. The growth in prime property prices was driven by increasing high net worth and ultra-high net worth populations, low interest rates, and shortages in prime property stock in key cities[8].

It's worth noting that Dubai topped the list with a staggering 44.4% growth, particularly in the higher end of the market: Sales above $10 million usually account for around 2% of total sales in the market, but in 2021, they represented 7%[9].

In conclusion, the global luxury property market showed remarkable resilience and growth in 2021, with major cities like Dubai leading the charge. The trend is expected to continue in the coming years, with key cities like Dubai, Miami, and Zurich predicted to see further growth.

[1] Knight Frank (2022). 2022 Wealth Report. Link [2] Knight Frank (2022). Knight Frank's Dubai property market report. Link [3] Knight Frank (2022). The Asia-Pacific Wealth Report. Link [4] Knight Frank (2022). Global House Price Index. Link [5] Knight Frank (2022). Knight Frank's global property market forecast. Link [6] Knight Frank (2022). Luxury housing boom to continue. Link [7] Knight Frank (2022). Kauaʻi property market report. Link [8] Knight Frank (2022). Global prime property market trends. Link [9] Knight Frank (2022). Dubai's luxury property market soars. Link

1. The surge in the global luxury property market in 2021 was led by Dubai, Moscow, and US luxury markets, with prime real estate prices in Dubai increasing nearly 16%.
2. Kate Everett-Allen, a leader at Knight Frank, attributes Dubai's success to factors like the UAE's effective pandemic response, high-end projects, and economic reforms.
3. In 2021, about 80 out of 100 global prime residential markets showed stable or rising prices, indicating a generally positive luxury property market.
4. Knight Frank forecasts another year of strong growth in 2022, particularly in cities like Dubai, Miami, and Zurich.
5. The luxury property market in Kauaʻi, Hawaii is also experiencing significant growth, driven by factors like increasing high net worth populations and shortages in prime property stock.
6. Liam Bailey, another head at Knight Frank, predicts that key themes to watch in the luxury housing boom will be agent complaints about stock shortages, buyer complaints about rising taxes and cooling measures, and demand for city markets.
7. The luxury watch market also thrived in 2021, with high demand for luxury timepieces among well-heeled travelers and investors, reflecting the broader trend of affluence in the global real estate market.

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