Dubai and Abu Dhabi have been named as two of the world’s fast growing premium property markets, according to research by Knight Frank.
The UAE’s two largest cities took advantage of improved economic indicators and a more stable real estate market to feature in the top 10 fastest-growing property markets in the global real estate consultancy’s Prime International Residential Index (Piri). The findings were contained in its Wealth Report for 2014.
Dubai and Abu Dhabi property prices increased last year by 17 and 15 per cent respectively, putting the cities in seventh and eighth place in the global rankings.
Dubai’s property market fundamentals are more sound than they were in the run up to the collapse in prices in late 2008, said the report’s editor, Andrew Shirley.
“People are a lot more sensible in their pricing than before, and confidence is returning,” he said. “Dubai prices are still below their peak, so it’s doesn’t look like a bubble at the moment.”
Asian cities dominated the Piri rankings for 2014, with Indonesia and New Zealand home to the world’s four fastest-growing markets.
Jakarta took the top spot with a 37.5 per cent annual increase in prices, followed by Auckland with 28.8 per cent.
London remains the world’s most important city for wealthy individuals, followed by New York and Singapore, according to the report.
New York is forecast to overtake London as the most important city by that measure by 2024, as its share of the world’s ultra-wealthy rises and the city becomes increasingly important to Chinese, Russians and Europeans.
Dubai ranked first out of Knight Frank’s top five cities for wealthy individuals in the Middle East, followed by Istanbul, Abu Dhabi, Tel Aviv and Beirut.
“People originally referred to Dubai’s growth as a mirage, but it’s become an increasingly important hub between Europe and Asia,” said Mr Shirley. “People want to invest there because of its growing strategic importance.
Istanbul’s importance had increased amid increased instability in Egypt, said Mr Shirley.
jeverington@thenational.ae
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