Dubai remains at the forefront of major cities worldwide regarding expected increases in residential property prices for 2023, despite a projected decrease in price growth rate compared to 2022, Invest-Gate reports.

According to the latest report released today by real estate company “Knight Frank,” the percentage increase in prices is expected to decrease to 14% from 44% in 2022.

The company stated that among the 26 cities monitored for housing price changes, Dubai still ranks first globally for the current year.

Of these cities, 20 are expected to continue experiencing steady growth or significant price increases during 2023. However, Dubai maintains a considerable lead over its closest competitors, Tokyo, Paris, Madrid, and Miami. The company anticipates that the percentage increase in property prices in these four cities will be at most 4% throughout 2023.

Among the 26 tracked cities, six are expected to perform better than anticipated six months ago. In comparison, nine cities are expected to maintain their current status, and the remaining eleven cities are projected to experience weaker growth.

Moreover, the forecasts for Geneva and Vancouver have improved in percentage, while Berlin, Edinburgh, Dublin, Los Angeles, Zurich, and Lisbon have shown more deterioration than others. However, the declines are still relatively small, ranging between 2% and 4%.

In a previous report issued by Knight Frank on the performance of the real estate market in major global cities during the first quarter of 2023, the company indicated that luxury property prices in Dubai had soared by 149% by the end of March, compared to their levels at the beginning of the COVID-19 pandemic in the first quarter of 2020. This period witnessed a significant increase in demand for luxury properties priced at $10 mn or more in the emirate.

Notably, in its analysis of the markets, Knight Frank suggests that the repercussions of high inflation and the global interest rate hike campaign have affected the volume of luxury property sales in major cities worldwide. However, luxury real estate remains unaffected by price fluctuations, possibly because it remains insulated from monetary policy effects. This is due to a significant percentage of buyers (46%) paying cash for the properties they purchase.