With prime residential prices growing at the fastest rate in the world last year, Dubai has once again topped the 2022 Global Premium International Residential Index 100 (PIRI 100), while ranking 16th among the most expensive luxury cities, underlining its attractiveness and affordability to the world's super-rich.

According to Knight Frank's Wealth Report 2023, the PIRI 100 values track changes in global luxury property prices, with Dubai's prime residential prices soaring 44.2 per cent in 2022, compared to a global average of 5.2 per cent year-on-year, cementing its position at the top of the PIRI 100.

Real estate experts say the feat underlines Dubai's enduring appeal as a global hub for ultra-high net worth individuals, underpinned by a series of investor reforms and visa incentives.

In the Wealth Report, which provides a fascinating breakdown of the size of prime property that US$1 million could buy in 2022, Dubai is ranked 16th with 105 square metres, while the Principality of Monaco, where one in three people are classed as millionaires, is ranked first as the most expensive city in the world, with US$1 million buying 17 square metres.

The 20 most expensive cities in the world include Hong Kong (21 sqm), New York (33 sqm), Singapore (34 sqm), London (34 sqm), Geneva (37 sqm), Los Angeles (39 sqm), Paris (43 sqm), Sydney (44 sqm). Shanghai (44 sqm), Beijing (58 sqm), Tokyo (60 sqm), Miami (64 sqm), Berlin (70 sqm), Melbourne (87 sqm), Dubai (105 sqm), Madrid (106 sqm), Mumbai (113 sqm), Cape Town (218 sqm) and São Paulo (231 sqm).

Eighty-five of the 100 markets tracked by PIRI recorded positive or flat price growth in 2022, says the report, which analyses the price performance of prime properties in 100 cities, sun and ski locations around the world. The Americas (7%) narrowly outperformed EMEA (6.5%) as the best performing region, with Asia Pacific trailing at 0.4%.

"Last year we called 2021 'anomalous'. It was a year characterised by significant price growth as the market reopened after Covid-19 and retaliatory spending was consolidated. After such a boom, you could understand that 2022 would mark a return to business as usual. Far from it. Leaving aside 2021, core price growth in 2022 is at its highest level (5.2%) since the global financial crisis," said Kate Everett-Allen, Partner, Residential Research, Knight Frank.

"Wealth preservation, capital flight from safe assets and supply constraints have played a role in driving prices up significantly, but it is this post-pandemic surge that continues to push prices up," Everett-Allen said.

This has increased their appetite to buy, with 17 per cent of ultra-high net worth individuals set to increase their portfolios in 2022, he said.

Mumbai's prime real estate market witnessed a 6.4 per cent price appreciation, which moved the city up to 37th place in the PIRI 100 in 2022, compared to 92nd place in 2021. Mumbai's prime properties are expected to witness a 3% appreciation in 2023, the report said.

Bangalore's prime properties appreciate by 3.0 per cent, taking the city's position from 91st in 2021 to 63rd in 2022. Delhi's prime real estate market appreciates by 1.2%, moving the ranking from 93rd to 77th in 2021, the report adds.