According to Knight Frank's latest Wealth Report, luxury property prices in Dubai rose the fastest in the world last year, thanks to an influx of millionaires who were attracted by the large number of expatriate-friendly visa measures.
Dubai led Knight Frank's Premium International Residential Index (PIRI 100) for the second year running, with the cost of prime residential property in the emirate rising by 44.2 per cent last year, the highest in the world.
Knight Frank said Dubai's position in the index cemented the city's position as "the second hub of global UNHWIs" and was helped by the UAE's numerous visa initiatives.
The index tracks house prices in 100 markets around the world. According to the report, price growth in Dubai was significantly higher than in other markets such as Aspen (which ranked second with 27.6 per cent price growth), Riyadh (25 per cent), Tokyo (22.8 per cent) and Miami (21.6 per cent).
The report says Dubai will grow "rapidly" as a wealth centre." Dubai has developed a very pragmatic approach to attracting wealthy residents - and has worked hard to correct an area of perceived weakness, namely length of stay," Knight Frank said.
"In the past, visa options were mostly short-term and work-related, but with the Golden Visa scheme, long-term residency is a possibility."
Since the start of the COVID-19 pandemic, high net worth individuals have become increasingly mobile and interested in buying property in locations that offer long-term residency opportunities. According to Knight Frank, in 2022 alone, 13% of UN HNWIs plan to apply for second citizenship.
In 2022, the average UHNWI will own 3.7 homes, up from 2.9 in the previous year. UHNWIs in the Middle East and Asia own the most properties, with averages of 5.3 and 3.9 respectively.
As well as Dubai, other markets, including 'sun or ski resorts', are attracting the attention of millionaires looking to invest in real estate.
Places like Provence, Tuscany, the French Alps and Barbados have been "hotspots for enquiries that have not diminished" in the last year, according to Mark Harvey, head of international sales at Knight Frank.
"The pandemic has focused people's attention on living for today. The transition to hybrid work, or for some, early retirement, has made their dream of a resort or upgrading an existing second home a reality," Harvey said.
For some wealthy buyers, the strengthening of the US dollar is a major factor, says Knight Frank, which notes that some buyers have seen "double-digit discounts" on properties located in the Eurozone over the last year as a result of the currency shift.
