Dubai: Luxury villa prices in Dubai are outstripping those of prime locations in London on the back of the emirate’s "safe haven" status and attention from high net worth individuals, according to a recent report.
The prices of villas in prime locations in Dubai increased 19.9 per cent—the second highest on the list of global cities — in the past year to September, according to the Prime Global Cities Index by property consultant Knight Frank. Meanwhile prime London prices rose by 10 per cent.
In the three months ending September, Dubai’s villa prices rose 2.9 per cent while prime London property prices increased 1.7 per cent, the study showed.
“Clearly, the tax changes [to the UK tax law] have slammed the brakes on both the domestic and investment market,” Naomi Heaton, chief executive of the residential investment group London Central Portfolio, said according to a Financial Times report.
Five cities recorded double-digit price growth in the year to September — Jakarta, Dubai, Miami, Nairobi and London, according to a table of annual and quarterly prices compiled by Knight Frank.
“Cities such as Dubai, Miami, Nairobi and London are increasingly considered investment hubs for high net-worth individuals in their wider regions. In the wake of the Arab Spring, Dubai has been seen as a relative safe haven for Mena buyers…” the report stated.
Jakarta was the strongest performer with 28.5 per cent increase in luxury villa prices in the past year to September, the study found.
The index tracks prime property prices across 26 cities.