“Wealthy Investors Betting on Luxury Real Estate Would do Best
Putting Their Money in Miami or Dubai Next Year”
A ranking of 25 of the world’s top luxury real estate markets was recently done by real estate consultancy, Knight Frank.
Rankings
Dubai topped the list, with prices expected to increase 13.5% in 2023.
Miami ranked second, with prices expected to increase 5%.
Dublin, Lisbon and Los Angeles followed, with 4% expected increases.
New York ranked in the middle of the pack, at 13, with prices expected to increase 2%.
Seoul and London are expected to be the worst performers.
Why?
Dubai has seen a surge in wealthy residents over the past year, driven largely by Russians looking for a safe harbor for their wealth, yachts and real estate amidst Western sanctions over the war in Ukraine.
Miami also remains a popular haven for the wealthy, given its low tax rates and growing number of financial firms locating their headquarters or offices in South Florida.
Singapore is benefitting from wealth flight from China, as rich Chinese citizens move their money, and often their families, to avoid strict Covid lockdowns and a slowing economy. Singapore is the only Asian city in the top 10 and one of only four cities whose forecast has climbed in the past six months
Summary
Cash will be king across the 25 markets, as buyers willing to pay all-cash will be more attractive to sellers, Knight Frank said. Political and economic volatility in many countries will also lead to a flight to safety in real estate, “pushing buyers to mature and transparent luxury markets.” Even the strongest luxury markets are expected to cool next year, as interest rates rise and economies slow down.
Excerpts from msn.com
