Dubai, Abu Dhabi make top 10 of Prime Residential index

Dubai, Abu Dhabi make top 10 of Prime Residential indexImage Credit: Supplied

Dubai and Abu Dhabi are the only Middle East cities to make the top ten of the Prime International Residential Index (Piri). Dubai experienced 17 per cent growth last year, to add to its 20 per cent gain in 2012, while Abu Dhabi saw a 15 per cent growth.

Meanwhile, the booming Asian markets dominated the index, but some of the cities most affected by the 2008 downturn are now on the road to recovery, according to the research that appears in Knight Frank's Wealth Report.

Jakarta heads Piri with an annual growth of38 per cent last year, almost exactly the same as the rate seen in 2012. With Bali ranked number three in the table, Indonesia's key markets are continuing to outperform the rest.

In Dublin, which witnessed tentative increases in 2012, prices climbed 17.5 per cent last year.

''Inevitable debates have ensued as to whether Dubai and Dublin are on the cusp of another bubble. However in both cases average prices have yet to approach, let alone exceed, their pre-crisis highs,'' said Kate Everett-Allen, who headed the Piri analysis.

''Cash buyers are driving sales and regulation is tighter with some purchase and ownership costs higher than in 2008. This follows Ireland's introduction of a new local property tax in 2013 and transfer costs in Dubai doubling to 4 per cent.''

Madrid has joined Dublin as a key European market in recovery, with prices climbing 5 per cent. Munich, with a 10 per cent uplift, is emblematic of the surge in pricing in prime German city markets. This is partly being led by safe haven flows from investors in less secure Eurozone countries looking to insure against the possibility of a collapse in the euro.

Liam Bailey, Head of Global Research, said: ''The main theme that emerges from our analysis is a widespread strengthening of values. Last year prices fell in 39 per cent of locations, compared with almost half in 2012.''

Source: Property Weekly,


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