Dubai is expected to lead the price growth in 2023 with a 13.5% annual appreciation, shows the latest report by property brokerage major Knight Frank. In a list of 25 global cities, India’s financial capital Mumbai is placed at the 10th spot along with Monaco, with annual property price growth in both cities expected at 3% in 2023.
In the rankings, London joins Seoul at the bottom of the rankings with prices set to dip 3% in 2023.
“Across the 25 cities tracked, we expect prime prices to rise by 2.0% on average in 2023, down from the 2.7% we predicted six months ago. Despite this slowdown, aggregate growth in 2023 would still be higher than that recorded in six of the last ten years across our prime residential markets,” says the report.
Of the 25 cities, 11 now expect to see weaker price growth in 2023 than predicted just six months ago, while the price forecast for ten cities remains unchanged.
The US cities of Miami and Los Angeles occupy second and joint third spot, respectively. European cities rank highly in 2023, occupying 6 of the top 10 rankings with Dublin, Lisbon, Madrid and Paris leading the way. Despite, or perhaps because of, the eurozone’s impending recession, safe haven capital flight looks set to bolster prime markets in the year ahead, says the report. Singapore is the only Asian city in the top 10 and one of the only four cities whose forecast has climbed in the past six months, it adds.
“2022 was due to be ‘the year of the cooling measure’ as governments looked to rein in phenomenal pandemic-induced price growth. Fast forward a year, and central banks are doing their job for them as an era of cheap debt comes to a close and buyer sentiment weakens,” the report adds.
