Knight Frank predicts modest 1% increase; says Expo 2020 investment to drive demand higher
Prices of prime residential property in Dubai are forecast to see a modest 1 percent rise during 2018, according to consultants Knight Frank.
In a new research note, the real estate advisor said Dubai is expected to see a return to growth in 2018, after weaker performance during the recent market cycle.
Knight Frank said government investment in the economy and infrastructure ahead of Expo 2020 are helping to attract more employment, driving demand higher.
The 2018 Forecast report, which covered 13 cities, said Paris, a market that has struggled to see strong price growth in recent years, is set to lead global price growth next year (9 percent) benefiting from the improved economic outlook for the Eurozone.
It said the French capital is also back on the radar of global investors, in particular, those from the Middle East, the US and Europe.
According to forecasts, Singapore (5 percent) and Geneva (3 percent) could prove 2018’s most improved markets. Singapore’s luxury residential market, in the doldrums for several years, is expected to shift up a gear in 2018 as market sentiment improves.
Geneva, off-limits for non-resident buyers, offers safety, privacy and unrivalled schools putting it high on the list of wealthy families looking to relocate.
Hong Kong, with ongoing demand from mainland China is likely to post the strongest growth of major Asian urban markets during 2018 with a 7 percent rise by the year-end, said Knight Frank.
In central London, Knight Frank said it expects prime prices to rise marginally by 0.5 percent in 2018, with cumulative price growth over the next five years reaching 13.1 percent.
In North America, Los Angeles is likely to see a continuation of growth (3 percent next year) while the prime market in both New York and Miami are still seeing the impact of higher inventory volume and are likely to replicate London’s largely flat price performance in 2018.
Vancouver is the only city where prime residential prices are likely to soften in 2018.