Prime Global Cities Index: Nairobi Makes Knight Frank’s List As Only African City
In Nairobi, the percentage change in luxury residential prices was 3.5% over the past 12-months. The city recorded a 2.4 per cent change in six months from Q3 2021 to Q1 2022 and a 1.3 per cent change between Q4 2021 and Q1 2022. Nairobi is the only African city tracked in the index.
Knight Frank defines prime residential property as the most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value.
Tarquin Gross, Head of Residential Agency at Knight Frank Kenya, said: “This growth can be attributed to pent-up demand. After two years of the pandemic, as we entered Q4 2021, there was a sense of normalcy returning. I believe buyers’ sentiments to get on with life motivated their purchasing resumption plans. Also, with the pandemic seemingly behind us, we witnessed many expatriates returning to Kenya.”
The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across more than 45 cities worldwide using Knight Frank’s global research network.
In the Middle East, Dubai emerged as the city with the fastest rising prime prices in the period studied, with a 58.9 per cent change recorded in the 12 months and 23.2 per cent change in six months from the third quarter of 2021 to the first quarter of 2022.
North American cities: Miami City, Toronto, San Francisco, and Los Angeles came in second, third, fourth, and fifth positions.
According to Knight Frank’s research analysis, there has been a reduction in the price growth of prime properties since the start of the pandemic. However, on average prime cities continue to register 9 per cent in annual growth.
The report identified the biggest slowdowns over the last quarter in cities across the Asia Pacific as Wellington, Guangzhou, Shanghai, and Shenzhen saw their annual rates of growth slide by 17 per cent, 15per cent, 8 per cent, and 7 per cent, respectively between Q4 2021 and Q1 2022.
SOURCE- BUSINESS INSIDER AFRICA
