Prices of luxury properties in Dubai rose by 48.8 per cent in the year to June, setting the pace in first place in a well-regarded international growth index.
The strong price growth meant Dubai maintained top position in the Knight Frank Prime Global Cities Index, a place it has now occupied for eight consecutive quarters.
Since hitting a pandemic low in the third quarter of 2020, luxury property prices in Dubai have soared by 225 per cent.
Average annual prices rose 1.5 per cent across the 46 markets covered by the Knight Frank Index in the 12 months to June.
That is markedly lower than the peak of 10.2 per cent seen in the last quarter of 2021, but is the strongest rate of growth since the third quarter of last year.
“Global housing markets are still under pressure from the shift to higher interest rates – but the latest results from the Knight Frank Prime Global Cities Index confirm that prices are being supported by strong underlying demand, weak supply following disruption to new-build projects during the pandemic, and an ongoing return of workers to cities," said Liam Bailey, global head of research at Knight Frank.
"As uncertainty over the direction of inflation appears to have reduced in recent months – price adjustments in many markets are likely to be less pronounced than was expected even three months ago.”
Over the three months to June, 57 per cent of cities in the index experienced price rises.
Tokyo and Manila took second and third place on the index at 26.2 per cent growth and 19.9 per cent respectively.
Stockholm was the city with the most improved performance, rising to 10th place in the second quarter, coming up from 41st in Q1.
Knight Frank noted that London, which is in 29th place, while continuing to record falling prices in the second quarter, had experienced strengthening demand over the past year.
"The number of potential buyers in London in July surpassed the five-year average by 24 per cent," Knight Frank said.
"This resilience isn't surprising, as around half of sales within Zone 1 [central London] typically involve cash transactions.
"Moreover, the market is being supported by the relatively weak pound benefitting foreign buyers, and the gradual return of overseas travel to pre-Covid levels."
West coast vs East coast
Farther down the rankings, New York recorded a 3.9 per cent fall in luxury property prices over the 12 months to June, thanks largely to rising borrowing costs and what Knight Frank called "evolving work patterns".
"While more office employees are returning to Manhattan, the demand for high-quality properties hasn't yet halted a decline in prices," the index said.
Indeed, Knight Frank found that there was a noticeable shift in demand for luxury properties in the US from the western regions to the east coast, with "affluent families moving away from California".
This is best illustrated by the 7.5 per cent growth in prices in Miami and the 11.1 per cent fall in prices in San Francisco over the 12 months to June.
Miami was fourth in the Knight Frank Index. San Francisco was 44th.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The National selections
Al Ain
5pm: Bolereau
5.30pm: Rich And Famous
6pm: Duc De Faust
6.30pm: Al Thoura
7pm: AF Arrab
7.30pm: Al Jazi
8pm: Futoon
Jebel Ali
1.45pm: AF Kal Noor
2.15pm: Galaxy Road
2.45pm: Dark Thunder
3.15pm: Inverleigh
3.45pm: Bawaasil
4.15pm: Initial
4.45pm: Tafaakhor
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5