Latest news with #KnightFrank
Yahoo
8 hours ago
- Business
- Yahoo
Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
A villa in Signature Villas, Emirates Hills in Dubai (Picture: Knight Frank MENA) The Dubai residential market continued to break records in 2Q2025, sustaining momentum that has propelled property values in the emirate. According to research by Knight Frank, Dubai housing prices grew 3.4% q-o-q and 13.7% y-o-y to hit an average of AED1,809 psf ($629 psf) in 2Q2025, marking a new all-time high. Residential prices have now surged 21.6% above the previous market peak recorded in 2014. 'The sustained growth in prices - now approaching five consecutive years since the current cycle began in November 2020 - is a clear sign of a more stable and predictable market environment,' remarks Faisal Durrani, partner and head of research at Knight Frank Middle East and North Africa (MENA). The rise in prices coincides with quarterly sales volume hitting a new record of 51,000 last quarter. Off-plan sales accounted for nearly 70% of all transactions, which signals growing investor confidence in new Dubai developments, says Knight Frank. 'The market is increasingly being shaped by genuine buyers rather than speculators, with resale activity within 12 months of purchase now at just 4–5%, compared to 25% in 2008,' adds Will McKintosh, regional partner and head of residential at Knight Frank MENA. Read also: Dubai homes sold for over US$10 mil hit all-time high in 2Q2025: Knight Frank Over 94,000 homes in Dubai have now been sold since the start of the year, putting the market firmly on track to exceed the 169,000 deals recorded for the whole of 2024. Overall, total residential sales value clocked in at AED268 billion in 1H2025, 41% higher y-o-y. Within the Dubai property landscape, the villa segment has continued to lead the charge in price growth, outperforming apartments. Villa prices rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the segment's total price growth since 2014 to 49.3%. According to Durrani, momentum in the villa segment will likely keep growing. 'Just 20% of the planned housing supply through to the end of 2029 will fall in the villa category and with demand remaining centred on stand-alone family homes, the delta between villa and apartment price performance may well continue to widen,' he explains. Meanwhile, the prime residential segment has also logged robust growth. Knight Frank data shows that the average transacted price across ten key communities rose 16% over the past 12 months to hit AED3,850 psf. In addition, sales of Dubai homes priced above US$10 million ($12.79 million) reached AED9.5 billion in 2Q2025, the highest quarterly figure on record. The Dubai property market "has become more stable, more transparent and is underpinned by solid fundamentals," observes McKintosh. He adds: "This shift is drawing in more long-term investors and end-users and is helping to strengthen Dubai's position as one of the most attractive residential markets globally.' Knight Frank has maintained its forecast for Dubai housing price growth in 2025 at 8% for the mainstream market and 5% for the prime segment. Read also: Dubai remains top market for homes transacted for over US$10 mil: Knight Frank See Also: Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools New Launch Condo & Landed Property in Singapore (COMPLETE list & updates) Dubai homes sold for over US$10 mil hit all-time high in 2Q2025: Knight Frank Dubai remains top market for homes transacted for over US$10 mil: Knight Frank Dubai's real estate market on a hot streak En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc HDB Resale Flats Up For Sale, Affordable Units Available
CNBC
8 hours ago
- Business
- CNBC
CNBC's Inside India newsletter: Leaving, but not letting go — India's wealthy move abroad, but stay invested
Thirty-seven-year-old Indian national KM is three months away from calling Dubai his second home. The start-up founder — who recently amassed nearly 100 million Indian rupees ($1.16 million) in assets and crossed the high-net-worth threshold — is relocating from India's financial capital, Mumbai, to enjoy lower taxes and a better lifestyle. The start-up founder, who only wished to be identified by his initials due to privacy concerns, is among a sizable number of wealthy Indians looking to relocate from the South Asian powerhouse. While there is no fixed definition of who qualifies as "rich," a widely accepted threshold for individuals in the high-net-worth bracket is 50 to 250 million Indian rupees, while those whose wealth exceeds 250 million Indian rupees are considered ultra-high-net-worth. Affluent individuals are those with a net worth between 10 million and 50 million Indian rupees. India is home to 85,698 individuals with assets exceeding $10 million, according to a recent report from Knight Frank. That accounts for 3.7% of the global population with that net worth, more than the U.K.'s 2.4%, but less than China's 20.1%. With India's booming economy poised to overtake Japan to become the world's fourth largest, and a time of strong market returns, I was puzzled by KM's decision to relocate. KM told me that it was an "instinctive decision." "India's economy is booming and the large consumer pool is beneficial for my company. So, I will keep it as my business headquarters, but I feel Dubai is a better place to live in," he said. KM previously considered relocating to either Singapore, Portugal or Spain, but settled on Dubai because of its "tax-free structures, good education system, global diaspora and proximity to Mumbai." A recent survey by wealth management firm Kotak Private, conducted in association with consultancy EY, revealed that one in five of the 150 ultra-high-net-worth individuals polled plan to emigrate from India while retaining their Indian citizenship. Such a phenomenon comes as wealthy Indians are considering other residencies for strategic purposes, rather than a permanent relocation, Himanshu Kohli, co-founder of multi-family office Client Associates, told me. "Their decisions are typically driven by long-term generational thinking rather than dissatisfaction towards India," he said. "This isn't about abandoning India — it's about expanding one's footprint and ensuring families have global options in an increasingly interconnected world," Kohli noted, adding that many remain invested in India through start-ups and real estate. Besides the United Arab Emirates, several countries such as Singapore, Portugal, the U.K. and the U.S. have rolled out attractive initiatives to attract the wealthy. These include significantly lower tax rates, which are more favorable than India's. For instance, the UAE has zero taxes on personal income, capital gains and inheritance. By contrast, India employs a progressive income tax structure, where individuals earning around 1.2 million Indian rupees are slapped with a 15% tax, which increases with their income bracket. Meanwhile, the country has a 12.5% tax on most long-term capital gains. India's higher tax structure compared to other countries has led to a perception that the wealthy are emigrating to avoid taxes. That, however, "is not the whole story," Dhruba Jyoti Sengupta, CEO of Wrise Wealth Management Middle East, tells me. "India, still views wealth within domestic constraints," he said. By this, he means that India's policies focus on domestic wealth management rather than building strategies with global exposure. And so, Sengupta argues that India's wealthy "are not fleeing taxes. They're buying freedom, mobility, peace of mind and the ability to plan for the future. As the next generation is coming up, they want options." He also flagged regulatory challenges in wealth and legacy planning, as well as social concerns such as traffic congestion in metropolises, pollution, and infrastructure gaps, as other pressing issues prompting migration. India's wealth drain is not unique to the country. While the reasons for relocating may differ, the issue remains a perennial challenge, especially in developing economies, as it undermines investor confidence and long-term growth. The movement of wealth can affect job creation and innovation. A loss of tax revenues can also affect state coffers, while large capital outflows may even weaken the local currency. India is expected to lose about 3,500 millionaires this year, the Henley Private Migration Report forecasted. The estimates are based on individuals who reside in their new country for over six months and excluded those who acquire residency rights but don't relocate. Although India is among the top countries for millionaire emigration, the number of projected departures has declined in absolute terms over the past two years, data from Henley shows. This is thanks in large part to more people staying put to accumulate wealth and capture the country's exponential growth, Neil Bahal, founder of investment firm Negen Capital, told me. "India is facing strong consumption from its large population, so many millionaires want exposure to that. It's only those who are in their retirement phase or looking to expand their businesses overseas who are moving abroad," he noted. Bahal is also confident that India will see an increase in the return of its wealthy in the coming years, given the country's exponential growth. As it stands, many remain bullish on India and allocate around 60% to 65% of their investments domestically, hoping to reap multi-fold returns. Whether the emigration of wealthy Indians will slow or pick up steam is hard to predict. But what is critical for New Delhi is to make systemic shifts that make it an attractive place to live and invest in. For instance, political analyst Sanjay Baru highlighted the urgent need to deregulate and end the so-called "regulation raj," or the excessive bureaucratic control over businesses." The bureaucracy in India remains a challenge," Baru, who was a former spokesperson to the late Prime Minister Manmohan Singh, told CNBC's Inside India, adding that the country also needs to look at facilitating the ease of doing business. On a social level, Sunaina Kumar, a senior fellow at the think tank Observer Research Foundation, suggests that the government continue to invest in urban planning and build better infrastructure to reduce the "gridlock" in major cities. This would make them more livable and attractive to settle down in, she said. Kumar also suggested that the government explore ways to intentionally engage with the wealthy who remain in India, as well as those who have emigrated. This could be achieved by creating pathways to offer monetary contributions to philanthropic and social impact programs. Another option is for business owners to create jobs for Indians in entities both locally and abroad, Kumar said. While these improvements may help address some of the systemic issues in India, they will take time to execute. If successful, India may eventually become another wealth hub like the UAE or Switzerland — one that keeps its wealthy individuals or spurs the return of those like KM. "Wealth-friendly policies and better living standards will move the needle for India. There is no way I will want to stay away if those are fixed – after all, this is the place that has and will continue to generate returns on my wealth," KM said. Arun Kumar, previously a professor of economics at Jawaharlal Nehru University, said that the government's unemployment data understates the true scale of joblessness and masks structural distress in the economy. BNP Paribas analyst Santanu Chakrabarti revealed his top picks for Indian banks, adding that he expects banking margins to hit their lowest point in the first half of FY26, paving the way for a future recovery. JSW Steel's Joint Managing Director & CEO Jayant Acharya said he remains "hopeful" that the Indian government will take proactive measures to safeguard the country's domestic steel industry from potential dumping by China. India's growth forecast lowered. The Asian Development Bank cut its estimate of the country's economic expansion for FY26 — which runs from April 1, 2025, to March 31, 2026 — to 6.5% from the 6.7% expected in April. Jane Street is allowed to resume trading. The Securities and Exchange Board of India granted permission to the firm on Monday. The regulator's recent action has raised questions about the line between arbitrage and market manipulation. India's passport strength jumps in ranking. According to the Henley Passport Index, which measures the number of destinations holders can visit without a prior visa, the South Asian country's passport climbed to the 77th place from the 85th spot in the past six markets were trading in negative territory on Thursday. The benchmark Nifty 50 was down 0.62% while the BSE Sensex index had declined 0.7% as of 1:45 p.m. Indian Standard Time (4:15 a.m. ET). The benchmark 10-year Indian government bond yield had ticked up to trade at 6.324%.July 25: Bank loan and deposit growth data for the week ending July 11 July 28: Industrial output in June July 30: Coworking space operator Indiqube Spaces IPO, electronics refurbishing company GNG Electronics IPO July 31: Hotel operator Brigade Hotel Ventures IPO, Indian government fiscal deficit in June
Business Times
9 hours ago
- Business
- Business Times
Increasing affluence continues to fuel housing demand and prices, but economic uncertainty could test market: Knight Frank
[SINGAPORE] Interest rate cuts, growing affluence and low unemployment rates spell good news for Singapore's private residential market, but a cocktail of challenges could test the otherwise resilient sector. At a property market seminar organised by the Real Estate Developers' Association (Redas) on Thursday (Jul 24), Knight Frank research head Leonard Tay noted that geopolitical conflicts and ongoing trade tensions threaten to weigh on private housing sentiment this year. 'On the local front, it is more costly to own or keep a property, not only to buy,' said Tay, pointing to higher property tax, as well as increase in seller's stamp duty period and rates. Still, he reckoned that these may be blips in the market's long history of resilience. Between 1980 and 2024, private home prices in the city-state grew almost eight times with a compounded annual growth rate of 5.1 per cent. This came despite various regional and global downturns since the 1980s, from the Asian Financial Crisis in the late 1990s to the global financial crisis in 2008 and the latest Covid-19 pandemic in 2020. The market's resilience is especially evident in the last eight years, Tay said, with private home prices rising 55.3 per cent even as new cooling measures rolled out, on top of a pandemic and global shutdown. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Demand and price growth also continues to be fuelled by steadily improving economic affluence, said Tay. In 2024, the level of household liabilities was around 35 per cent of liquid assets – down from over 50 per cent in the 1990s. Household net worth – that is, liquid assets excluding the value of their homes and Central Provident Fund – has been on the rise over the past two decades and now stands at over S$1 trillion, versus under S$600 billion a decade ago. At the same time, the easing of interest rates means more liquidity for Singapore residents – who form the bulk of housing demand – to purchase homes, said Tay. 'This has brought those who are sitting on the sidelines… back in play.' The overall unemployment rate also remains relatively low, not increasing over 3.6 per cent in the past 30 years, providing a sustainable base for most households, he said. 'However, should Singapore slide into a recession that is accompanied by pay cuts, salary freezes and job losses, potential homebuyers will retreat to defensive positions, resulting in a fall in transaction volume,' said Tay. 'In such a scenario, there is every chance the government will provide some fiscal relief in the form of an off-budget stimulus package top prop up the economy, as in the past.' Growing prices vs affordability A separate study published by Knight Frank on the same day showed that although Singapore homes have grown much more expensive over the years, that was not to say that they were much less affordable. In the private housing sector, the study indicated that the median price of new homes was nearly 19 times that of household incomes in 2024, from being 11.8 times higher in 2019. Much of the price increase was due to pent-up demand during the pandemic, against limited supply. This was further compounded by construction delays and a lack of development land sales during the period, which led developers to bid aggressively for land in most of 2021 and 2022, said Knight Frank. Global inflation also meant higher construction costs, and therefore the elevated new home prices between 2021 and 2024, it said. The private resale market, on the other hand, saw a more consistent price-to-income ratio in the past 15 years – from a low of 9.8 in 2016, to a peak of 13.3 in 2012 and 2013. Most recently in 2024, the ratio was 12.1. Resale prices of private homes were also higher vis-a-vis household incomes over a decade ago, compared with 2024, Knight Frank noted. 'This strongly points to… new sales (being) the main cause of overall price growth in the past five years.' The modest changes in the resale market's price-to-income ratio indicates that 'there are possible affordable options in the resale market', it added. 'Nonetheless, holding and cost of property upkeep have increased in the post-pandemic period of inflation,' said the consultancy. 'Increases in property tax might have also led private homeowners to rationalise and right-size their real estate portfolios.' As for public housing, Knight Frank noted that the average resale price-to-income ratio has been steadily rising since 2019, from 3.8 to 4.6 in 2024. Still, when compared to that of non-landed private homes, Housing & Development Board (HDB) homes remain 'much more affordable', it said. 'Even so, HDB resale prices have increased and show signs of continuing to increase, remaining on the path of reaching the high of 5.1 last recorded in 2013.' Knight Frank's survey found housing prices and affordability were the overriding priorities for the vast majority of Singapore residents when buying a home. 'While price growth has slowed and been reined in, housing affordability remains a pressing issue, particularly for younger buyers or those looking to upgrade,' said Knight Frank.
Yahoo
11 hours ago
- Lifestyle
- Yahoo
YAHOO POLL: Is the key to a good life in Singapore emotional and mental well-being?
Career and material success used to be the key indicators of a good life in Singapore. However, it seems that times are changing, and while they are still indicators of a good life here, the definition of quality of life has shifted to non-material goods, with people prioritising well-being, mental health and work-life balance to cope better in a complex and fast-paced city. These are the results of a study by property consultancy Knight Frank Singapore and global market research firm Ipsos, which surveyed 1,000 Singapore residents earlier in 2025 to find out how expectations of the city-state's built environment are evolving. Other polls YAHOO POLL: Should Astronomer CEO Andy Byron have resigned? YAHOO POLL: Does cutting public holidays help boost the economy? YAHOO POLL: Do you neglect your health for your career? Respondents who were spread across all age groups from 18 and up, ranked emotional and mental well-being as the most important factor in quality of life, ahead of economic stability and job security. This was followed by financial stability, and then physical health and well-being. Though job security, inflation and the high cost of raising a child were listed as top concerns among respondents, they defined quality of life primarily through mental well-being and financial stability. The authors said, "These results call attention to a significant shift in how Singapore residents define quality of life (and) reflects a growing recognition that psychological resilience and emotional balance are central to daily life satisfaction, more important than the popular perception that Singapore residents are only absorbed in one-dimensional material gain." So, we want to hear from you – Do you think emotional and mental well-being is the key to a good life in Singapore? Related: Singapore youths suffering from depression, anxiety missed 24 days of school on average: Study More than half of workers in Singapore do not have trusted workplace relationships, one in ten don't feel respected or valued by colleagues: Report Singaporeans prioritising mental health concern over cancer, stress: Ipsos survey
New Straits Times
14 hours ago
- Business
- New Straits Times
KL prime office market holds steady in Q2, rents edge up
KUALA LUMPUR: Kuala Lumpur's prime office market held steady in the second quarter (Q2) of 2025, supported by demand for premium, transit-connected and environmental, social and governance (ESG)-compliant buildings, according to Knight Frank. In its latest Asia-Pacific Office Highlights report, it said prime office rents in the city centre averaged RM6.02 per square foot per month, up 2.6 per cent year-on-year and 0.2 per cent quarter-on-quarter, reflecting resilience in a selectively easing environment. The real estate consultancy said the market continues to favour occupiers, with landlords focused on retaining tenants and enhancing offerings to meet evolving workspace expectations. Senior executive director of office strategy and solutions Teh Young Khean said demand continues to gravitate towards Grade A buildings with modern specifications and within integrated developments. "The market continues on a slow and steady trajectory, with a 1.2 per cent improvement in vacancy rates and a 0.2 per cent increase in rental compared to Q2 2025," he said in a statement. In line with trends across Southeast Asia, leasing decisions are increasingly influenced by sustainability targets and portfolio consolidation strategies. Kuala Lumpur stands out for offering best-in-class office specifications at significantly lower occupancy costs than regional peers. Group managing director Keith Ooi said the city offers a compelling alternative for multinational firms re-evaluating their footprint. "As companies seek to optimise costs without sacrificing quality or ESG alignment, the city is well-positioned to meet those needs—at a fraction of the price of markets like Singapore or Hong Kong," he added. Vacancy levels, while currently elevated at 23.4 per cent, are showing signs of stabilisation. This reflects both the volume of legacy stock and the widening gap between older and newer assets in terms of tenant preference. Knight Frank said demand continues to concentrate in premium, well-connected developments. Across the Asia Pacific region, 18 out of 24 cities tracked by the firm recorded stable or rising prime office rents in Q2 2025. New supply added over 1.4 million square metre, but overall vacancy rates remained steady due to strong take-up in India and parts of Southeast Asia. Knight Frank said new completions are expected to add 6.8 per cent to total office stock in Kuala Lumpur this year, sustaining a tenant-favoured environment in the near term. However, the city's cost advantage, estimated at just US$26.70 per square foot annually, and continued infrastructure upgrades are expected to support its appeal to regional occupiers. While rental growth may remain moderate due to supply pressures, Knight Frank said the market is seeing a clear shift toward quality-driven leasing, with well-designed, ESG-ready offices in integrated hubs continuing to outperform.
