Manila Is the World's Top Luxury Real Estate Market

Manila Is the World's Top Luxury Real Estate Market, Says Report

Story by Currie Cator 
Esquire Philippines
10 June 2024

Isn't it ironic that the Philippines is becoming more appreciative of luxury properties when many Filipinos still do not have their own homes? However, as this report from global property consultant Knight Frank reveals, Manila has become the fastest-growing high-end real estate market in the world, unseating Dubai. 

Makati City daytime

Makati City nighttime

Manila recorded 26.3 percent of annual price gains in luxury residential properties last year, the highest of all 100 markets analyzed in the report. Dubai, previously the frontrunner, slipped to second place, with a price growth of 15.9 percent. The Bahamas followed with 15 percent; while the Algarve in Portugal and Cape Town in South Africa saw prices jumping by 12.3 percent, rounding up the top five.

Overall, luxury residential markets still came out a bit stronger than expected, even while facing significant headwinds like the nonstop interest rate hikes and the rising living costs globally. Across the 100 markets tracked by Knight Frank, 80 recorded flat or positive annual growth in 2023, with luxury prices going up by 3.1 percent on average. This was regarded as "a solid gain."

"Stock markets were heading for more pain; inflation was veering out of control; and the pandemic-fueled property boom was set to end in tears, as borrowing costs hit 15-year highs in some markets," Kate Everett-Allen, head of international residential and country research at Knight Frank, said in the report. "However, that never happened. We’ve seen a much softer landing in terms of price performance around the world."

The Asia-Pacific region emerged as the strongest-performing region across the globe, with annual luxury prices increasing by 3.8 percent. Joining Manila in the top five markets with rapidly growing price gains are Mumbai, Shanghai, Seoul, and Auckland. According to the report, the Asia-Pacific may be seeing more wealth than any other region in the years leading to 2028, with Chinese investors and the Japanese real estate at the forefront.

Knight Frank, headquartered in London, prides itself as one of the world's leading independent real estate consultancies. Through its yearly wealth report, it provides insights on prime property markets, global wealth distribution, threats and opportunities for wealth, commercial property investments, and luxury spending trends.