Asian capital dethrones Dubai as world's fastest growing luxury real estate market

Manila, the capital of the Philippines, has left everyone surprised by being titled the city with the most luxury property growth, dethroning the United Arab Emirates' blingy metropolitan, Dubai.

According to Knight Frank's latest Wealth Report, as reported by the New York Post, Mansion Global has revealed that last year Manila was the world's fastest-growing high-end real estate market.

With a 26.3% increase in yearly prices in luxury real estate, the capital of the Philippines — widely regarded as the densest city on Earth — surpassed the opulent Middle Eastern city, which stood first in Knight Frank's previous reports.

With a 16% price growth, Dubai came in second, securing the silver position, and the Bahamas came in third with a 15% price growth, clinching the bronze position.

The far-southern and popular tourist destination in Portugal, the Algarve, saw 12.3% growth, ranking it fourth, with Cape Town coming in fifth, respectively.

Meanwhile, the cost of luxury real estate dropped in London and New York.

The report generally carried positive reviews for the luxury residential market, which managed to come out on top even while facing significant headwinds from a global increase in the cost of living and heightened interest rates, Mansion Global noted.

According to Knight Frank's data, the commercial sector also had a less fortunate year, with worldwide real estate investment falling 46% to $698 billion in 2016. The investigation concluded that the work-from-home trend that was sparked by the pandemic was mostly to blame.