Nairobi is the only city in Africa that made the top 45 global cities that posted growth in the last year, the latest Prime Global Cities Index by Knight Frank has revealed.
Ranking 32nd, Kenya’s capital posted a 3.5 percent change in growth in the period from 2021 first quarter to 2022 first quarter. The city recorded a 2.4 percent change in six months from Q3 2021 to Q1 2022, and a 1.3 percent change between Q4 2021 and Q1 2022.
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.”
Dubai in the Middle East is the city with the fastest rising prime prices in the period studied with a 58.9 percent change recorded in the 12 months, and 23.2 percent change in six months from third quarter of 2021 to first quarter of 2022.
North American cities take the next four positions, with Miami City taking second position and Toronto in third place. San Francisco and Los Angeles complete the first five positions.
The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 45 cities in the world using data from the Knight Frank research network.
The report indicates a slowing down in the price growth of prime properties since the start of the pandemic, though on average prime cities continue to register 9 percent in annual growth.
According to the report, the biggest slowdowns over the last quarter were across the Asia Pacific.
Wellington, Guangzhou, Shanghai, and Shenzhen saw their annual rates of growth slide by 17 percent, 15 percent, 8 percent, and 7 percent respectively between Q4 2021 and Q1 2022.