Dubai leads a 25-city property price forecast for 2023 with price growth expected to reach 13.5% next year, according to a report by Knight Frank.

This compares to an average property price growth of just 2% next year for the cities in its Index. The cities of Miami and Los Angeles occupied the second and third spot after Dubai, however, the forecast rate has dropped in the past six months as recessionary fears have increased globally.

Fixed mortgage rates in the US have exceeded 7% and a mansion tax is being considered in Los Angeles for homes priced above $5m.

Residential values in Dubai’s prime areas, which include Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, jumped by 29% in the 12 months to the end of Q3 this year, according to the report, which added that the price rises can be attributed to a shortage of new supply and strong inflows of ultra-high-net-worth individuals who are targeting second homes in Dubai, especially from countries that are becoming increasingly unstable, like Russia, China, Turkey and Iran.