Global prime residential prices set to increase next year
Global prime residential prices are set to improve in 2024, averaging 2% growth, excluding Dubai where prices continue to rise more steeply than other cities around the world.
However, prime central London is expected to be flat following an expected dip of 3% for 2023.
Latest research from Knight Frank shows Auckland and Mumbai leading the forecast for 2024, both tipped to see 5% growth over the 12-month period. Auckland is moving into recovery mode having seen prime prices dip by 17% since their peak in Q3 2021.
Global prime residential prices are set to improve in 2024, averaging 2% growth, excluding Dubai where prices continue to rise more steeply than other cities around the world.
However, prime central London is expected to be flat following an expected dip of 3% for 2023.
Latest research from Knight Frank shows Auckland and Mumbai leading the forecast for 2024, both tipped to see 5% growth over the 12-month period. Auckland is moving into recovery mode having seen prime prices dip by 17% since their peak in Q3 2021.
In Mumbai, improving GDP figures, the city’s relative value and investment in infrastructure are expected to push prices higher, while in Singapore (with 4% predicted growth) demand will continue to outpace supply.
Madrid (4%), Paris (3%) and Dublin (2.5%) are also expected to be top performers, with price growth bolstered by lack of luxury stock and relative economic resilience behind the positive outlook.
However, Berlin (-1%) and Edinburgh (-3%) are the weakest cities in the group of 25 cities in the 2024 forecast.
Dubai is not included in this list, but is leading the rankings for 2023 with annual price growth expected to be 14%, down from 44% last year.
Surprisingly, 20 of the 26 cities in the 2023 forecast still expect to see flat or positive price growth this year.
Tokyo, Paris, Madrid and Miami, all forecast to see 4% growth in 2023, complete the top five.
In Tokyo persistently low interest rates and strengthening overseas demand explain the positivity, while in Miami low taxes, relative value and Latin demand are the key factors. For Paris and Madrid a lack of prime stock is cushioning prices.
Forecasts for Geneva and Vancouver have improved the most in percentage point terms, while Berlin, Edinburgh, Dublin, Los Angeles, Zurich and Lisbon have deteriorated the most, although the declines remain relatively small at between 2% and 4%.
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