![]() ![]() Despite, or perhaps because of, the eurozone’s impending recession, safe haven capital flight looks set to bolster prime markets in the year ahead. The US cities of Miami and Los Angeles occupy second and joint third spot respectively, but the forecast rate of growth has dipped in the past six months as recessionary fears strengthen, fixed mortgage rates in the US have exceeded 7% and, in Los Angeles, a Mansion Tax is being considered for homes priced above US$5 million.Įuropean cities rank highly in 2023, occupying six of the top ten rankings with Dublin, Lisbon, Madrid and Paris leading the way. ![]() Still double-digit annual price growth, but at a more sustainable rate compared with the stellar performance witnessed over the past two years when the city’s relative affordability came into focus. ![]() Safe haven capital flight and tight supply in prime markets will cushion prices in some cities in 2023ĭubai leads our 25-city forecast for 2023 with price growth expected to reach 13.5%. Fifteen of the 25 cities – or 60% – still expect prime prices to increase in 2023, down from the 18 (72%) we listed six months ago. The short answer is not as much as one might have expected given the economic headlines. And the consensus view among most economists is that we aren’t in line for GFC 2.0.Īcross the 25 cities tracked, Knight Frank’s global research network now expects prime prices to rise by 2.0% on average in 2023, down from the 2.7% we predicted six months ago.ĭespite this slowdown, aggregate growth in 2023 would still be higher than that recorded in six of the last ten years across our prime residential markets. The transition from a seller’s to a buyer’s market is already underway across most prime residential markets.īut prime prices would need to dip by 30-40% in some cities for prices to return to their pre-pandemic levels of 2019. Homeowners are having to grapple with the unpredictability of soaring inflation, the rising cost of debt and higher taxes.Īlthough prime markets are more insulated to the fallout from higher mortgage costs, they’re not immune. Money is becoming more expensive, geopolitics more complex and China is no longer powering the world’s economy. Categories: Property Sector Residential Sales Publication The Wealth Report Home Topic Forecast World Regions GlobalĪfter two years in which the pandemic fuelled a surge in house prices in most global cities, the landscape is now shifting. ![]()
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