Prime Global Cities Index – Q2 2024

Global house price growth slows

Knight Frank's Prime Global Cities Index tracks luxury residential prices across key global cities quarterly. In Q2 2024, luxury property price growth slowed to 2.6%, down from 4.1% in Q1, reflecting growing affordability challenges. The decline began in late 2022 due to rising interest rates but saw a modest recovery mid-2023 driven by wage growth and limited supply. However, further rate cuts may be needed to sustain future price increases.

Key findings :

• Across the 44 cities tracked, annual price growth has slowed from the 4.1% seen in Q1 to 2.6% in Q2.
• The latest growth rate is well below the long-term average of 5.3%, reflecting the need for lower rates before growth can restart in earnest.
• Stockholm is the most improved market for annual growth in Q2 2024.
• Dubai registered a price growth of 124% from Q1 2020 to Q2 2024.
• 75% of markets are seeing positive annual price growth.

Liam Bailey, Knight Frank’s Global Head of Research said: “The slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing we have seen over the past few quarters is running out of steam. The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months.”

From a local perspective, some locations in the wider Costa del Sol area may have experience slower growth, in line with global trends in prime cities described above. However, in Marbella and the Golden Triangle (which includes the neighbouring towns of Estepona and Benahavís), prices in prime locations have remained resilient or even increased, driven by strong international demand, limited supply, and the area's unique market characteristics.

Read the full report Knight Frank Prime Global Cities Index Q2 2024

Pia Arrieta, 27 Aug 2024 - Intelligence - News