Luxury property shifts into lower gear – Q3 2024

City-based luxury property markets worldwide are experiencing a slower pace in price growth, as highlighted in Knight Frank’s Prime Global Cities Index Q3 2024. The report tracks 44 major cities, where over half have still seen price increases compared to last year. Prime residential prices grew by 2.9 per cent annually in the third quarter of 2024, below the 10-year average, showing a cooling trend in major cities, although areas such as Manila and Dubai are exceptions, with solid growth driven by strong economies and rising consumer confidence.

In Marbella, while total sales fell in 2023, the first half of 2024 saw a 13.92 per cent increase in transactions, indicating the strength and resilience of the market.

Key findings:

• Prime residential prices grew at an annual rate of 2.9% in the third quarter of 2024, marking the lowest growth this year and falling well below the 10-year average of 4.6%.
• Among the 44 cities tracked, a majority (29 out of 44) saw a prime residential price increase compared to last year.
• Manila continued to thrive, with remarkable growth of 4.6% over the past three months and an annual increase of 29.2%, driven by strong economic growth and rising consumer confidence.
• Dubai is transitioning to more sustainable growth patterns. Prime residential prices have steadily increased by 0.5% over the past quarter, resulting in a total price growth of 16.9% over the past year.

Liam Bailey, global head of research at Knight Frank, said: “The recent slowdown in global price growth reflects the need for additional stimulus through further rate cuts before prices can strengthen. We expect the anticipated wave of cuts into 2025 to support higher house price growth in the medium term.”

Read the full report Knight Frank Prime Global Cities Index Q3 2024

Pia Arrieta, 15 Nov 2024 - Intelligence - News