Luxury property prices in global cities continue to climb in early 2025, though the pace of growth remains modest and uneven across regions.
According to Knight Frank’s Prime Global Cities Index Q1 2025, average annual price growth across 45 leading cities was 2.8%, slightly down from 3.2% in Q4 2024. While the market has now seen eight consecutive quarters of positive growth, performance remains below the long-term trend of 5.3%.
Asia-Pacific and Middle East Lead the Recovery
The Asia-Pacific and Middle East regions continue to outperform, with Seoul topping the rankings at +18.4%, followed by Dubai (+16.4%) and Tokyo (+15.5%). Growth in these cities is driven by rising wealth, institutional investment, and sustained demand in the luxury segment.
Tokyo is also benefiting from a weaker yen and increased international buyer interest, while Dubai has stabilized after a sharp acceleration in recent years.
Europe Shows Mixed Signals
In Europe, results vary:
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Stockholm and Lisbon are seeing recovery.
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London (-1.3%) and Vienna (-0.1%) continue to lag.
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Paris posted slight growth at +0.7%.
While 72% of cities reported positive growth, global economic uncertainty and pending interest rate adjustments remain key factors influencing market sentiment.
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