The World Property Journal’s Michael Gerrity reported that Knight Frank’s latest Prime Global Cities Index indicated that global luxury home prices increased only +1.4% this year to June 2019. This +1.4% increase in worldwide luxury home prices is significantly lower than the 4-year average of +3.8%, despite an effort by policy makers generating a wave of interest rate cuts in hopes of stimulating economic growth.

Knight Frank’s key findings in its latest Prime Global Cities Index included the following:

  • Berlin had the strongest rate of annual price growth of all cities included in the
  • 3 percentage points separate the strongest and weakest performing cities.
  • 78% of all Index cities registered a prime price increase in luxury homes over a 12-month period.
  • 76% (35 of 46) cities registered prime price growth in this year to June 2019.
  • Madrid and Paris (+5.2% and +5.0% annual growth respectively) had variations in price growth at neighborhood levels.
    • In Madrid, Chamber and outer non-prime districts were strong.
    • In Paris, the Left Bank (6th and 7th arrondisements) “paused” after price growths of +11% in 2017 and the 18th arrondisement continued its upward price trajectory.
  • China also had variations in price growth at neighborhood levels.
    • Beijing and Guangzhou showed increases of +4.5% and +2.7% respectively.
    • Hong Kong showed flat growth of 0.0% due to concerns over the trade war. 

Top 10 Cities in Terms of Global Cities Price Growth

  1. Berlin +12.7%
  2. Frankfurt +12.0%
  3. Moscow +9.5%
  4. Manila +6.2%
  5. Geneva +6.0%
  6. Madrid +5.2%
  7. Paris +5.0%
  8. Zurich +4.5%
  9. Beijing +4.5%
  10. Delhi +4.4%

Closer to home, luxury home price growth in Miami, San Francisco and Los Angeles increased +1.5%, +1.2% and +0.7% respectively.

Bottom 10 Cities in Terms of Global Cities Price Growth

  1. Vancouver -13.6%
  2. Istanbul -9.9%
  3. Auckland -7.5%
  4. Nairobi -6.7%
  5. Dubai -6.0%
  6. London -4.9%
  7. New York -3.7%
  8. Shanghai -3.5%
  9. Seoul -3.4%
  10. St. Petersburg -1.0%

Again closer to home, luxury home price growth in Los Angeles decreased -0.7%.