Luxury Home Prices Rose the Most in These Global Cities
Home prices across the globe continue to rise, and in some pockets of the world, cities are seeing a higher spike in the growth rate of luxury homes than others.
According to a new third-quarter report by Knight Frank, Turkey once again had two cities with the strongest annual growth over the last 12 months. In the top spot is Ankara, Turkey’s capital, where home prices shot up 102.7 percent compared to the same period last year. In second place was Istanbul, the country’s largest city, with annual gains of 77.6 percent.
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After Turkey, Dubai landed in the third position and recorded an annual price growth of 18 percent, while home prices soared 14 percent in Zagreb, the capital of Croatia. Rounding out the top five was Athens, the capital and the largest city in Greece, with a 12 percent increase in housing prices. The study attributed the gains to “low stock availability, above-inflation wage growth, elevated household savings, and limited new-build construction.” At the same time, European markets, including Stockholm, Bratislava, and Frankfurt, all had double-digit annual price declines compared to last year.
“Across our basket of world cities, average prices only experienced a decline on a quarterly basis in the final quarter of 2022, after which prices have risen by 2.7 percent,” notes the report. Across the 107 global cities that were analyzed in the study, there was a combined 2.3 percent average annual price growth across all the metros in Q3. For context, the median annual price growth was 1.6 percent in Q2. When it comes to the U.S., Philadelphia managed to crack the top 10 with 8.6 percent gains, while New York and Chicago followed close behind with home prices increasing 6.3 percent and 6 percent, respectively.
“Homeowners are breathing a sigh of relief as interest rates appear poised to decrease in 2024,” Liam Bailey, global head of research at Knight Frank, said in a press statement. “While this is positive news for those worried about transitioning to higher-rate mortgage deals, it’s important to acknowledge that interest rates are expected to stabilize at levels higher than those homebuyers grew accustomed to during the pandemic. With prices starting to rise again, the risk of potential future price declines lingers due to the ongoing stretched affordability.”
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