Madrid and Barcelona are among the most affordable cities: the average price is six times lower than in Hong Kong
Luxury housing is experiencing a year of widespread price increases in practically the entire planet. According to a study by the real estate consultancy Savills, the m2 of high-end properties has increased by an average of 2.4% in the first half of the 30 largest cities in the world, with increases in 27 of them.
The general increase is, according to Savills, a sign of “the resilience of the international real estate market”, which has been driven “by optimism in the residential market, still relatively low interest rates and the attractiveness of prime residential property as investment”.
The most pronounced rises have been concentrated in the US. In Miami, for example, the median price has risen at a double-digit rate in just six months, as the city’s low taxes and high quality of life encouraged migration from other parts of the country.
In Los Angeles and San Francisco the increase exceeds 5%, while in New York the rebound in the price of prime real estate stands at 4.3%. Dubai (4.7%), Seoul (4%), Lisbon (3.7%), Cape Town (3.5%), Berlin (3.3%) and Milan (3%) complete the list. In these last two cases, the report explains, the prime residential markets have been “benefited by a diversified and attractive economic and cultural offer for a broad base of buyers.”
On the other side of the table, we find Shanghai (-0.9%), Sydney (-1.7%) and Hong Kong (-3%), which registered the only falls in the price of high-end housing in the first semester of the year. And they are precisely three of the cities with the highest price per m2 on the planet.
Hong Kong, in fact, is at the forefront of the international ranking in two variables: it is the city in which the price of luxury housing has fallen the most between January and June, registering a drop of 3%; and it is also the one with the highest price: 41,870 euros per m2. The amount far exceeds that registered in New York,the second city with the most expensive m2 (25,280 euros/m2).
The price of luxury housing in the world’s big cities
Tokyo (22,250 euros/m2) and Geneva (20,720 euros/m2) are also above the barrier of 20,000 euros/m2, after experiencing a rebound of somewhat less than 2% in both cases. The following cities where the m2 of a luxury home is higher are, in this order, Shanghai, London, Seoul, Sydney, San Francisco, Shenzhen, Los Angeles, Singapore, Paris and Milan, which exceed the global average of 14,175 euros /m2.
Already below this average are Beijing (14,160 euros/m2), Guangzhou (13,530 euros/m2), Rome (13,150 euros/m2), Miami (12,400 euros/m2), Hangzhou (11,490 euros/m2), Berlin (11,480 euros/m2), Bombay (10,800 euros/m2) and Athens (10,750 euros/m2).
In the remaining eight cities in the ranking, the price of high-end homes is already below the level of 10,000 euros. In Amsterdam and Lisbon, the average exceeds 9,000 euros, while in Bangkok it is 8,720 euros/m2.
Madrid and Barcelona are the next cities on the list, with 7,070 euros/m2 and 6,530 euros/m2, respectively, thus placing them among the five cities where luxury housing is more affordable. Prices are only lower in Dubai (€6,400/m2), Kuala Lumpur (€2,610/m2) and Cape Town (€2,420/m2).
More uploads until the end of the year
Savills also assures in the report that the ‘prime’ residential market will continue to be marked by price increases in the remainder of 2022, despite economic, financial and energy uncertainty. Specifically, the consultant estimates an increase of 2.2% in the second half, two tenths less than that experienced during the first half of the year.
“Although inflation and rising interest rates will affect buyers’ optimism, ‘prime’ residential properties are less reliant on financing and remain an attractive asset for wealth preservation and capital growth prospects,” Savills concludes.
Source: idealista.com
