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Globally, Luxury Home Prices Are Rebounding

Only one city in Knight Frank’s prime cities index saw home values fall more than 5% annually during the first quarter

Of the 44 markets in the index, the Philippines capital of Manila saw the largest annual price increase. Getty Images

Globally, luxury homes across 44 major cities saw an average annual price increase of 4.1% in the first quarter, according to Knight Frank’s latest Prime Global Cities Index.

That’s the strongest rate of price growth since the third quarter of 2022. Additionally, prices rose on a quarterly basis, increasing by 1.1%.

Across the 44 cities covered in the index, released Friday, 78% saw prices increase year over year during the first quarter. In the markets where prices dropped, the rate of decline is slowing—a year ago, nine markets saw annual price decreases of more than 5%, and this year, just one, Frankfurt, Germany, saw prices fall by that much.

“The rebound in global housing markets is continuing, as evidenced by our Prime Global Cities Index reaching 4.1% annual growth,” said Liam Bailey, global head of research at Knight Frank. “Rather than heralding a return to boom conditions, the index indicates that upward price pressures are stemming from relatively healthy demand, set against continued low supply volumes.”

The Philippines capital of Manila saw the largest annual price increase at 26.2%. Surging prices are largely because of strong economic performance—increasing consumer confidence and spending power—and investment in infrastructure, leading to a spike in demand, according to Knight Frank.

Tokyo followed with prices up 12.5%. The top five cities were rounded out by two Indian cities—Mumbai at 11.5%  and Delhi at 10.5%—and Perth, Australia, at 11.1%,

In the U.S., Los Angeles saw the largest increase in home prices at 8.3%. Miami was close behind with prices up 6.6% annually.

In addition to Frankfurt, the cities with the largest annual price decline were Berlin at 4.7%, Hong Kong at 2.8%, Stockholm at 2.6%, London at 2.4% and New York at 2.1%.

“The pivot in rates—when it comes—will encourage more vendors into the market, leading to a welcome return to liquidity in key global markets,” Bailey said.

Joyce Rey
Joyce Rey
Joyce Rey

Joyce Rey is one of the most respected names in luxury real estate worldwide, having represented some of the most significant properties in the world.



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