The value of luxury real estate in 30 major cities tracked by Savills increased by 2.2% in 2024 and will grow by 1.6% in 2025, according to a report by Savills World Research.
According to forecasts, the most significant increase will occur in Dubai, Sydney, Madrid, Lisbon, Barcelona and Cape Town - from 4 to 9.9%. Luxury real estate in Dubai rose in price by 6.8% in 2024 and will increase in price this year. The growth will reach from 8 to 9.9% .
Luxury properties are expected to increase in price in cities on the Iberian Peninsula over the course of the year, while in Madrid, Barcelona and Lisbon, the increase is projected to range from 4 to 5.9%. Spanish cities have already shown the largest growth in the cost of capital during 2024: 9.4% in Madrid and 8.6% in Barcelona.
Despite the economic turmoil of recent years, luxury housing markets have proved surprisingly resilient. Since 2024 has been dubbed "election year," 2025 looks set to be the year when these new governments begin making changes, from taxes to legislation to international relations, each of which could have an impact on luxury residential real estate markets," comments Kelsey Sellers, Deputy Directors of Savills World Research.Top 10 cities in terms of projected growth in the cost of luxury real estate:
- Dubai - from 8 to 9.9%
- Sydney - from 4 to 5.9%
- Madrid - from 4 to 5.9%
- Lisbon - from 4 to 5.9%
- Barcelona - from 4 to 5.9%
- Cape Town - from 4 to 5.9%
- Tokyo - from 2 to 3.9%
- Mumbai - from 2 to 3.9%
- Kuala Lumpur - from 2 to 3.9%
- Shanghai - from 2 to 3.9%
Source: Savills
