Knight Frank's extensive data indicates that luxury property prices have fallen globally for the first time since 2009.
The real estate company's Prime Global Cities Index, which tracks prices in 46 locations worldwide, fell 0.4% in the year to March 2023.
Somewhere in the range of 2010 and 2020, the development of this list was running at around 5%. Since then, the increases have been closer to double digits, peaking at 10.1% in the third quarter of 2021.
In any case, a lull in development has 'predominantly' been driven by higher loan costs following fixing of worldwide financial strategy, Knight Candid says.
Poor Wellington: Knight Frank reports that luxury property prices have plummeted over the past year, with Auckland and Christchurch joining the list of cities where prices have fallen annually. Even though two thirds of them are still increasing in value, the index has turned negative due to significant price drops in some areas.
Only eight cities reported prime property growth of more than 5%. Meanwhile, the prime market in New Zealand has experienced a significant decline.
Prices have dropped by 27% in Wellington, 17% in Auckland, and 15.3% in Christchurch over the past year, making them the three worst-performing cities in the world.
Prime values decreased by 13.4% in Toronto, 11.1% in Frankfurt, and 11% in Stockholm.
"reflects weakness in their broader national markets," Knight Frank asserts, "in these spots."
The Prime Global Cities Index has entered negative territory for the first time in 14 years. The Prime Global Cities Index has entered negative territory for the first time in 14 years. Dubai leads the pack, as it has seen a boom in the luxury market over the past year. Dubai leads the pack, with a booming luxury market in the past year. London came in at number 29, with 0.5% growth in the past year. With a 5.1% increase in prime values, Edinburgh ranks seventh.
Dubai has been the biggest winner in the last year, with values rising 44.2 percent in a year in the United Arab Emirates city.
In fact, prices have skyrocketed in Dubai since the pandemic and are up 149% since March 2020. It "reflects a market undergoing significant structural change," according to Knight Frank.
Dubai stands out clearly. Miami comes in second place thanks to its 11% growth in the luxury property market.
The top five are Zurich, Berlin, Singapore, and Singapore with growth of 9.4, 5.5%, and 5.5%, respectively.
Dubai Dream: The global prime property index drops for the first time since 2009. Since the pandemic, values are up 149% - undeniably more than some other city followed by Knight Forthright
Dubai dream: Values have increased by 149% since the pandemic, far more than any other city tracked by Knight Frank. A spokesperson for Knight Frank stated: Even though the Federal Reserve and other central banks may be getting closer to peak rates, prices will likely continue to fall in even prime housing markets for the next few quarters.
However, it is highly unlikely that we will experience a correction of the magnitude of the financial crisis, when this index fell 8.2% from peak to trough in 2009.
"There are early signs that some markets are getting better. Through the second half of 2022, 46% of markets saw quarterly price falls, but only 28% did in the first quarter of this year, which is the lowest number since the first quarter of 2021."
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