Manila, Philippines Experienced The Highest Home Price Increases in 2023
According to Knight Frank’s 2024 Wealth Report, despite higher interest rates throughout 2023, most luxury real estate markets across the globe were quick to recover with the Philippines capital, Manila, experiencing the largest annual price increases.
Out of the 100 markets tracked in Knight Frank’s Prime International Residential Index (PIRI), Manila experienced the largest annual price increase in its residential real estate market at 26.3%. Dubai, which had the highest price increases in 2022, experienced the second-largest price increase of 16% in 2023. The Bahamas experienced the third highest price increase across 2023 with a 15% price increase. Algarve and Cape Town both increased by 12.3%.
Luxury prices climbed 3.1% on average with 80 of the 100 markets analysed in the report experiencing an increase in their annual price growth or no negative change. However, sales have decreased as markets were impacted by higher interest rates. For example, luxury home sales in London, New York, Dubai, Singapore, Hong Kong and Sydney declined 37% on average in 2023 compared to 2022.
“As wealth portfolios recovered in 2023, affluent buyers targeted residential property in the world’s luxury markets,” said Liam Bailey, global head of research at Knight Frank.
Overall, the world region that experienced the largest average price increases was Asia-Pacific with an average home price increase of 3.8%, according to the report. The Americas experienced the next highest average price increase at 3.6%. Europe, the Middle East, and Africa home prices all increased by 2.6%.