Global Luxury Real Estate Prices Grow 2.8% In First Quarter Of 2025

According to Knight Frank’s Prime Global Cities Index (PGCI) for Q1 2025, luxury real estate prices in prime cities across the globe remain steady despite economic uncertainties.

Of the 45 key global cities in the study, the average annual price growth was 2.8% for Q1 2025, which the report noted as the 8th quarter in a row of positive growth. However, this is a slight decrease compared to Q4 of 2024 at 3.2%, and below the long-run trend of a 5.3% growth rate. Additionally, Q1 of 2025 was the strongest increase since Q2 of 2024 with a price increase of 0.8% compared to the previous quarter. Overall, 72% of the cities in the study recorded an increase in annual price growth.

Of the prime cities included in the report, cities throughout Asia and the Middle East displayed the most growth in their luxury real estate markets. Seoul ranked the highest with a 18.4% increase in transactions year-over-year, and 2.3% compared to Q4 of 2024. Dubai ranked second with a 16.4% increase compared to the same time last year, and 3.6% compared to last quarter. Tokyo ranked third with a 15.5% increase year-over year, but only 0.3% since the previous quarter.

The report also notes that major Chinese hubs like Guangzhou and Beijing continue to face challenges in achieving positive growth. In Europe, results are mixed—markets such as Stockholm and Lisbon are seeing improvement, while cities like London and Vienna are experiencing slower growth or modest declines.

Other notable luxury real estate market growths outlined in the Knight Frank report include Auckland, which increased to 0.8% in Q1 2025 from -1.7% in Q4 of 2024.

“The resilience of prime global property prices is evident, particularly in Asia and parts of Europe. However, to unlock the next phase of growth, markets need the support of lower borrowing costs.” Liam Bailey, Knight Frank’s global head of research

Overall, while global luxury real estate markets are seeing continued price recovery in Q1 2025, stronger growth will likely depend on more consistent interest rate cuts according to the report. Slow easing inflation in many regions, ongoing shifts in monetary policy, currency fluctuations, and regulatory changes—such as new U.S. tariffs—are fueling economic uncertainty and increasing the risk of market instability ahead.

See the full Prime Global Cities Index by Knight Frank here.

View more Luxury Real Estate Reports on LuxuryRealty.com

SOURCES:
Knight Frank Prime Global Cities Index – Q1 2025
Knight Frank Global Super-Prime Intelligence – Q1 2025