Global Trends in the Luxury Real Estate Market
In the second quarter of 2025, the growth rate of luxury property prices in prestigious areas of major world cities noticeably slowed down. Experts note that this is linked to prolonged expectations of a key interest rate cut in leading economies. According to a recent study, the average price increase for premium housing was 2.3% from April to May, significantly lower than at the beginning of the year when growth reached 3.5%. This decline is explained by market participants’ uncertainty regarding the timing and scale of future changes in monetary policy. Over the past five years, the largest price jumps were recorded in Asian and Middle Eastern metropolises, with Tokyo, Dubai, and Seoul showing record results.
Situation in Europe: Madrid Takes the Lead
Amid a general slowdown in Europe, Madrid stood out for the highest annual increase in luxury real estate prices—6.4%. Swiss cities followed: Zurich with 5.4% and Geneva with 4.2%. In Germany, Berlin and Frankfurt led the way, both posting a 3.2% rise. Lisbon, Dublin, and Stockholm showed more modest results, while Paris, Monaco, and Bucharest saw virtually no change. Meanwhile, Vienna and London experienced price declines, a trend also noted in several cities outside Europe, including Sydney, Vancouver, Toronto, and Hong Kong.
Trends in Other Regions and Outlook
In Asia, Seoul led in growth rates, with prices increasing by 25.2% over the year. Tokyo and Dubai also saw significant gains — 16.3% and 15.8% respectively. In India, double-digit growth was recorded in Bangalore at 10.2%. In the United States, the highest increase was noted in Los Angeles at 3.9%, while prices in New York remained unchanged. In contrast, Canada saw declines in its largest cities. Analysts emphasize that the market’s further development will depend on central bank decisions regarding interest rates. Despite stabilizing inflation, credit conditions remain tight, which is restraining buyer activity. Experts do not expect a sharp acceleration in price growth in the coming months, although fundamental factors such as limited supply and capital accumulation continue to support the market.
