Knight Frank’s Global Prime Residential Forecast 2024

Last month Knight Frank released their Global Prime Residential Forecast for 2024.

This research outlines anticipated performance trends in the world’s top luxury housing markets for the upcoming year, with some of the key risks and opportunities that are likely to emerge.

The global property market has recently witnessed some notable trends, as detailed in Knight Frank’s latest Global Prime Residential Forecast.

Key Findings

• Positive Growth Predictions: Knight Frank’s revised forecasts project an average growth of 2.4% in prime residential prices for 2023 and a further 2.5% in 2024. This upward trend underscores the sector’s robustness amidst various economic challenges.

• Outperforming Asset Class: Over the past decade, prime residential properties have consistently outperformed most other asset types, highlighting their reliability as an investment.

• City-Specific Forecasts: Dubai is anticipated to lead in 2023 with a projected 14% growth in prime prices, while Auckland is expected to top the charts in 2024 with a 10% increase.

• Market Resilience: Despite economic uncertainties, a sense of cautious optimism prevails. Buyers are encouraged by the easing economic headwinds and constrained supply in several key cities.

• Global Economic Context: Despite the challenges posed by inflation and interest rate hikes, the global economy has shown resilience. The report notes varying approaches by central banks worldwide to these challenges, with a general trend of rising taxes targeting property and wealth.

• Cash Buyers on the Rise: There’s been an increase in cash purchases in the prime property sector, rising from 46% to 52% in the last six months.

• Election Impact: With 2024 set to be a major election year globally, housing is expected to become a key political issue. This could lead to more policy changes affecting the luxury property market. Conversely, easing tax and property regulations are seen as major opportunities.

• Policy and Tax Changes: Various regions have implemented significant policy and tax changes, impacting the market differently. For instance, Singapore has increased stamp duty for non-residents, while Los Angeles has introduced a new mansion tax.

Knight Frank’s analysis provides a comprehensive look into the global prime residential market, offering valuable insights for investors and market observers.

Read the full report here