“With prime prices in Berlin and Frankfurt currently around €11,500 per square metre and €13,500 per square metre respectively they remain competitive by European standards,” says the Prime Global Cities Index report by Knight Frank
for the second quarter of 2019 (Q2-2019).
The Prime Global Cities Index, which tracks the movement in luxury residential prices across 46 cities, rose 1.4 per cent in the year-to-June 2019, up marginally from 1.3 per cent in March 2019 but still significantly lower than its four-year average of 3.8 per cent, the report’s findings suggest.
35 of the 46 cities tracked by the index registered price growth in the year to June 2019. Of the eleven that saw prices decline year-on-year, Istanbul (-9.9 per cent) and Vancouver (-13.6 per cent) were the weakest markets, the Knight Frank report says.
The road ahead for the luxury residential real estate, according to Knight Frank, remains challenging as policy-makers grapple with a slowdown in economic growth and resort to cutting interest rates.
“Much hinges on the next three months with stronger headwinds on the horizon we expect the Prime Global Cities Index to moderate further in the second half of 2019 before strengthening in 2020,” wrote Liam Bailey, global head of research in this co-authored report with Kate Everett-Allen, their international residential research head.