According to the latest “World Cities Prime Residential Index” report from Savills, prime residential markets worldwide continue to demonstrate resilience in the face of economic and geopolitical uncertainty. In the first half of 2025, rents recorded stronger growth than property values.

While the average value of prime properties increased by 0.7% across the 30 cities monitored, prime residential rents grew by 2%, reflecting investors’ growing preference for income-generating assets, as well as a shift in tenant behaviour in a context of high market volatility.
Tokyo leads the valuation index, with an 8.8% increase in the value of prime properties, driven by chronic supply shortages and resilient demand, both domestic and international. Forecasts point to continued growth between 6% and 7.9% in the second half.

Other cities such as Berlin, Dubai and Seoul recorded increases of over 5%, due to limited projects and strong demand. Lifestyle-oriented markets such as Amsterdam, Cape Town, Lisbon and Sydney also showed appreciation, supported by low stock levels and sustained international interest. This sustainable demand is expected to continue driving prices.
“Despite a slowdown compared to the 2.2% growth in 2024, property values remain positive, with 60% of cities recording gains in the first half of 2025,” comments Kelcie Sellers, Associate Director, Savills World Research.

Rita Bueri, Head of Residential Lisbon at Savills Portugal, states: “Lisbon remains one of the most attractive prime residential markets in Europe, combining quality of life, safety and a unique lifestyle that continues to appeal to both national and international buyers. Strong demand, combined with the scarcity of product in this segment, has supported price appreciation, which is now evolving more evenly after the very significant increases of recent years. This adjustment is healthy and contributes to the market’s maturity. We believe that demand for prime properties in Lisbon will remain robust, fuelled by increasingly demanding buyers and by international interest that places the city on the radar of leading global destinations.”

Savills foresees an average growth of 1.7% in the value of prime properties for the second half of 2025, with Cape Town, Seoul, Tokyo and Singapore leading the forecasts, with estimated increases between 6% and 7.9%.

Luxury residential property rents show growth in the first half of 2025

Prime residential rents rose in most of the markets analysed, demonstrating even greater resilience, with 23 of the 30 cities in the index recording increases in the first half of 2025, highlighting consistent global demand in key destinations.

Tokyo once again stands out, with rents rising 7.8% in the first six months of the year and 13.5% annually, driven by limited supply and high demand. Cape Town registered a strong increase of 6.5%, benefiting from the shortage of rental properties and market stability after the 2024 elections.

In Europe, although rental growth is more moderate, the trend is upward. The largest increases were observed in Berlin (6.3%), Amsterdam (2.6%), Rome (1.4%) and Lisbon (1.3%). Meanwhile, most Chinese cities recorded slight declines in rents, due to weak demand and high supply, with variations ranging from -0.2% in Beijing to -1.8% in Guangzhou.
“For the remainder of 2025, we expect average rental growth of around 1% in the cities we monitor, reflecting a global sentiment of cautious positivity,” comments Kelcie Sellers.