The average prime residential price growth for the cities in the index is forecast at 1.6% for 2021, against the +0.5% seen in 2020. This growth varies by city
In Europe, Berlin is forecast to see the strongest price growth in the region in 2021. The German capital is expected to continue on an upward trajectory with high levels of demand that exceed supply. London’s prime market is expected to see a turnaround, with forecast growth underpinned by the value on offer compared to its peak in 2014.
Of the European cities in the index expected to see price falls over the coming year, none are forecast to see significant price declines. A slight softening of prices is, however, expected in Paris, Lisbon, Madrid and Rome. A combination of lower international demand and weaker economic prospects are slightly dampening the outlook in these cities.
Similar to 2020, cities in Asia Pacific are forecast to see some of the highest, as well as the lowest, growth in 2021. Seoul’s strong growth is expected to continue over the coming year, with the highest forecast growth out of the cities in the index. The market remains on an upward trend driven by high demand from historically low interest rates, strong economic performance, and short supply. Hong Kong is, conversely, expected to see the weakest growth in the region and one of the lowest overall. Prime values here are expected to continue adjusting from a high base driven by the changing political environment in the city.
In the US, as with many Western markets, the search for more space has been a pandemic-driven trend over 2020. This is expected to continue over the coming year, benefitting cities that offer space such as Los Angeles and Miami. Miami is forecast to see the strongest growth out of the US cities. The Floridian city has particularly attractive tax advantages. Should the rise in remote working continue, those who no longer need to stay in one location for work may find Miami appealing. The ongoing impact of the pandemic and oversupply means that New York has the lowest forecast for the US cities.
Read the articles within Savills Prime Index: World Cities below.