Prime property prices rising globally

Prime real estate markets in cities across the globe are on course to see price rises over the course of this year, according to international estate agents Astons.

David Sapsted

13 July 2021

The company, which also specialises in citizenship opportunities through investment, analysed prices in 18 global destinations last year as a basis for evaluating the likely growth in values during the course of 2021.Based on a property size of 43 square metres, values are forecast to increase by an average of 1.8 per cent this year, resulting in a global average price of £717,429.However, there are marked variations between the cities when it comes to both price rises and average values. Monaco, for instance - which, not surprisingly, is by far the most expensive destination surveyed - is expected to see a three per cent rise from last year's £2,072,027 average.Hong Kong and London are the only two other cities in the survey with primes prices averaging more than £1 million and both are expected to see above-average increases by year's end.The only destination predicted to see a fall in values is New York where last year's £914,129 average is expected to reduce by 2.5 per cent, although the city's figure will still be above the global average.Arthur Sarkisian, Astons' managing director, commented: “The global prime market has, of course, been impacted by ongoing travel restrictions preventing many international buyers from transacting as they may have otherwise."As a result, annual appreciation in real estate values is forecast to climb slightly across many cities, although some are expected to see a stronger performance than others."However, the very top end of any global property market performance is based very much around quality over quantity and so as the world does start to reopen, months of pandemic restrictions are sure to yield to increased demand as many look to regain lost time.”

The highest rate of growth is forecast to be a five per cent uplift in both Berlin and Sydney, while prices in Miami are expected to go up by 4.5 per cent and by four per cent in Shanghai.Prime property values (location; 2020 average; 2021 forecast; percentage difference):Sydney - £690,676; £725,037; 5.0%
Berlin - £444,006; £466,095; 5.0%
Miami - £365,652; £382,015; 4.5%
Shanghai - £621,608; £646,317; 4.0%
London - £1,002,594; £1,037,434; 3.5%
Monaco - £2,072,027; £2,134,187; 3.0%
Cape Town - £153,863; £158,441; 3.0%
Los Angeles - £706,373; £727,387; 3.0%
Mumbai - £293,211; £300,468; 2.5%
Geneva - £888,011; £905,550; 2.0%
Singapore - £863,344; £880,395; 2.0%
Paris - £740,010; £747,595; 1.0%
Melbourne - £357,246; £360,818; 1.0%
Tokyo - £535,869; £540,960; 1.0%
Beijing - £501,297; £506,059; 1.0%
Dubai - £188,366; £185,588; 1.5%
Hong Kong - £1,351,322; £1,317,877; 2.5%
New York - £914,129; £891,505; -2.5%
Average increase: £704,978 to £717,429

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