Luxury property markets across 30 major financial hubs are anticipated to grow by an average of 1.6% in 2025, following a 2.2% increase in 2024, according to a recent forecast from Savills. However, the growth is far from uniform, with Dubai standing out as the frontrunner, projected to see a remarkable price increase of up to 10%.
Dubai: The Star Performer
Dubai is positioned as the world’s most promising luxury market for 2025. After experiencing a solid 6.4% growth in 2024, the city is expected to lead with double-digit price appreciation, cementing its status as a top destination for high-end real estate.
Other cities also forecasted to perform well include Madrid and Barcelona, where property values could rise by up to 5.9%. In 2024, Madrid experienced the most significant price increase among global cities, surging 9.4%, while Barcelona followed closely with an 8.6% uptick.
Regional Trends: Europe and Africa
In addition to Madrid and Barcelona, Lisbon, Sydney, and Cape Town are expected to see notable growth in 2025. These cities are attracting international investors with their combination of lifestyle appeal, economic stability, and high-quality luxury properties.
Asia: A Mixed Picture
Asia’s luxury property market presents a diverse outlook. Cities like Tokyo, Seoul, and Bangkok are predicted to experience continued growth in 2025, building on their robust performance last year. In 2024, luxury prices increased by 8.6% in Tokyo and 5.1% in Bangkok.
Conversely, mainland Chinese cities such as Shenzhen and Guangzhou saw price declines exceeding 4% in 2024, with further decreases expected this year. While Shanghai, Beijing, and Hangzhou may see some recovery, Hong Kong and Singapore are forecasted to face additional price drops.
The Americas: Stabilization and Recovery
In the United States, cities like Miami and New York, which experienced declining luxury property prices in 2024, are anticipated to rebound in 2025. Miami could see growth of up to 3.9%, recovering from a 1.2% decline last year, while New York’s luxury market is forecasted to rise by up to 1.9%.
However, Los Angeles presents a unique case. Although the city was initially included in Savills’s forecast as a recovery market, recent wildfires may disrupt its housing market dynamics, creating uncertainty around future trends.
London and Other Underperformers
London, which experienced flat growth in 2024, is projected to see a decline of up to 3.9% in 2025, making it one of the weakest performers alongside Hong Kong and Guangzhou.
Looking Ahead: Opportunities and Challenges in 2025
While the global luxury property market is expected to grow modestly in 2025, Dubai’s rapid price appreciation sets it apart as a leader in this space. Cities such as Madrid, Barcelona, and Tokyo also remain attractive options for investors, while markets in mainland China and parts of Europe may face challenges.
For further insights, visit Savills or explore the original report on Mansion Global.
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