Dubai’s forecast prime price growth of between 6% and 7.9% in 2023, for example, is lower than the 12.4% growth it recorded in 2022. However, Singapore’s predicted prime capital value growth of between 6% and 7.9%, driven by a lack of supply at the top end of the market, is keeping pace with the 6.8% growth it recorded last year. Both cities will continue to benefit from sustained inflows of high-net-worth individuals, but are not immune to higher interest rates and wider economic headwinds. The regional hubs of Dubai and Singapore are forecast to lead global prime residential price growth in 2023. Despite this, it will remain the world’s most expensive prime residential market.ĭubai and Singapore, the strongest cities Global macro conditions and a weaker demand from mainland China will have a big impact on Hong Kong’s prime residential market, with falls of between -7.9% and -6% expected.
Nevertheless, growth of up to 3.9% is forecast in the five mainland Chinese cities we monitor, which is comparable to 2022 levels. Transaction volumes hit new lows last year and the developer debt and real estate financing clampdown, coupled with the economic slowdown, have hit sentiment. Southern Europe’s top performer in 2022, Milan, is expected to cement its position in 2023, with price growth of between 4% and 5.9%.Ĭhinese cities will have a difficult start to the year, as the country transitions away from its Zero Covid policy. Lisbon, a star performer in 2022, looks set to see continued but slower growth, as it attracts a broader base of international buyers in 2023.
Buoyant rental markets make these cities appealing to investors. Regulations have contributed to low levels of new supply, especially in Barcelona, where new prime projects are now struggling to get built. Low to modest levels of capital value growth is forecast in the southern European cities of Lisbon, Athens, Rome, Milan, Barcelona and Madrid, where prime property is particularly coveted in times of economic turmoil as a safe haven asset and inflation hedge.
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