Knight Frank has updated the Prime Global Cities Index (PGCI) data for the second quarter of 2021. In 46 cities analyzed, the average price growth rate was 8.2%, which is a record figure since 2008.
At the end of the second quarter of 2021, the top 6 countries in terms of housing price growth looks like this:
• Toronto (+ 27.0%)
• Shanghai (+ 21.4%)
• Guangzhou (+ 19.8%)
• Seoul (+ 19.6%)
• Miami (+ 18.7%)
• Moscow (+ 17.6%)
The increase in housing prices caused by the pandemic is typical for all segments of real estate – on average, in 150 cities, the indicator increased by 7.3% per year. However, in the luxury real estate sector, the dynamics turned out to be the most significant.
Government regulations, interest rate hikes and the removal of stimulus measures are expected to help contain price increases in the second half of 2021. Additional measures to cool the property markets are likely to emerge, as countries are interested in increasing housing affordability.
The current situation is the new realities of the market, which are noted even in the highest segment. A number of properties show super-high growth, while interest in expensive offers remains, including among investors. Purchase of such housing is not only an indicator of status, but also allow to generate revenue. According to Knight Frank forecasts, Moscow will maintain high positions in the rating until the end of the year.
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