Cyprus remains on the global list as one of the top 100 luxury housing markets in the world
Cyprus remains on the global list as one of the top 100 luxury housing markets in the world, chosen by the wealthy for residence or investment, according to the latest index from Knight Frank and the 68-page survey published a few days ago.
New York retained its title as the world's top market for ultra-luxury homes last year, followed by London.
The competition between countries for which will attract the rich to buy real estate is very intense. Prices in Cyprus increased by 3.5% on an annual basis (cities are not detailed, as is done for other countries). It did record an annual increase in luxury home prices, but it is much smaller than the increases of other cities on the world map.
Of the top 100 real estate markets tracked by Knight Frank, 85 recorded a positive or stable price outlook in 2022. Dubai led the way with a stunning annual growth rate of 44.2%, boosted by visa incentives that have attracted many ultra-high net worth value buyers, writes Knight Frank. Other top markets that saw home prices rise were Aspen, up 27.6% year-over-year, Riyadh, the capital of Saudi Arabia, up 25% year-over-year, Tokyo up 22.8%, and Miami with 21.6%. It is worth noting that Athens registered an increase of 13%.
Markets that had some of the strongest growth during the pandemic recorded the biggest price declines in 2022, and included the New Zealand cities of Wellington (-24%) and Auckland (-19%), Stockholm (-8 %), Vancouver (-7%) and Seoul (-5%), according to the report.
The question is where luxury real estate prices will go. According to Knight Frank's global survey, prime prices are now expected to rise by an average of 2% in 2023, down only marginally from the 2.7% it forecast in mid-2022. Some cities, it is noted, will see the annual price growth to fall into single digits, while some others will see it move into negative territory. The global property market survey notes that annual price growth in the decade before Covid-19 was not spectacular but steady, averaging 1.6%. Core prices rose an average of 5.2% in 2022 and are now 35% above their pre-crisis lows.