Salty forecasts: the international price map
In a period of great uncertainty, it is necessary to have firm points. Even in real estate. Well, in today's column, we will try to create a sort of mapping of what will be the world situation in the panorama of luxury real estate. We have repeatedly stated that this segment usually remains unchanged.
Because the demand for any '' prime '' product does not undergo alterations, but remains constant. But in 2020 it was noted that, during the pandemic emergency, even this sector was not exempt from the crisis. This is why today we will try to understand what the prospects are in the luxury brick segment.
So if you're ready and armed with pen and paper, let's get started!
All our analysis is based on a very specific index, compiled by Savills: World Cities Prime Residential Index. This indicator was used to define the price trends of 30 international cities, known to be representative of a strong economy and a fairly solid social fabric. Well, it seems that the optimistic trail will finally emerge in the first months of 2021, leading to a not so disproportionate increase in prices on luxury properties. Before analyzing the cities in detail, let us remember that the increase or decrease in prices is not always synonymous with crisis. Indeed, often an increase in market value symbolizes an economic recovery, as the property will actually be recognized as worthy of this value. And therefore with a price consistent with the rest of the market. Returning to our column, analysts expect a price increase of 1.6% in luxury. But let's see together how the various cities of the globe will differ.
The biggest growth rate will be driven by Seoul, Berlin and Sydney. Three completely different realities but with one number in common: 6.8% more than in 2020! Which means, according to experts, a faster recovery in terms of luxury investments.
However, the Chinese Guangzhou is also emerging. Analysts expect a lot from this reality, considering the huge urbanization process inaugurated already in 2019, which has made it increasingly attractive in the eyes of potential investors. But not only. The strength that will allow Guangzhou to take off is also the proximity to Shenzen, which is configured as the third largest economy in China!
Not of secondary importance, the city of Miami and the like. Cities that offer breathtaking natural landscapes and that, for this reason, can afford to inflate the prices of their offers on the market. Again for the strong psychological need to invest in an environment that is not only luxurious but also spacious externally. Last but not least is the list of metropolises with stable or even falling prices in the real estate luxury landscape. Worthy of mention are Milan and Rome for Italy, Madrid, Barcelona, Lisbon, New York and Hong Kong. It is not excluded that this decrease in prices may also be positive for a rapid economic recovery. But we will wait a few months to say for sure. Until then, keep following us!
Because the demand for any '' prime '' product does not undergo alterations, but remains constant. But in 2020 it was noted that, during the pandemic emergency, even this sector was not exempt from the crisis. This is why today we will try to understand what the prospects are in the luxury brick segment.
So if you're ready and armed with pen and paper, let's get started!
All our analysis is based on a very specific index, compiled by Savills: World Cities Prime Residential Index. This indicator was used to define the price trends of 30 international cities, known to be representative of a strong economy and a fairly solid social fabric. Well, it seems that the optimistic trail will finally emerge in the first months of 2021, leading to a not so disproportionate increase in prices on luxury properties. Before analyzing the cities in detail, let us remember that the increase or decrease in prices is not always synonymous with crisis. Indeed, often an increase in market value symbolizes an economic recovery, as the property will actually be recognized as worthy of this value. And therefore with a price consistent with the rest of the market. Returning to our column, analysts expect a price increase of 1.6% in luxury. But let's see together how the various cities of the globe will differ.
The biggest growth rate will be driven by Seoul, Berlin and Sydney. Three completely different realities but with one number in common: 6.8% more than in 2020! Which means, according to experts, a faster recovery in terms of luxury investments.
However, the Chinese Guangzhou is also emerging. Analysts expect a lot from this reality, considering the huge urbanization process inaugurated already in 2019, which has made it increasingly attractive in the eyes of potential investors. But not only. The strength that will allow Guangzhou to take off is also the proximity to Shenzen, which is configured as the third largest economy in China!
Not of secondary importance, the city of Miami and the like. Cities that offer breathtaking natural landscapes and that, for this reason, can afford to inflate the prices of their offers on the market. Again for the strong psychological need to invest in an environment that is not only luxurious but also spacious externally. Last but not least is the list of metropolises with stable or even falling prices in the real estate luxury landscape. Worthy of mention are Milan and Rome for Italy, Madrid, Barcelona, Lisbon, New York and Hong Kong. It is not excluded that this decrease in prices may also be positive for a rapid economic recovery. But we will wait a few months to say for sure. Until then, keep following us!
