Global Cities Shake Up

The Global Residential Cities Index increased by 4.3% in the 12 months to March, its highest annual rate of growth since Q3 2017.

Manila has again topped Knight Frank’s Global Residential Cities Index, with annual price inflation hitting 22% in Q1. Budapest maintained its position of the European price growth lead table, with average property values climbing by 16% in the year to March.

This latest market snapshot covers the period up to 31 March – when Covid-19 was at its peak in parts of Asia but had yet to take its toll on large parts of Europe, North or South America. The Knight Frank team is expecting transition volumes to hit harder than prices in most prime global hubs, with employment protection schemes and mortgage holidays in many advanced economies “likely to reduce the number of distressed sales and hence the likelihood of price falls.”

Overall, the index increased by 4.3% in the 12 months to March, its highest annual rate of growth since Q3 2017. Of the 150 cities tracked, 85% saw prices increase over the year.

Q1’s readings don’t show significant drop, but “we do expect the city rankings to look very different in six to 12 months’ time,” says KF, “with those markets that have been effective in containing the pandemic, and where lockdowns were short-lived, most likely to show more resilience.”