The world’s most expensive houses have fallen in value for the first time since the global financial crisis.
According to Knight Frank’s latest Prime Global Cites Index, which tracks prices in 46 leading prime markets, prices fell by 0.4% in the 12 months to the end of March this year. This marks a sharp reversal from a peak of 10.1% growth in the fourth quarter of 2021.
Annual prices are now falling in 16 of the 46 markets tracked. Two-thirds of markets are still seeing positive growth, with Dubai remaining a substantial outlier with annual growth of 44%.
However, the only other city to reach double digits was Miami, at 11%. Zurich at 9.4%, Berlin at 5.7% and Singapore at 5.5% complete the top five markets – pointing to the resilience of wealth and, in Berlin’s case, investment hubs.
But the large scale of price declines in the weakest markets pulled the overall index into negative territory.
New Zealand is home to many of the worst performers, with prices falling by more than 27% in Wellington, 17% in Auckland and 15.3% in Christchurch. Other weak performers include Stockholm, falling 11%, and Vancouver, down 9.4%.
London sits just above the cusp of negative territory, recording a 0.5% growth over 12 months, but a 0.9% fall over the past six months and a 0.2% decline over the quarter.
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