Analysts predicted a decline in prices for luxury housing in the capitals of the world

The hardest hit Singapore, Hong Kong, Buenos Aires, Mumbai, and Vancouver, the experts said

Photo: Victoria Jones/TASS

In 16 out of 20 world capitals in the background of the pandemic COVID-19 and the government's measures to stimulate the economy, lower prices for luxury housing. This is reported by analysts of the international consulting company Knight Frank.

Of the cities expect a decrease in prices in the primary market, most likely will suffer or developing centers of business activity or city in which is observed a slight increase in prices at the end of 2019. More likely the cost of high-budget housing will be reduced in Singapore, Hong Kong, Buenos Aires, Mumbai and Vancouver. In these cities the prices will fall more than 5%, experts predict.

Lisbon, Monaco, Vienna and Shanghai — the four elite housing market, which is expected to increase prices up to 5% in the second half of 2020. The rest show neutral performance. At the same time in 2021 are expected to trend to recovery in many foreign markets, the revitalization deals with distress assets and the gradual growth of prices for individual zubrynka. London and Lisbon will be at the forefront in 2021, with a forecast growth above 5%. It is expected that a number of other European markets such as Berlin and Madrid, will be restored in the range of 0.1–4,9%, analysts say.

Moscow are not included in the world ranking. However, favourable development of the epidemiological situation, you can expect value growth in the luxury segment within 5% due to the low amount of new supply — for the first quarter on the Moscow market has not reached any new project. Positive dynamics contributes to pent-up demand, interest from buyers with a dollar savings for whom buying in ruble profitable field, as well as measures of governmental support of the industry, clarifies in a press release.

In April 2020, the number of deals with elite new buildings in Moscow decreased to the lowest level in the last ten years — over the past month there were 36 contracts of share participation. However, looking at similar statistics for the period of self-isolation in major Chinese cities, Europe and the UK, where demand for expensive housing has fallen almost to zero, for Moscow had initially predicted a more dramatic scenario.

For the year, the Russian capital climbed to seven lines in the world ranking changes in prices for elite housing, finishing in 16th position, with growth of 4.7 percent reported in March. Moscow divided his place from Delhi with the same index, ahead of Paris (+4,3) and Los Angeles (+1,3%).

Faith Lunkov


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