Prime Global Cities Index Q1 2025

Global Luxury Property Markets: Steady but Uneven Growth

Knight Frank’s Prime Global Cities Index Q1 2025 shows continued positive momentum in the world’s leading luxury markets, with an average annual price growth of 2.8%. While below the long-term average, prime property prices are rising for a second consecutive year, driven by demand in Asia and the Middle East.

Key findings :

• Prime residential prices across 45 global cities increased by 2.8% in the year to March 2025. Although slightly below Q4 2024’s 3.2%, this reflects a second year of positive growth following the dip in 2023.
• Seoul led the index with an 18.4% rise in annual prices, driven by increasing local wealth and growing institutional interest in luxury housing.
• Dubai’s market regained double-digit growth, stabilising after a sharp slowdown in 2024, while Tokyo continued to benefit from overseas demand and currency dynamics.
• Quarter-on-quarter growth reached 0.8%, the strongest since Q2 last year, pointing to cautious optimism as global markets await clearer signals on interest rate policies.
• Europe’s performance remains mixed, with some improvement in cities like Lisbon and Stockholm, while others such as London and Vienna lagged behind or saw minor declines.

Local Market Insight – Málaga Province & Marbella

According to newly released Q1 2025 data from the Spanish Land Registry, the average price of homes registered in the province of Málaga reached €2,869 per square metre, representing a 13.1% year-on-year increase. New build properties averaged €3,125 per square metre (+8.7% year-on-year), while resale homes reached €2,743 (+12.4%).

In Marbella, where official price data is not included in the Land Registry’s regular reports, the latest figures from TINSA(*) for Q1/2025 indicate an average property price of €3,257 per square metre, reflecting a 15.9% year-on-year increase. This growth highlights sustained demand and limited supply, particularly in prime areas such as the Golden Mile, driven by Marbella’s appeal as both a lifestyle destination and a long-term investment for international buyers.

(*) TINSA is one of Spain’s leading independent property valuation firms.

Read the full report: Knight Frank Prime Global Cities Index Q1 2025

Pia Arrieta, 08 May 2025 - News - Intelligence