Anticipated by supply, demand, sales trends, and economic and social indicators, Knight Frank’s latest Prime Global Forecast outlines the estimated real estate market outlook for 2020. Drawing knowledge from this, real estate in Paris, Berlin and Miami can be expected to experience the largest price growth over the next year, compared to other top performing cities across the globe.
According to Knight Frank’s latest findings, expected to see a total price growth of 7% is one of the world’s most luxurious cities, Paris. Thanks to a steady economy and low-interest rates, Paris’ residential real estate sector is predicted to increase throughout 2020. With little new supply, the market is also expected to see an influx of buyers seeking to benefit from lowered mortgage rates and high demand from tenants for rental property. Additional market stimulation can also be anticipated by the construction of Europe’s largest project, the ‘Grand Paris Project’ and preparation for the Summer 2024 Olympics.
After years of regeneration, the German capital of Berlin has become one of the world’s top real estate markets and is predicted to maintain that title throughout 2020. Despite a possible rent cap, Berlin’s undeniable demand is expected to improve price growth by a total of 5% over the next year, According to Knight Frank. A strong economy, low unemployment rate, and high work-related immigration are just some factors contributing to Berlin’s popularity. Other aspects predicted to affect Berlin’s job market and increase real estate prices can include the completion of the Brandenburg Airport and the acquirement of Tesla’s new European factory. Though new housing is being built throughout the city to keep up with the increasing demand, it is estimated to have little effect on rising housing prices and demand.
Miami is also predicted to experience a 5% increase in their luxury real estate prices throughout 2020, but for different reasons then Berlin, as outlined in the Prime Global Forecast. While Americans from across the country are looking to avoid higher taxed states, Florida, which has comparingly low state and property taxes, is attracting high-end buyers from across the country. Florida is currently home to America’s highest number of luxury home sales, and in some areas like Fort Lauderdale, luxury home sales have increased by a staggering over 40%, as mentioned in a recent Mansion Global article. Over the next year, supply is expected to remain the same, with sales and demand going up.
By assessing prime price performance, property regulations, risks, and trends, the latest Prime Global Forecast report by Knight Frank aims to anticipate market trends and estimates return across the top-performing cities of the globe. Thanks to this report we can see that Paris, Berlin, and Miami’s real estate markets are predicted to be global leaders in price growth for 2020, offering intriguing investment opportunities over the next year.