Real Estate: Luxury property prices falling in Monaco, London and Geneva

According to the latest Prime Global Cities Index from Knight Frank, global luxury house prices are continuing on a steady upwards trajectory, but that’s not the case in Monaco. 

The figures from Knight Frank’s Q3 2023 Prime Global Cities Index have just been announced, and while the majority of the locations featured in the report have noted growth – significant growth in some cases – the Principality of Monaco has found itself in the company of around a third of the 46 cities listed to report falling property prices. 

According to the report, “average annual prices rose 2.1% across the 46 markets covered by the Knight Frank Prime Global Cities Index in the 12-month period to September”, with 67% of locations recording annual rise in luxury house prices.  

Manila came out top, with a staggering 21.2% 12-month change, beating the usual top spot holder of Dubai, which reported 15.9% of growth in the same period.  

Prices dipping in Monaco

The figures for Monaco, however, suggest that house prices in the Principality are falling, albeit by just 0.8%. 

Other nearby prime locations to experience similar contractions are Geneva, with a 1.3% fall over 12 months, and London, with a 1.7% decrease.  

In the US, Los Angeles’ house prices dipped by 1.9%, New York’s by 4% and San Francisco’s by 9.7%, the most significant price drop on the list. 

On the other side of the world, Australia’s big cities performed well across the board, while New Zealand’s Auckland and Wellington both reported price falls of 2.6% and 4.8% respectively.  

Almost every Asian market featured in the Prime Global Cities Index returned house price rises, except from Singapore, Hong Kong and Bangkok. 

Resilient yet fragile

Generally, however, “prime housing markets are proving resilient despite higher interest rates”, as explained by Liam Bailey, Global Head of Research at Knight Frank.  

Still, his appraisal of the situation comes with a warning that “the revival in demand is fragile and could be pushed off course if inflation surprises on the upside”. 

“The improvement in average annual house price growth will be welcomed by prime market homeowners, but shouldn’t be overstated,” he says. “Higher rates mean we have moved into a world of lower asset price growth – and investors will need to work harder to identify opportunities for outperformance to secure target returns.” 


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Photo source: Viktor Hesse, Unsplash