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Luxurious House Costs Are Rising in These European Cities


Lisbon was home to the fastest growing luxury-home prices in the first half of this year, according to a report Monday from Savills. 

With gains of 4.2% in the six months through June, the Portuguese capital bested the performance of any of the other 29 prime property markets globally analyzed by the property firm. 

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Cities in southern Europe and the Middle East saw their high-end home sectors perform best, with Lisbon followed by Amsterdam, Madrid and Athens, which all logged capital value increases above 3% over the same time. Dubai rounded out the top five with growth of 2.9%. 

In southern Europe in particular, prime prices are being driven by a lack of supply, and American buyers have become a “key prospective buyer base,” Savills said, “thanks to a comparatively strong dollar and a growing interest in the lifestyle on offer.”

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In the U.S., meanwhile, persistently high interest rates have impacted demand across the. housing market, and as a result, prime residential prices have fallen in three of the four U.S. cities monitored in the report, with only San Francisco seeing positive growth of 0.7% for the first half of the year. 

Los Angeles ranked at the bottom of the list, with luxury prices falling roughly 4%.

Across all 30 cities analyzed by Savills, prime residential property prices “remained resilient over the first half of 2024,” recording an average growth of 0.8% and outperforming the 0.6% growth predicted for the year as a whole, the report said.

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More than half (60%) of the cities recorded positive capital growth, “reflecting a level of relative confidence in the asset class,” according to Savills. 

Looking ahead, “we predict an average capital value growth of 0.5% for the second half of the year, which would bring total 2024 growth to 1.3%,” said Kelcie Sellers, associate director at Savills World Research in the report. 

“The ongoing supply-demand mismatch for high-end residential product is projected to fuel price growth in European cities such as Amsterdam, Lisbon and Barcelona, where 2% to 3.9% is forecast in the second half of 2024.”



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