The resilience of prime residential markets was highlighted during the second half of 2020. Savills World Cities Prime Residential Index recorded an average increase of 0.8% for the cities in the index at a time when global GDP is recovering from the impact of Covid-19 and subsequent lockdowns. The prime residential forecasts for the 30 cities in Savills World Cities Prime Residential Index highlight the strength of prime residential property.
Average growth for the cities in the index is forecast at 1.6% for 2021. Sentiment is improving as the rollout of the Covid-19 vaccine begins in many countries and, despite the uncertainties which still linger, prime residential property is expected to remain an active market.
Many of the factors which helped drive the prime residential market in the second half of 2020 are expected to continue into 2021, including low stock levels in some locations and the desire for more space.
Historically low interest rates, which are expected to remain low for some time, also make the sector attractive for wealth preservation. These factors, and the sector’s strong fundamentals, mean positive price growth is expected in 19 cities, compared with nine that are expected to see small price falls.
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Source: Savills Research Impacts: World cities prime residential forecasts 2021