![]() “It is unlikely we will see a large volume of distressed prime sales as in 2008,” explains the Knight Frank report put together by Kate Everett-Allen, head of research. Being a city in Australia certainly looks like one of them.Īssuming Knight Frank’s index is a fair reflection of the current state of prime global city house prices, why are high-end house prices in global cities not tanking with the rest of the economy? Globally famous Spanish cities like Barcelona, Seville, Palma and Valencia don’t make the cut, whilst Australia has six cities in the index, so I’m curious to know the criteria for inclusion in this index. Madrid is the only Spanish city included in Knight Frank’s Prime Global Cities Index. Stockholm was the best performing European city, up 4.4% annually, but down 3.3% in a quarter. The best performance in Q2 came from Manila in the Philippines, up 14.4% yoy, followed by Tokyo, up 8.6%. Whilst there were some signs of the virus dragging down prime real estate markets around the world, with the overall index up jus 0.9% yoy, its “lowest rate of growth in 11 years,” say KF, and -0.6% on a quarterly basis, the overall picture shows prime property to be surprisingly resilient in the face of the coronavirus pandemic.Īs far as European cities go, London was the worst performer in the 45-city index, down 5% yoy, and 3.7% quarterly, followed by Dublin on -3.8% and -0.6% respectively. “This is the first opportunity we have had to take the pulse of prime residential markets globally since the Covid-19 pandemic hit large parts of Europe and the Americas,” explains the report. Given the unprecedented economic situation the world is going through in the light of Covid-19, which has hit Spain particularly hard, and caused an 18.5% decline in Spanish GDP in Q2 (compared to an EU average of -11.9%), a less than 1% decline in prime property prices in Madrid sounds trivial in comparison. ![]() You can see the full raking in the table below. The latest quarterly house price index of global cities produced by international real estate firm Knight Frank shows Madrid in the red zone with house prices on the slide, but not as bad as other European cities like Dublin and London.Īt the end of Q2, high-end house prices in the Spanish capital were down 1.5% in a quarter, and 0.9% in a year, according to Knight Frank, using data from their global research network. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins. This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
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