Knight Frank – Prime Global Cities Index, 2Q 2024

The Prime Global Cities Index (PGCI) tracks prime residential prices in 44 cities worldwide, showing only a 2.6% increase in the 12 months to June, down from 4.2% in the previous year. This slowdown is attributed to affordability limits being reached in many markets after a decline in growth due to rising interest rates in late 2022 and early 2023. The need for lower interest rates is highlighted as prices begin to decrease in some markets, with annual growth slowing from 4.1% in Q1 to 2.6% in Q2. Markets like Madrid and Dubai have seen significant declines in growth, while cities like Miami are climbing back up in rankings. Europe is showing signs of improvement in price growth, with six of the top ten fastest-improving markets located in the region. New Zealand markets are also experiencing a slowdown in growth. Overall, the data indicates the need for lower interest rates to stimulate growth in global housing markets.