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uxury home prices are expected to rise globally, particularly in prime markets. According to Knight Frank's Prime Global Forecast for 2025, wealth hubs like Dubai, New York, Geneva, and Paris will lead the growth in luxury property sales. The prime sector, which accounts for the top 5% of the market, saw its strongest price growth since 2022 in Q1 2024 at 4.1%, signaling a recovery.

    In the report, Liam Bailey, global head of Knight Frank's research department, notes that many prime housing markets returned to growth after prices retreated in 2023. With interest rates decreasing, the outlook for 2025 anticipates further growth, led by Dubai, New York, Geneva, and Paris. However, some key markets are facing a standstill in prices due to affordability concerns and rising inventory levels.

    Dubai is expected to see a 5% increase in prime real estate prices in 2025, driven by a significant drop in listings and a surge in wealthy international buyers. New York's luxury market is predicted to grow 3%, with low inventory levels putting sellers at an advantage. Geneva and Paris are also expected to see 3% price increases due to strong demand and limited supply.

    In contrast, expensive hubs like Singapore, Miami, and Hong Kong may experience slower annual growth in 2025. Los Angeles and Beverly Hills, where prices have risen 52% over the past five years, could even decline as inventory levels increase. Despite this, Bailey notes that some buyers will still pay top dollar for unique properties.