Prices for prime residential properties in global luxury markets saw a slightly faster increase in the second quarter of 2026. This trend was significantly driven by an exceptional upturn in Tokyo, while markets in Canada, mainland China and parts of Australasia continued to face pressure.
The Japanese capital, Tokyo, emerged as the frontrunner with an impressive year-on-year growth of 51%, representing the highest increase among all 30 cities surveyed. This propelled Tokyo to the top of the Savills Prime Residential Index for the second quarter of 2026. This figure surpasses the global average, which stood at 3.5% during the same period.
Factors driving growth in Tokyo and Dublin
The strong performance in Tokyo is primarily attributed to a scarcity of high-quality properties and a significant appreciation in the value of the Japanese Yen. This combination of factors has boosted demand and led to the remarkable price increases. A comparable dynamic was observed in Dublin, where prices also saw substantial growth.
Dublin secured an impressive second place in the index, with a price increase of 30.5% year-on-year. This rise is mainly due to persistently high demand for prime properties in the Irish capital, which outstrips the limited supply. Such conditions create a seller's market environment that favours price increases.
International market conditions and outlook
Beyond these two leaders, other cities also demonstrated robust performance. Dubai recorded price growth of 10.7%, while Rome improved by 9.9%. The metropolises of London and New York City also showed solid rates of increase of 4.5% and 4.0% respectively. These results indicate continued strength in certain key markets, benefiting from global investment flows and local dynamics.
However, markets in Canada, mainland China and parts of Australasia remain largely unaffected by these upward trends and continue to face challenges. Global economic conditions, including inflation and interest rates, continue to impact property markets heterogeneously, leading to differentiated development across various regions. Further observation of these regional differences will be crucial for anticipating future trends in the prime segment.
