Prime Global Cities Index Q2 2025 Report
Knight Frank’s Prime Global Cities Index tracks the performance of luxury residential prices across key global cities on a quarterly basis using data compiled by our global research network.
Average annual house price growth across our 46-city basket slowed to 2.3% in the second quarter of 2025, down from 3.5% in Q1. The deceleration reflects growing uncertainty over the timing and scale of interest rate cuts in key global economies, pulling the growth rate further below the long-term average of 5.2%.
- 2.3% average annual growth in prices across our 46-city basket
- 75% proportion of our cities that saw positive house price growth over the past 12 months
- Seoul the city with the fastest rate of annual growth in Q2.
- Tokyo – a notable growth market, with five-year growth of 120%
Liam Bailey, global head of research at Knight Frank, commented: “Prime markets are taking a collective breath. The recovery we have seen over recent quarters was aided by the expectation of lower borrowing costs, and with that timeline now pushed out, a cooling in price growth is inevitable. We’re seeing a more fragmented market, with some European cities showing surprising strength while former high-flyers in Asia begin to level off.”
Discover more by delving into our latest report below.
