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Manila in the Philippines the hottest prime housing market in the world

House prices have surged by 26.2% in Manila, making it by far the hottest prime market in the world, Knight Frank analysis shows.

Its growth has been attributed to strong economic performance, which has boosted consumer confidence and spending power, as well as significant infrastructure investment in and around the city.

Its momentum is continuing, as prices have surged by 4.6% in the past three months.

Liam Bailey, Knight Frank’s global head of research, said: “Rather than heralding a return to boom conditions, the index indicates that upwards price pressures are stemming from relatively healthy demand, set against continued low supply volumes.

“The pivot in rates – when it comes – will encourage more vendors into the market, leading to a welcome return to liquidity in key global markets.”

Tokyo, Japan, is in second place, with prices rising by 12.5% annually. This is despite them dropping by -2.1% in the past three months.

Knight Frank said favourable mortgage rates offered by Japanese banks, combined with a weaker yen, has served to stoke foreign investment into Tokyo. The city is also seeing population growth from other parts of Japan.


GDP growth has boosted India, as in third place comes Mumbai, with prices rising by 11.5% annually, as well as by 1.5% in the past three months.

In terms of the UK, London is the 40th city out of 44, with house prices falling by -2.4%, highlighting how the UK has experienced some stagnation in the past year.

House price growth averages at 4.1% across all the prime cities.

The Prime Global Cities Index was published by Knight Frank.