House prices in prime Auckland are expected to rise by 10% in 2024, the highest amongst 25 prime cities.
The study, from Knight Frank, explained that a market correction is due to the New Zealand city, where prices previously dipped by 20%.
There’s also set to be strong growth in Mumbai, India, of 5.5%, as well as Dubai in the UAE, at 5%. Dubai was last year’s leading city , and it’s thought price growth is now set to slow down.
They are followed by Madrid in Spain, at 5%, Sydney in Australia, at 5%, and Stockholm, Sweden, at 4.5%.
On Madrid and Stockholm, Knight Frank said they stand out due to offering good value, low purchase costs, a high quality of life and no restriction on overseas buyers.
Prime central London is set to be flat, while prices are set to fall in Edinburgh’s prime regions are expected to decline by -3.0%.
In terms of key trends in the year ahead, Knight Frank highlighted that landlords are under pressure due to fresh energy compliance rules, which could see rental stock shrink as they face the cost of improvements.
Higher construction costs mean there could be a dearth of supply.
Short-term lets like Airbnbs are under scrutiny from government, due to taking supply away from the residential and long-term rental markets.
Taxes could rise to compensate for higher national debts.
Meanwhile China is slowing down, as more developers are defaulting, there’s slower productivity, and the renminbi has weakened. It’s no wonder that prices are only expected to grow by 0.5% in Hong Kong in 2024.
