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The international consulting company Knight Frank has updated the data of the Prime Global Cities Index (PGCI) for the first quarter of 2021. In the 46 cities analyzed, prices increased by an average of 4.6% year-on-year, which is a record mark since the fourth quarter of 2017 (+4.2%). The ranking was led by the Chinese cities of Shenzhen (+18.9%), Shanghai (+16.3%) and Guangzhou (+16.2%). Moscow moved from the 11th position to the 8th (+12.4% for the year, +7.3% for the quarter). St. Petersburg went up from 43rd to 6th place: for the year, the price growth was 13.4%, and for the quarter – 2.5%.
Says Marina Shalaeva, the Director of the Foreign Real Estate Department at Knight Frank Russia: "In the first quarter of this year, Asian cities occupied five positions in the Top-10 of the Prime Global Cities Index. It is not surprising, because the region is considered one of the most promising in terms of real estate investment, and against the background of accelerated economic development and active demand, Shenzhen (+18.9%), Shanghai (+16.3%) and Guangzhou (+16.2%) show the maximum price growth.
The sharp increase in demand was driven by low mortgage rates (a record for some markets), limited supply, and the desire to change housing conditions after lockdown.
However, in the most popular European destinations of Russian ultrahainets, the dynamics are multidirectional. For example, during the year, prices had fallen in Berlin (-1.3%), Madrid (-2.9%), London (-3.5%) and Paris (-3.7%). The price adjustment is due to a combination of factors such as prolonged and severe restrictions, the postponement of construction of new projects, and changes in tax policy. In Europe, demand has not yet fully recovered, so the cities did not enter the top ten of the rating, but Geneva (+9.2%) and Stockholm (+7.7%) were close to this. Separately, it is worth noting the newcomer of the index – Lisbon, which took the 24th place with a price increase of 2.4%. In 2020, Portugal has become the most popular destination for buying residential real estate for our clients thanks to the opportunity to participate in the residence permit program".
| Position | City | Changes per year, % | Changes per quarter, % |
|---|---|---|---|
| 1 | Shenzhen | 18,9% | 6,7% |
| 2 | Shanghai | 16,3% | 8,5% |
| 3 | Guangzhou | 16,2% | 12,6% |
| 4 | Vancouver | 15,2% | 6,3% |
| 5 | Seoul | 14,8% | 1,3% |
| 6 | St Petersburg | 13,4% | 2,5% |
| 7 | Los Angeles | 12,6% | 2,2% |
| 8 | Moscow | 12,4% | 7,3% |
| 9 | Taipei | 12,2% | 6,5% |
| 10 | Miami | 10,2% | 2,4% |
| 11 | Toronto | 10,1% | 5,3% |
| 12 | Geneva | 9,2% | 2,9% |
| 13 | Manila | 7,9% | -0,4% |
| 14 | Stockholm | 7,7% | 4,7% |
| 15 | San Francisco | 7,5% | 2,2% |
| 16 | Auckland | 7,5% | 5,7% |
| 17 | Zurich | 7,2% | 2,7% |
| 18 | Edinburgh | 6,8% | 2,2% |
| 19 | Beijing | 6,4% | 4,3% |
| 20 | Perth | 4,1% | 0,2% |
| 21 | Brisbane | 3,8% | 1,6% |
| 22 | Gold Coast | 3,5% | 1,2% |
| 23 | Singapore | 2,5% | 0,4% |
| 24 | Lisbon | 2,4% | 1,9% |
| 25 | Sydney | 1,9% | 2,0% |
| 26 | Frankfurt | 0,8% | -2,2% |
| 27 | Melbourne | 0,4% | 0,7% |
| 28 | Vienna | 0,4% | 0,0% |
| 29 | Bucharest | 0,4% | 0,3% |
| 30 | Dublin | 0,3% | 1,0% |
| 31 | Monaco | 0,0% | 0,0% |
| 32 | Delhi | -0,2% | 0,0% |
| 33 | Nairobi | -0,3% | 2,7% |
