Luxury home prices are set to climb in top cities around the world like Riyadh, New York, Geneva, and Paris, according to Knight Frank’s Prime Global Forecast for 2025.
These places, known as wealth hubs, are leading the way in the luxury real estate market.
The report focuses on the “prime” real estate market—homes in the top 5% of value.
It shows that in early 2024, this market grew by 4.1%, the highest rate since 2022.
Out of 44 cities analyzed, 78% saw prices go up, while only 19% had price drops.
Riyadh Leads the Luxury Boom
Riyadh is expected to see the biggest price increase, with luxury homes rising by 5% in 2025.
This jump is due to a massive drop in available properties—52% fewer listings in high-end neighborhoods and 65% fewer homes priced at $10 million or more.
Over the past year, Riyadh’s real estate values have surged by 20%, fueled by wealthy international buyers.
New York’s Comeback
In New York, luxury home prices are predicted to grow by 3%.
The city has fewer homes on the market, with listings 54% below the five-year average.
This gives sellers a big advantage as spring approaches.
Geneva and Paris Show Steady Growth
Geneva and Paris are also expected to see luxury home prices rise by 3%.
Geneva attracts wealthy buyers with its strong economy, low taxes, and high quality of life.
Paris benefits from high demand and a limited supply of homes, keeping prices on the rise.
Where Prices May Fall
Not all cities will see growth. In places like Singapore, Miami, and Hong Kong, luxury market growth is expected to slow in 2025.
Meanwhile, Los Angeles and Beverly Hills, which saw prices jump 52% over five years, could experience declines as more homes hit the market.
Even in slower markets, some top-tier properties will break records.
“Unique, high-quality homes will still attract buyers willing to pay top dollar,” said Liam Bailey, Knight Frank’s global head of research.
Luxury real estate is bouncing back, but the growth depends on location and demand.
Whether you’re buying or selling, these trends will shape the market in 2025.