Following the momentum set in motion by the first waves of the pandemic, 28 out of 30 cities are expected to experience price increase for prime residential properties in 2022. It is expected to show an average prime capital growth of 4.3%, the second highest in 5 years just behind 2021.
Low stock levels, the desire for bigger spaces ideal for permanent or long-term hybrid working conditions and relatively low interest rates resulting in affordable mortgages were some reasons behind the value increase in 2021. However, openness of the borders for cities that rely on international demand, and the market cooling measures, prevalent especially in Asia, could be the determining factors of the prime residential outlook in 2022.
Building on the 21% growth in 2021, Miami is forecasted to be the best performing US city, anticipating a growth of 10% due to Florida’s low-taxes, Miami’s competitive prices and the added the appeal of coastal living. New York, on the other hand, is expected to grow between 4 and 5.9%.
| City | Forecast 2022 Growth |
| Berlin | 10% or higher |
| Miami | 10% or higher |
| Moscow | +8 to 9.9% |
| Seoul | +8 to 9.9% |
| London | +6 to 7.9% |
| Singapore | +6 to 7.9% |
| Amsterdam | +4 to 5.9% |
| Geneva | +4 to 5.9% |
| Los Angeles | +4 to 5.9% |
| Madrid | +4 to 5.9% |
| Milan | +4 to 5.9% |
| New York | +4 to 5.9% |
| San Francisco | +4 to 5.9% |
| Sydney | +4 to 5.9% |
Berlin is forecasted to the be the standout among the European cities and are expected to grow by at least 10% in 2022. New, prime developments are bringing quality stock to the market, supported by strong domestic and international purchaser demand.
Prime Central London is another standout, with growth of 8% forecast. Paris is the only European city where there is no growth forecast. Prices are expected to stabilize this year after several years of catch up.
Seoul may see the strongest growth of any Asian city in 2022 with an anticipated growth between 8 and 9.9% over the 12% recorded in 2021. A government scheme to curb speculative buying by imposing higher taxes on owners of multiple properties has pushed purchasers to spend more on individual homes and resulted in boosting the prime markets. Other strong performers expected in 2022 are Singapore (6% to 7.9%) and Sydney (4% to 5.9%), though growing at slower rates than in 2021, with additional lending restrictions for foreign buyers.
