Forecasts

Knight Frank's Kate Everett-Allen assesses what lies ahead for the world’s top luxury residential markets, and highlights the key trends set to shape their performance.

Capital Economics expects house prices to fall by 10-15% - but the impact on the wider economy may not be as severe as in previous property market downturns...

House prices will fall farther than expected, suggests mortgage lender, as borrowers struggle with rising costs.

Estate agency maintains property price forecasts for the year ahead, but cuts its outlook for Prime Central London rental prices.

Prime London postcodes and top-tier university cities 'are the most likely to escape relatively unscathed' from the property market downturn, says Garrington.

'Much of the froth has now come out of the market and buyers are generally more measured in their approach, especially with regard to values,' says buying agency Heaton & Partners.

More than 50 London neighbourhoods saw some buying activity above £5mn in 2022, says Savills - but the firm still expects traditional Prime Central postcodes to outperform in price growth terms in the…

'The rapidity of recent price declines in economies like Sweden, Canada, New Zealand, and Australia suggests prices may retrace a large part of their previous boom,' says Adam Slater of Oxford Economics.

17 of the 30 locations tracked by the Savills prime residential world cities index are expected to record slower growth in 2023 than in 2022, but 13 are forecast to equal or exceed last year's price…

Savills expects prime London rental growth to calm from its double-digit run to +5.0% over 2023 and +3.0% by the end of 2024. The prime commuter belt is set for an even sharper slowdown.

Rarely has the current state of the UK property market been such a poor guide for what happens next, says Knight Frank's research chief.

'The legacy of the pandemic – where buyers were driven by lifestyle choices and the birth of the ‘race for space’ phenomenon – is now permanently ingrained in the UK buyer's psyche,' says Savills,…