A sharp rise in luxury apartment prices: map and ranking of Italian cities.

Worldwide luxury real estate prices continue to rise. According to Knight Frank's Prime Global Cities Index, there was a global price increase of 2.1% in September 2023 compared to the same month the previous year. The report indicates stability in the real estate market. Although prices rose in about 67% of the world's major cities, only 63% of them showed growth over the last quarter. This may indicate more uncertainty in the future, which is particularly due to the continuous rise in interest rates and inflation, which are putting pressure on all segments of the real estate market, including luxury properties.

Cities with the highest luxury real estate prices

The most significant growth was seen in Manila, which surpassed the''Dubai and ranked first in the Prime Global Cities Index with a significant 21.2% increase in luxury home prices. The capital of the United Arab Emirates, Dubai, ranked second with an increase of 15.9%, while Shanghai ranked third with an increase of 10.4%. In Europe, Madrid and Stockholm are among the most expensive cities on the list, with the latter ranking sixth despite a 7.7% decline in the previous quarter. In London, on the other hand, prices fell 0.7% in the quarter and 1.7% year-on-year, bringing the city to 29th place.

The top 10 cities where real estate prices have risen the most this year:

• Manila: +21.2%
• Dubai: +15.9%
• Shanghai: +10.4%
• Mumbai: +6.5%
• Madrid: +5.5%
• Stockholm: +4.7%
• Seoul: +4.5%
• Sydney:''+4.2%
• Nairobi: +4.1%
• Deli: +4,1%

The real estate market in Italy: cities with the most luxury real estate

What about Italy? There are no Italian cities in the Knight Frank ranking, but that doesn't mean the luxury market is suffering. It continues to perform well with demand for premium real estate up 9% compared to the period before the Covid-19 epidemic. In addition, the supply of luxury real estate continues to grow slightly since the beginning of 2019 and the luxury segment now represents 2.3% of the entire Italian residential real estate market.

An analysis of the territorial distribution of luxury real estate in Italy shows,'

Sicilia East Coast: 382 million euros

Tera di Bari: €293 million

The Italian luxury market is close to the 50 billion mark. Although typically premium properties have longer selling periods than the traditional market, there has been a significant reduction in selling times in recent years. Currently, the average time it takes to remove a property listing from the market is 6.7 months, which is two months shorter than it was at the beginning of 2019.

In the luxury residential real estate market, portfolio composition is almost evenly split between apartments and detached homes. Apartments make up 52% of the total, with villas making up the remaining 48%.

In general, the value of Italian''luxury real estate is approaching the €48 billion mark, with growth in recent years taking it closer to the €50 billion mark. However, most of the value is made up of luxury villas, totaling €27.8 billion by the end of 2022, a year-on-year increase of 8%, while apartments account for €20.1 billion.

The majority of apartments are in the north, but villas are in the center. In terms of geographical distribution, apartments are mainly concentrated in the north-western part of the country, accounting for almost half (43%), followed by the center (28%) and the north-east (20%). The south and the islands contribute only 8% of the total. Villas have a different geographical distribution, with the center containing 41% of the total''numbers, followed by the northwest (28%), and the northeast ranks third with 17%. In addition, the south and the islands increase their presence, contributing a total of 15%. Despite the even distribution of apartments and villas in the market, 71% of luxury real estate demand is focused on apartments. The center and northeast recorded an increase of 20% compared to 2019, attracting the interest of potential buyers.