In a recent study by Knight Frank, Manila has emerged as the world’s leading city for prime housing market growth. This bustling metropolis has seen an impressive 26.2% surge in house prices, earning it the title of the hottest prime market globally. The city’s remarkable growth in the property sector is primarily due to its robust economic performance, which has significantly enhanced consumer confidence and spending capabilities. Additionally, substantial investments in infrastructure within and around Manila have further propelled its housing market to new heights.

Even in the face of global economic fluctuations, Manila’s housing market continues to show strong momentum. Over the past quarter alone, prices have climbed by 4.6%. According to Liam Bailey, Knight Frank’s global head of research, this trend is not merely a flash in the pan but a reflection of enduring demand juxtaposed against a backdrop of limited supply. Bailey points out that the expected adjustment in interest rates might soon invite more sellers into the market, which would enhance market liquidity and could stabilise the rapid price inflation.

Tokyo and Mumbai Follow Suit

Tokyo, Japan, holds the second spot on the list, with an annual price increase of 12.5%. Despite a recent 2.1% drop in the last three months, Tokyo’s housing market benefits from attractive mortgage rates and a weakening yen, which have collectively encouraged foreign investment. Moreover, Tokyo continues to attract a growing population from other regions of Japan, further buoying its housing market.

Mumbai, India, ranks third, with house prices having risen by 11.5% over the last year and an additional 1.5% in the past quarter. The city’s growth is closely tied to India’s overall economic advancements, highlighting a region-wide trend of burgeoning real estate markets.

London Lags Behind

In stark contrast to the top performers, London finds itself at the 40th position out of 44 cities analysed, with a decline of 2.4% in house prices. This dip underscores a broader stagnation within the UK’s prime housing market over the past year, reflecting broader economic challenges faced by the region.

Global Overview

The global average growth rate for prime city housing markets stands at 4.1%. While some cities like Manila and Tokyo show vigorous growth and promising market dynamics, others like London depict a more subdued picture, affected by economic stagnation and less favorable market conditions.