Investing in real estate allows investors to diversify portfolios, reducing overall risk and enhancing returns with resilient markets in top-tier, ‘status-symbol’ cities such as New York, London, Hong Kong and Dubai offering a safe haven for capital amidst global political instability.
Scarcity of development land in these top-performing cities and a tight supply of luxury new homes drives demand among the world’s monied elite after trophy homes in sought-after global hubs.
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Determining where to invest in luxury property in 2025 will be a top priority for savvy real estate investors throughout the year.
So, which prime housing markets — defined as the top 5% of the market — are set to outperform in 2025 and where should you invest for the biggest returns? We look at the markets poised for healthy growth in the next 12 months and beyond.
According to Knight Frank’s Prime Global Forecast for 2025, Dubai, New York, Geneva, and Paris are leading the way when it comes to prime property price growth.
Liam Bailey, Global Head of Research at Knight Frank, weighs in on the freshly compiled data, “This year, many prime housing markets returned to growth after prices retreated in 2023.
“With rates on their way down, albeit slowly, the outlook for 2025 anticipates further growth”.
1. Dubai
+ 5% prime property price growth
The global real estate agent reports that global high-net-worth-individuals (HNWIs) are expected to spend $4.4 billion buying Dubai property in 2025.
The figure is up 76% compared to last year, as demand for luxury homes from the world’s super-rich continues to remain strong in the emirate – a leader in sustainability, innovation, and eco-friendly luxury real estate.
Forbes lists branded residences – ultra-prime real estate with concierge, boutique gyms and private chefs – as a key investment strategy for UHNWIs in 2025 and beyond with the Waldorf Astoria, Aston Martin, Tonino Lamborghini, and several more set to add more than 5,000 units between 2026 and 2029.
The UAE is redefining what it means to live luxuriously but with a conscience. The media company cites Dubai’s advancement in smart home technology as a big draw for UHNWI capital from across the globe.
The emirate is leading the way in delivering future-proof, customisable, tech-enabled residences that have sustainability and a long list of eco-credentials at their core.
Knight Frank cites a 52% fall in listings in prime neighbourhoods in 2024 as a key driver of demand in Dubai’s prime property sector. The shortage is even more pronounced in the US$10 million+ segment where available properties have dropped by 65% according to the UK realtor’s latest research.
Dubai luxury new developments launching in 2025
Ellington Cove by Ellington Properties features a bespoke collection of apartments, duplexes and penthouses with direct access to the private beach.
The Rings by PMR is a meticulously crafted development featuring 12 ultra-luxurious residences spread across two low-rise buildings.
The property offers eight 5-6 bedroom Sky Mansions and four 6-7 bedroom Sky Palaces, each spanning between 9,500 sq. ft. to 19,800 sq. ft.
Developed by Majid Al Futtain, Bo Monde features 6 and 7-bedroom mansions surrounded by serene lagoons, landscaped parks and walking trails.
The mansions have spacious layouts, modern finishes and private outdoor areas, catering to families seeking a peaceful retreat. The 13 exclusive properties are available in four styles – Allure, Lustre, Gala and Prestige.
2. New York
+ 3% Prime property price growth
Knight Frank predicts a 3% rise in prime property prices in New York citing tight inventories – the number of active listings is 54% below the five-year average – as the key driver of demand, price growth and sale volumes, which the real estate consultancy predicts will blossom in the spring.
Forbes’s market forecast is one of resilience and renewed energy; pent-up demand carried over from a sluggish end of 2024 could result in a sellers’ markets with an uptick in sales prices driven by pent-up demand.
New York brokerage Brown Harris Stevens voices excitement among agents for the year ahead, predicting a banner year for New York’s luxury housing market.
CEO Bess Freedman says: “Sellers are hesitant to list because they’re locked into low interest rates, while buyers have been patiently waiting for the right moment.”
“This renewed activity, coupled with a sense of cautious optimism among industry professionals, suggests that even modest improvements in market conditions could set a brighter tone for the year ahead”.
The luxury property realtor also cites rising bonuses – projected to be 35% higher than last year – and a post-election surge in high-end contract activity as a reason to be cheerful for healthy growth in 2025.
Similarly to UK consultancy Knight Frank, the New York estate agent predicts that inventory constraints will remain a challenge in 2025, with a sluggish construction pipeline dampening supply of luxury new homes.
Prime properties and new developments continue to command premiums, with buyers favouring the latest launches over older resales.
According to US property listings site StreetEasy, astronomical asking prices deterred buyers in recent years, leading to slow sales and empty units.
As a result, the starting price of the luxury segment is down 6.1% compared to one year ago, piquing interest from potential buyers once more.
The listings site also predicts an easing of interest rates in 2025 as a catalyst for renewed appetite for prime property units, creating frenzied competition among the wealthiest buyers for New York’s very best prime stock.
New York luxury new developments launching in 2025
Due to complete in 2025, the new development on 74th Street and Third Avenue will feature 42 units with interiors by AD100 designer Rafael de Cardenas, floor-to-ceiling windows, 5″ stained oak floors, primary suites with five-fixture baths, and in-unit washer/dryers. The first round of availability starts at $3.35 million for two-bedrooms, $4.9 million for three-bedrooms, and $12.5 million for a full-floor, five-bedroom unit.
3. Geneva
+ 3% Prime property price growth
Latest prime property market predictions from real estate agent Knight growth in the Swiss city’s luxury housing market.Frank lists Geneva as one of 2025s success stories with a forecasted 3%
Political and economic stability and a secure geopolitical location contribute to the country’s safe haven status among the world’s mega wealthy.
Favourable taxation and banking systems alongside a high quality of living also buoy the city’s prime property markets as demand among the world’s elite remains evergreen.
In November 2024, voters approved a major reduction in personal income tax with an average cut of 8.7%.
This initiative aims to restore taxpayers’ purchasing power and boost the canton’s economic attractiveness.
Effective 1st January 2025, the highest income brackets will see a reduction of about 5%, bolstering purchasing power and demand for the very best homes in the exclusive lakeside areas in and around Geneva.
Known as the “Beverly Hills of Geneva,” Cologny is one of the most sought-after and affluent of Geneva’s suburbs, offering unparalleled views of Lake Geneva and Mont Blanc.
Geneva luxury new developments launching in 2025
Ultima Cologny Geneva will feature two luxurious lakeside villas overlooking Lake Geneva, blending sleek, modern design with best-in-class natural materials like marble and wood.
Each villa includes a wellness floor with a hammam and sauna, a private cinema, and a 14-meter outdoor pool. The development is just 10 minutes from Geneva’s city centre.
4. Los Angeles
+ 3% Prime property price growth
Premium areas of LA such as Beverly Hills and Bel Air – home to prestigious, sprawling estates with stunning views and iconic zip codes – where inventory remains tight, and demand high will see growth in 2025 with a forecasted rise in prices edging towards 3%.
At time of writing, wildfires are ravaging swathes of LA homes, ultimately impacting the city’s luxury housing market long-term as the city rebuilds and rebounds from the devastation.
The tragic disaster may deter investment from overseas buyers for many years as prime neighbourhoods fell victim to the ever more frequent blazes.
Los Angeles luxury new developments launching in 2025
With environmental sustainability a key focus, mixed-use development One Beverley Hills will revitalise 17.5 acres in LA’s city centre, reimagining the western gateway of Beverly Hills.
Expected to launch in 2025, planned redevelopment will revitalise residential buildings to include private residences, a new hotel, hospitality, dining, and a retail pavilion. The project will include 10 acres of public and private gardens and open spaces that blur indoor and outdoor living.
The project’s masterplan, designed by world-renowned British architectural firm Forster + Partners, integrates existing landmarks the Beverly Hilton and Waldorf Astoria Beverly Hills.
The masterplan also adds new buildings to the site: a luxury Aman Hotel with 78 rooms, Aman-branded residences across two towers, and a standalone 100,000 square foot Aman Club – the brand’s private members’ club.
5. Paris
+2.5% Prime property price growth
A new dawn for the French capital after a period of instability, Knight Frank credits a weak Euro and ‘business as usual’ after the 2024 Olympics – also a major driver of interest in Paris real estate – and France’s general election for renewed interest in the City of Light’s luxury housing market.
The agent predicts a 2.5% rise in high-end real estate prices in desirable arrondissements in 2025. Homes here are a ‘must have’ prestige status symbol among the world’s richest, with HNWI buyers seemingly undeterred by inflation and rising interest rates.
Limited housing supply and scarce development land coupled with demand for prestigious heritage property serves as a consistent shot in the arm for Paris’s prime central areas.
Sotheby’s Paris forecasts a slight increase in average prices per square metre, which ranged between €10,000 and €15,000 in desirable districts in 2024, driven by ever-strong demand for exceptional properties.
Paris’s glitzy postcodes will see the most interest according to the luxury property agent.
Paris luxury new developments launching in 2025
Expected to be delivered in the first quarter of 2025, the seven apartments in the “Majestic” programme have a “brick and stone” facade following the traditional architectural style of the area, while the interior features, including quality materials, parking, and air conditioning.
The top end 178.63 m² duplex offers a functional and comfortable living environment with four rooms, including three bedrooms and a combined living room and kitchen.
Solid wood Hungarian-style parquet flooring adds warmth and character throughout.
6. London
+2% Prime property price growth
Knight Frank forecasts a modest 2% increase in London prime property prices in the next 12 months. The real estate consultancy attributes the non-dom tax status and increase of second home stamp duty from 3% to 5% to the UK capital’s sluggish recovery.
Despite the tax shift, London remains a global beacon for wealth, investment, elite education, culture and connectivity drawing in super-rich buyers who see a prime London address as a non-negotiable trophy asset.
Limited supply of new properties drives competition for the very best homes in traditional prestige postcodes of Mayfair, Knightsbridge, Notting Hill, Holland Park and Kensington.
Luxury property agent Beauchamp Estates predicts that foreign UHNWI capital from the United States and Middle East, in particular purchasers from Saudi Arabia, the United Arab Emirates and Qatar will buoy the mega city’s luxury property market in 2025.
Rupert de Forges, Head of Prime London property at Knight Frank, predicts that the historically overlooked central London area of Bayswater, W2 will enjoy a surge in demand.
The revitalised central London area bordered by Hyde Park and Paddington has gone up a few rungs in the prime property stakes with the development of The Whiteley and Park Modern.
Another area ‘to watch’ is Fitzrovia following the launch of ultra-prime Fitzroy Place and 101 on Cleveland.
Sought after private schools cluster around the leafy, monied suburb of Richmond drawing in wealthy international families wanting an elite education for their offspring.
The high-end estate agents also cited a favourable exchange rate for US and Middle East buyers using dollars to buy homes in the UK capital as a driver of activity.
In 2016 American buyers benefitted from a 7% price discount due to the strength of the US dollar against the pound. In 2024 this grew to an 18% price discount. The exchange rate benefit is similar for Middle East buyers.
London luxury new developments launching in 2025
Launching in Spring 2025, a new London riverside address launches at Bankside Yards on the culturally-rich, vibrant South Bank, adjacent to the Tate Modern. Top-end amenities are complemented by the five-star Mandarin Oriental hotel.
The Edit will provide 95 new riverside homes in prime central London moments from the Thames on London’s vibrant South Bank.
Each home will feature luxury Swiss-made V-ZUG appliances used in Michelin-starred restaurants around the world, as part of a UK-first exclusive partnership.
Designed to be home to arbiters of good taste, amenities include a hot and cold wellness circuit, Peloton-powered gym, elevated “Curators” concierge service, and landscaped gardens designed in partnership with Royal Botanic Gardens, Kew.
Launching in Spring 2025, 100 Kensington offers investors premium 1, 2 and 3-bedroom apartments in an exclusive new Kensington landmark. It is the tallest residential building in the Royal Borough of Kensington & Chelsea offering unparalleled views of a historic neighbourhood and the city beyond.
7. Sydney
+1% Prime property price growth
Sydney’s prime property prices – Australia’s most expensive luxury housing market – will rise by just 1% according to Knight Frank’s latest number crunching.
The modest figure is influenced by economic and political crosswinds – a federal election in May, ongoing geopolitical uncertainty, and an eagerly anticipated cut in interest rates yet to be announced at time of writing.
With its glittering coastline, exclusive mansions, pleasant year-round weather, excellent education, healthcare and high standards of living, the city is a beacon for domestic and international buyers looking for a safe and resilient place to park capital.
Latest data from FIRB, Australia’s gatekeeper for foreign investment, predicts that wealthy buyers from China will continue to buoy Sydney’s luxury housing market with high-end Australian real estate remaining a safe and stable investment for Chinese UHNW investors.
Also well represented are cash-rich buyers from Hong Kong, Singapore and the United States. Foreign capital and demand for Sydney’s trophy homes will contribute to the steady rise in property values, particularly in prime areas such as Inner West, Eastern Suburbs and North Shore.
However, inflated property prices driven by overseas investor demand has led to local buyers being priced out leading to an imbalanced and exclusive Sydney housing market. Property prices in Sydney have soared by 28% since 2019.
According to global real estate developers JLL in 2023 and 2024, Sydney saw a surge in demand for co-living spaces with investors looking for more than just a place to live; they want a community.
Latest research from the developers shows that properties with communal facilities fetch higher sales and rental prices. As more people seek out community-oriented living options, developers are increasingly focusing on creating environments that offer both privacy and community – cinemas, spas, co-working spaces and gyms – meeting the needs of a diverse domestic and international client base.
Sydney’s luxury new developments launching in 2025
Earmarked for completion in late 2024, 45 McLaren Street, North Sydney revitalises a strategically important site in the middle of the North Sydney Central Business District (CBD).
The developer’s vision is for a sustainable, mixed-use building that celebrates the site’s location at the transition between North Sydney’s dense and thriving CBD and North Sydney’s Civic Precinct.
45 McLaren Street is made up of a mix of 71 apartments and townhouses, across a stepped 14-level building, designed to allow for expansive terraces on the upper levels.
Nearly half of the building will be made up of three-bedroom configurations which start from over 100 sq m to 184 sq m. There are also one and two-bedroom apartments, as well as a two-level, four-bedroom penthouse.
Communal amenities include a roof terrace on level eight.
A joint venture between Singapore-listed First Sponsor Group and Melbourne-based ICD Property, Sydney House is a 50-storey mixed-use development at 196-204 Pitt Street, due for completion in 2025.
It is described by the developers as CBD’s “newest icon,blending modern architecture with historical grandeur moments from iconic sites Circular Quay, The Opera House, Hyde Park and Darling Harbour.
The development will offer 241 premium residences above a 136-room hotel.
The project restores the former City Tattersalls Club site, future-proofing historic features while adding a heritage bar and restaurant alongside a luxury hotel. The project is due to complete in 2027.
Anticipated to launch in 2025, 271 Elizabeth Street will occupy a prime spot adjacent to Sydney’s famous Hyde Park offering unparalleled views of the park and Sydney Harbour. The developers aim to ‘exceed all standards of luxury living’.
A mix of 42 ultra-prime two, three and four-bedroom apartments will be on offer, including full-floor apartments with terraces. Residents will have access to extraordinary amenities.
With diverse offerings and strong growth potential, these seven luxury property hotspots are poised to be key players in the global real estate market in 2025. Careful consideration of these locations can offer significant opportunities for savvy investors.
