Covid-19 and the subsequent lockdowns have significantly disrupted global real estate markets. Prime residential markets have been no exception. From Sydney to San Francisco, markets are reacting to changes in lifestyles and economic conditions.
By tracking the performance of 28 cities, the Savills Prime Index: World Cities illustrates what the pandemic has meant for prime residential values and rents in the first half of 2020. As conditions ease, we look to where the bright spots will be in the future.
Our analysis looks at how average capital values have fared compared to rents, and we also break this down city-by-city to see how each market has reacted to the Covid-19 pandemic. From this, we highlight which cities have held up best in terms of capital and rental values, and predict those who are frontrunners for the remainder of the year and into the future.
The latest findings from the Savills Prime Index: World Cities
While the longer term trends are still developing in the wake of the pandemic, the immediate impact can be seen from our latest results. The Savills World Cities Prime Residential Index tracks the performance of 28 cities around the world.
Key findings
• The impact of Covid-19 has resulted in a fall of 0.5% for capital values and 1.1% for rental values in the first six months of 2020.
• The markets which held up best are generally characterised by higher levels of domestic demand and tight supply. These factors are particularly prevalent in a number of European cities.
• Looking forward, we expect some cities to outperform others. Over the second half of 2020, we’re forecasting Amsterdam, Lisbon, Seoul and Moscow to see the strongest growth.
Source: Savills Research