GLOBAL RESIDENTIAL FORECAST
As vaccination rollouts gather pace around the globe and the lifting of restrictions ushers in a return to a more familiar way of life we ask our local experts in the Knight Frank Research team for their take on what 2021 has in store for residential property markets globally
Following a hesitant start to the year, March 2021 was one of the busiest months on record for the UK property market. The number of exchanges, new buyer registrations and offers accepted hit the highest monthly level in ten years.
While the stamp duty holiday played an important role in driving demand there are other reasons for the strong performance that suggest activity will remain robust until at least summer.
We expect demand for second homes in Europe to strengthen once travel restrictions ease, mirroring trends seen last summer.
Demand will initially be lifestyle driven and the ‘race for space’ will continue. The South of France, Provence, the Italian Lakes and the Alps will continue to be amongst the preferred destinations but with cases in Portugal and Spain now low it is possible we will see locations such as the Algarve and Marbella join the list.
US & CARIBBEAN
A new US$1.9 trillion fiscal stimulus package, a faster-than-expected vaccine rollout and encouraging economic forecasts from the IMF are fuelling greater optimism around US prime markets in 2021.
Record low mortgage rates and a pandemic-induced reassessment of lifestyles and commuting patterns are encouraging more US homeowners to relocate and upgrade their homes.
AFRICA & MIDDLE EAST
Tilda Mwai & Faisal Durrani
The pandemic led to an oversupply of properties in key African cities, leading to price reductions and discounted rents and rebalancing the market in favour of both buyers and tenants.
The flight of expatriates, a decline in disposable incomes and currency depreciation in markets such as South Africa led to softening rents. However, in recent months we have witnessed a gradual rebound in prime residential sales in several African cities.
Asian residential markets have proved very resilient over recent months, given sound economic fundamentals and stable prospects over the medium-term. With excess liquidity in the market driven by accommodative central bank policies, buyers who have largely stayed on the side-lines during the pandemic are bringing forward purchase plans for fear of being priced out of their target markets.
For further insights please click below to read our forecasts for prime residential property prices in 25 key locations around the world during 2021.