European Cities Show Market Shift In Investor Interest

A look back at ten years of data on Europe’s luxury residential markets has revealed a shift in the continent’s “centre of gravity” – and a notable absentee from the list of top-performers.

The 2024 edition of Knight Frank’s Prime International Residential Index (PIRI), which tracks movements in luxury residential prices on an annual basis, showed up some “stark” differences between key markets.

The gap between the strongest and weakest performers in Europe is currently almost 15 percentage points, and some are now “looking like a good buying opportunity”, according to the firm.

This includes London, which has failed to trouble the top ten since 2014.

- The centre of gravity has shifted from northern Europe to southern. In 2016, three German cities were in the top ten, but none have featured since 2018.
- Madrid and the Algarve have made the most appearances, both totted up seven entries in the last decade. Italian markets have been late to the party but notched up three entries in 2024.
- Alpine markets feature consistently – Val d’Isere, Verbier and Chamonix have three or four entries each over the last decade.