During 2019, the average capital value of prime residential properties across world cities remained flat, averaging an increase of 0.1%. This was down from 2.6% for 2018 and continued the slowdown in growth seen since 2016. The slowdown accelerated throughout the year and prices fell in many cities in the second half of the year resulting in an average decrease of -0.4% over the six months to December 2019.
Capital value growth by city
While prime prices on average remained flat through 2019, price growth varied across the index. Berlin and Paris were the strongest performers through 2019, with annual growth of 8.8% and 6.4% respectively. The German capital has seen strong interest from buyers and investors looking for income returns while prime property in the French capital is viewed as a safe long-term store of wealth. In both cities, undersupply remains a key driver of values.