Prime residential markets react to changes in lifestyles and economic conditions

Prime residential city markets around the world tend to prove more resilient than the wider mainstream market, although much still depends on the economic situation, which is only now materializing in a lot of cities, according to Savills.

However, the COVID-19-related economic crisis is not a financial crisis as in 2008, when many property owners were highly leveraged. Few sellers, therefore, are being forced to sell and may choose to wait to sell rather than lowering the price.

The Savills Residential Global Market Survey, a survey of experts across the Savills global residential network, found 46 percent of respondents expect to see slight price falls in second half 2020, compared to only 5 percent who anticipate price rises.

Looking to 2021 and beyond, respondents are positive about prices. Nearly half of all respondents anticipate residential price increases in 2021, and 70 percent expect price increases in 2022.