Miami Leads the World’s Major Cities in Luxury-Home Price Growth


Luxury residential prices continued their upward trajectory in the third quarter, fueled by the need for space, according to Knight Frank. 

Average prime home prices rose 9.5% year over year in September, up from 8.3% in the second quarter, according to a report released by the real estate agency on Wednesday. 

“With travel starting to normalize, the prospect of tighter monetary policy on the horizon, as well as higher taxes and cooling measures, evidence suggests prime markets had a busy third quarter,” Kate Everett-Allen, Knight Frank’s head of international residential research, said in the report. 

Indeed, 85% of cities saw average luxury prices increase in the third quarter, compared to 76% in the previous three months, according to the report, which looked at the top 5% of the market in 46 cities around the world. Double-digit growth was recorded in 35% of cities

Miami registered the biggest growth of the cities tracked in the report. The South Florida city saw a 26.4% jump in average prices in the third quarter, the data showed.


   RANK                                     CITY                                   World Region                               12 Month % Change

1.                                        Miami                                  North America                                       26.40%

2.                                        Seoul                                      Asia                                                    22.60%

3.                                        Shanghai                                Asia                                                   20.50%

4.                                        Moscow                                Russia & CIS                                       20.50 %

5.                                        Toronto                                 North America                                      20.40%

6.                                        San Francisco                      North America                                      20.20%

7.                                        Taipei                                     Asia                                                    18.90%

8.                                         Los Angeles                        North America                                       18.20%

9.                                        Guangzhou                           Asia                                                      17.60%

10.                                       St. Petersburg                      Russia & CIS                                        15.50%


“Miami leads the index this quarter for the first time since the index started in 2007,” Ms. Everett-Allen continued. “The hunt for larger accommodation, coastal living and Florida’s low taxes acted as a key draw for a new breed of remote workers in the U.S.”


Other top-performing prime markets include Seoul, where average prices were up 22.6% annually in the third quarter, the report found. Shanghai and Moscow followed, both registering a 20.5% rise, and Toronto rounded out the top five with a 20.4% increase. 

However, Toronto was also one of 15 cities that saw luxury prices drop between the second and third quarters, sliding 1.5%, the report found. The four Chinese cities tracked in the report also saw declines. Prices were down 2.1% quarter over quarter in Shenzhen and 1.3% in Shanghai, while Beijing and Guangzhou both registered a 0.1% dip.

“The Ever Grande crisis, a raft of cooling measures and localized outbreaks of Covid-19 explain the slowdown in luxury price growth in the Chinese mainland’s top-tier cities,” Ms. Everett-Allen said in the report.  

London registered a 0.7% rise in average prices for luxury properties, compared to the same time in 2020, the report said. Quarter over quarter, prices were up 0.2%. 

Jakarta saw the biggest year-over-year decline in the average price of a prime property, 4.2%, the data showed. Dubai followed, registering a 3.6% annual decline but a 0.3% quarter-over-quarter bump, signaling a possible turnaround for the Middle Eastern financial hub. New York also saw a year-over-year drop in prices, but a 1.7% increase between the second and third quarters. 










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