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In its recent Prime Global Forecast 2020 report, Knight Frank looked ahead to how the world's top prime housing markets will perform in the next year.
Paris is expected to have the world's strongest luxury real-estate market in 2020, thanks to low interest rates, economic stability, and a limited inventory of high-end properties, according to the report.
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Berlin and Miami are also forecasted to have strong years. Cities like New York, Dubai, and London, on the other hand, are expected to see prices go down.
Here's how the world's top luxury housing markets are expected to fare in 2020, ranked in ascending order by expected price growth.
The British Columbia port city of Vancouver will see a 5% decrease in luxury home prices in 2020, but the decline is actually slowing down, according to Knight Frank.
The housing market is slowly recovering thanks to less and less inventory and a gradual adjustment to property market regulations.
14. New York City
New York City is forecasted to see high-end home prices go down by 3% in 2020 due to lower mortgage rates and strong employment indicators.
13. Dubai
While luxury real-estate prices are expected to drop by 2% in 2020, Dubai's prime housing market will be boosted by its hosting of Expo 2020 in October.
The city has poured money into new infrastructure such as expanded metro lines leading up to the event, according to Knight Frank.
12. Mumbai
Buyers in Mumbai are expected to be "cautious" in 2020 after the economic slowdown in 2019 and an increase in the stamp duty tax, according to Knight Frank. Prime real-estate prices are forecasted to shrink by 1%.
With some of the uncertainty surrounding Brexit dissipated after a Conservative majority was elected to Parliament, London's housing market should see the release of a "pent-up demand that has built in recent years," with expected growth of about 1%, according to the report.
9. Los Angeles
Luxury home prices are expected to grow by 2% overall in Los Angeles in 2020, but the growth depends on which price range you're looking at.
The LA market is forecasted to see strong demand for homes under $2 million and moderate price growth in the $2 million to $10 million range. The $10 million-and-above range, on the other hand, is "slow [and] patchy at best," according to Knight Frank.
T6. Melbourne
Luxury prices in Melbourne are expected to grow by 3% thanks to a lower interest rate environment.
The Australian city is seeing high demand from buyers who want to downsize to properties that are easy to maintain and close to a city center.
T6. Singapore
In Singapore, the high-end market will grow by about 3% as well, thanks to wealth moving in from Hong Kong amid political tensions there.
T6. Madrid
Knight Frank expects Madrid will see price growth of 3% in 2020 thanks to an increase in international buyers.
T4. Sydney
Prices are forecasted to grow 4% in Sydney in 2020 thanks to lower interest rates, a limited supply of high-end homes, and major investments in its light rail system.
Like Melbourne, high-end homes in Sydney are particularly in demand for those looking to downsize.
T4. Geneva
Geneva will see prices swell by 4% for similar reasons to Sydney: low interest rates and investment in transportation — in Geneva's case, the Leman Express commuter rail network.
T2. Miami
Luxury real-estate prices in Miami will increase by 5%, according to Knight Frank, largely thanks to theinflux of wealthy people fleeing tax reform that made it more expensive to own high-end homes in places like New York, Connecticut, California, and New Jersey.
T2. Berlin
The German capital will see prime price growth of 5% in 2020, thanks to high demand from both domestic and international buyers, according to the report.
1. Paris
Paris is expected to be the strongest luxury housing market in 2020, thanks to price growth of 7%, low interest rates, economic stability, and a limited supply of prime properties, according to Knight Frank.
The French capital's real-estate market will also see a boost thanks to the upcoming 2024 Summer Olympics and the Grand Paris Project, Europe's largest infrastructure initiative.
