The report highlights that the major change is not in the figures themselves, but in overall market sentiment. Higher borrowing costs and geopolitical uncertainty have slowed investment activity, but demand remains resilient, supported by a persistent shortage of high-quality properties.
Against this backdrop, growth is shifting geographically. According to Prian, Asian and Southern European markets are expected to lead in 2026. Seoul stands out as the strongest performer, with prices projected to rise by 6–8%, while Tokyo, Madrid, Lisbon, and Cape Town are expected to follow with growth of around 4–6%.
Tokyo remains a key example of the current market cycle. In 2025, its luxury housing segment surged by about 30%, one of the most significant increases in recent years. This growth was driven by limited supply, rising construction costs, a weak yen, and strong inflows of foreign capital. While this rapid expansion is expected to ease in 2026, investor interest in the market remains strong.
In Europe, growth is more moderate. Cities such as Madrid, Lisbon, and Athens continue to benefit mainly from constrained supply, which remains the primary driver of price increases. Meanwhile, Paris and Amsterdam are gradually recovering from earlier price corrections, as improving financing conditions slowly encourage buyers back into the market.
