Luxury real estate: the markets that have seen the most growth
Dubai has almost tripled its prime values in five years. Tokyo has more than doubled. Miami, Saint-Tropez, Manila, and Seoul have also undergone significant changes in scale. Which markets have actually seen the strongest growth in luxury residential real estate?
Since 2020, luxury real estate has not grown at the same rate everywhere
The rise in luxury real estate prices has been spectacular in some markets and virtually non-existent, or even negative, in others.
To compare these trajectories, Propriétés De Charme relies primarily on the Prime International Residential Index — PIRI 100 published by Knight Frank.
This index tracks price movements in one hundred luxury residential markets spread across major cities, seaside destinations, second-home markets, and mountain resorts.
The 2026 results show considerable dispersion: Dubai shows +193.9% over five years, Tokyo +159.3%, while several historical markets have experienced much more moderate growth.
The 10 luxury markets that have seen the most growth
Residential price trends over the five years ending in the fourth quarter of 2025. Values are expressed in local currency: they measure the evolution of the real estate market, not the return for a foreign buyer after currency conversion.
Dubai and Tokyo: two very different engines
Dubai: a change of scale
Dubai's prime real estate market has seen a dramatic resurgence since the pandemic. The arrival of wealthy new residents, attractive tax policies, enhanced security, the availability of rare villas, and the proliferation of luxury residences have profoundly transformed the market.
Tokyo: The Japanese Surprise
Tokyo shows the second-highest growth over five years and is set to become the leading PIRI market by 2025 with an annual increase of 58.5%. Knight Frank highlights in particular the scarcity of new prime properties and sustained demand.
Dubai, however, remains cheaper
Despite this surge, $1 million can still theoretically buy approximately 62 square meters of prime residential space in Dubai, compared to 37 square meters in Tokyo. Therefore, a significant increase does not necessarily mean that the market has become the most expensive.
Five-year champions are not always one-year champions
The PIRI 100 also allows us to compare the evolution over the single year 2025. This avoids confusing a long-term structural trend with a recent acceleration.
Sun, taxation, scarcity: holiday markets have changed status
Palm Beach
Third in the five-year rankings, Palm Beach illustrates the migration of some American wealth to Florida and the growing demand for large properties in the rarest locations.
Miami
The city has transformed from a primarily secondary destination into a true hub for residence, business, and heritage. Knight Frank nevertheless notes a recent slowdown after the extraordinary period of growth that began in 2021.
Saint-Tropez
The Saint-Tropez peninsula ranks eighth over five years. Its limited building stock, the scarcity of exceptional villas and international demand maintain very strong pressure on the best locations.
Six factors explain some of these increases
Mobility of the very wealthy
Very wealthy households are increasingly distributing their residences across multiple countries and adapting their locations more quickly to economic, fiscal, and geopolitical changes.
Scarcity of turnkey properties
In several markets, demand is focused on properties that are immediately habitable, perfectly renovated, and in the best locations.
Taxation and the economic environment
Differences in taxation, residence, governance and stability can rapidly shift a portion of international demand.
New centers of wealth
Asia, the Middle East, India, and certain American regions produce more buyers capable of intervening in the ultra-prime segment.
Branded Residences
Branded residences have created new standards for service, architecture and pricing, particularly in Dubai, Miami and several emerging markets.
Land constraint
Saint-Tropez, Palm Beach, central Tokyo or certain districts of Miami have a rare stock that cannot be easily reproduced.
If we only look at the cities, the podium changes
Residence Report 2026/27 offers a different perspective: focusing solely on major urban markets, covering the five years ending in the first quarter of 2026.
This methodology therefore excludes certain resort markets from the PIRI 100, such as Palm Beach, Saint-Tropez, and Quinta do Lago. It results in the following urban ranking:
A past price increase is never a guarantee of future performance
A market that has gained 60%, 100% or nearly 200% in five years is not automatically the best place to buy today.
Exceptional progress can also mean that the entry point has become much higher and that the future pace will necessarily be different.
The analysis of an international acquisition must take into account, in particular, the currency, taxation, costs, liquidity, restrictions applicable to foreigners, potential return and the ability to resell.
Price, growth, and transactions don't tell the same story
Four complementary perspectives on global luxury real estate
Purchasing power, super-prime sales, ultra-prime neighborhoods and rising values: this series analyzes the global market from four different angles.
Twenty markets compared with the same budget reference.
02 · Super-prime Luxury sales over $10 million: global rankingNumber of sales, cumulative value and depth of major markets.
03 · Micro-markets The most expensive neighborhoods in the worldTen ultra-prime addresses and the reasons for their rarity.
Current article 04 · Evolution The luxury real estate markets that have seen the most growthFive years of transformation in prime residential markets.
Search for or list a luxury property
Propriétés De Charme is an independent portal dedicated to character, luxury and prestige properties, in France and internationally.
Measured changes over time, not promises of performance
Sources verified on October 9, 2026.Main price data comes from Knight Frank Research international publications.
Discover the prestigious properties featured on the portal
Search for a property, consult our publication criteria or choose the solution adapted to real estate professionals and individual owners.