Vienna, Austra Photo: Herr P
The firm’s new European Cities Review finds that the performance of luxury property markets in the continent’s key cities has varied considerably in the wake of the financial crisis. Safe havens such as London and Vienna have enjoyed boosted prices and interest, while debt and instability have impacted others, such as Madrid and Dublin.
Cities are more insulated against downturns than rural or coastal areas, says Knight Frank, although the latter two cities saw prices fall between 45 and 55 per cent from their previous peaks to recent troughs, while even London saw prices dip 24 per cent in the 12 months to March 2009.
Vienna is the only exception, with prices either remaining steady or growing since 2012 by approximately 5 per cent per annum.
2013 was a watershed for struggling cities such as Madrid and Dublin, with prime prices bottoming out and confidence improving.
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