Rental values in prime residential markets across the world outpaced capital growth during H1 2025 according to Savills World Cities Prime Residential Index.

While capital values rose by 0.7% across the 30 cities monitored in the index, prime residential rentals increased by 2%.

“Despite a slowdown from the 2.2% growth recorded in 2024, capital values remained in positive territory, with 60% of cities posting gains in the first half of the year,” comments Kelcie Sellers, associate director, Savills World Research. “Most markets with price falls only saw slight declines. Cities with negative price growth were primarily the larger cities where residential property can be more costly to obtain, such as London, Paris, Shanghai and Los Angeles.”

Tokyo leads the index with 8.8% growth during the first half, driven by a chronic shortage of new stock and resilient demand from both domestic and international buyers.

Berlin, Dubai, and Seoul each posted growth above 5%, supported by constrained development pipelines and strong buyer sentiment.

“The Savills Index notes that cities with strong lifestyle appeal, such as Amsterdam, Cape Town, Lisbon, and Sydney, saw growth, buoyed by low levels of prime stock and sustained international interest. The lifestyle-driven nature of these markets continues to attract buyers, many of whom are less sensitive to short-term economic fluctuations. This sustained level of demand is likely to support further price growth,” comments Dr Andrew Golding, chief executive of the Pam Golding Property group – Savills’ exclusive residential real estate partner in Africa.

Looking ahead, Savills forecasts average capital value growth of 1.5% across the index in H2 2025, with Cape Town, Seoul and Tokyo expected to lead the way with anticipated growth of 6% to 7.9%.