Seoul and Tokyo to Lead Global Property Growth in 2026

The global luxury property market is changing fast. According to the latest Savills World Cities Index, Seoul and Tokyo will lead the world in 2026. These two Asian hubs are set to outpace major cities in Europe and the United States.

Why Seoul is the Top Performer

First, let’s look at South Korea. Experts predict that prime apartment prices in Seoul will rise by 6% to 7.9% in 2026. This follows a massive 14.3% jump in 2025.

But why is this happening? Primarily, the city faces a severe shortage of new homes. Land is scarce and new construction is slow. Consequently, wealthy buyers are competing for very few properties. Although the government has tightened lending rules, demand remains record-high in core districts.

Tokyo’s Incredible Momentum

Similarly, Tokyo continues to attract massive investment. In 2025, capital values in Tokyo grew by a staggering 30%. In 2026, this trend will likely continue.

Both local and foreign investors want a piece of the Japanese market. However, they face a big challenge. Office developers are buying up the same land that residential builders want. Because of this competition, luxury supply remains very low. Therefore, prices stay high.

A Recovery for Singapore and Hong Kong

In addition to Japan and Korea, other Asian markets are showing signs of life.

• Singapore: Values will likely grow by 2% to 3.9%. This is a great sign because the market struggled in 2025. Now, local buyers see “value” in the current prices.
• Hong Kong: The market is finally stabilizing. New buyers from Mainland China are moving into prime neighborhoods. As a result, we expect growth of up to 3.9% this year.

The Rest of the World

In contrast, the outlook for the West is much slower. For instance, cities like Paris, Milan, and New York will only see growth between 0% and 1.9%.

Furthermore, Dubai is slowing down. After years of rapid gains, Dubai’s growth will normalize at around 1.9%. Meanwhile, China continues to face hurdles. Prices in Chinese cities may drop by nearly 4% due to low demand and a shrinking population.

Key Takeaways for Investors

So, what does this mean for you? Currently, the “Safe Haven” for luxury real estate has moved to North Asia. Chronic undersupply and strong lifestyle appeal are driving this shift.

In conclusion, if you are looking for growth in 2026, keep your eyes on Seoul and Tokyo. These cities offer the best potential for capital gains in a volatile world. markets of Seoul and Tokyo.

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