Zurich and Madrid posted the highest growth rates for luxury residential real estate prices among European cities in the first quarter of 2026, according to the international consulting firm Knight Frank.
In both cities, luxury housing prices rose by 4.8% compared to the first quarter of last year. Zurich ranked tenth in the global ranking, while Madrid ranked eleventh.
Prices rose by 4.2% in Geneva, 3.4% in Lisbon, 3.2% in Frankfurt, and 2.9% in Berlin.
Prestige real estate prices rose by 2.5% in Dublin, 2.3% in Monaco, 1.5% in Paris, 1% in Bucharest, and 0.3% in Vienna.
Price declines were recorded in Stockholm (0.7%), Milan (0.9%), and London (4%).
Knight Frank attributes the resilience of Switzerland’s markets to capital inflows, a relatively stable tax environment, and demand from affluent international buyers. Growth in Madrid and Lisbon is driven by comparatively attractive prices, the climate, and strong interest from foreign investors.
Over a five-year period, Milan emerged as the European leader, with prices for premium housing rising by 36.2%. It is followed by Madrid, with growth of approximately 29.7%, and Zurich, at 27.5%.
London was the only one of the tracked European markets where prices fell over the five-year period—by approximately 5%. Knight Frank attributes this to high transaction taxes, the abolition of a special tax regime for non-residents, and higher borrowing costs.
The European portion of the index includes Berlin, Bucharest, Dublin, Frankfurt, Geneva, Lisbon, London, Madrid, Milan, Monaco, Paris, Stockholm, Vienna, and Zurich.
Kyiv and other Ukrainian cities are not included in this study.
