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.
Tokyo ranked first in the world in terms of the rate of growth in luxury housing prices in the first quarter of 2026, according to Knight Frank’s Prime Global Cities Index.
Over the past 12 months, luxury housing in the Japanese capital has risen in price by 44.4%. However, compared to the previous quarter, prices fell by 8.6%, marking the weakest quarterly performance among the cities tracked.
Manila took second place, where the cost of premium housing rose by 19.9% year-over-year and by 3.3% quarter-over-quarter.
Dubai ranked third with year-over-year growth of 13%. However, prices in the emirate fell by 0.8% in the first quarter.
Next were Seoul with an 11.3% increase, Singapore with 9.8%, Mumbai with 8.2%, Nairobi with 7.1%, Perth with 6.2%, Bangalore with 5.2%, and Zurich with 4.8%.
Seoul showed the strongest quarterly performance, with luxury housing prices rising by 5.4% over three months. Prices rose by 5% in San Francisco, 3.3% in Manila, and 3% in Bangalore and Miami.
Asian cities took five of the top six spots in the ranking, reflecting stable demand for premium real estate from affluent local and international buyers.
Dubai remains the leader in the longer term as well. Over five years, from the first quarter of 2021 to the first quarter of 2026, prices for premium housing in the emirate rose by 180.7%. In Tokyo, the increase was 126.4%; in Manila, 91.8%; in Seoul, 71.5%; and in Miami, 64.4%.
Kyiv and other Ukrainian cities are not included in the study.
Cyprus’s residential real estate market continued to grow in the first half of 2026 amid steady demand from foreigners, rising construction costs, and active construction in coastal cities.
According to a study by Ask Wire, the average price of an apartment sold in Limassol from January to June was approximately 363,000 euros. In Paphos, this figure was estimated at 262,000 euros; in Nicosia, 183,000 euros; in Larnaca, 171,000 euros; and in the Famagusta area, 150,000 euros.
Data from the Central Bank of Cyprus confirms that the upward trend continues. In the first quarter of 2026, apartment prices rose by 10.8% compared to the same period last year, prices for single-family homes rose by 3%, and the overall residential real estate index rose by 7.5%. The regulator attributes the price increases primarily to sustained demand from foreign buyers, rising construction costs, and the currently limited supply of housing. The report was published on June 23, 2026.
Limassol remains the most expensive market, where a significant portion of the supply consists of luxury coastal complexes, high-rise residential buildings, and properties targeted at international investors. Paphos ranks second in terms of average apartment prices.
Larnaca showed the most notable growth. According to Ask Wire’s estimates, apartment prices in the city rose by nearly 8.9% over the year, and 1,521,000 apartment transactions were recorded in the first half of the year. Demand is driven by prices that are lower than in Limassol, the development of urban infrastructure, proximity to the airport, and foreign buyers’ interest in new seaside properties.
In the first quarter of 2026, foreign buyers accounted for approximately 43.4% of all registered real estate purchase agreements in Cyprus, compared to 40.1% for the full year of 2025. Buyers from countries outside the EU accounted for 29.1% of the market. Official statistics from the Cyprus Land Department are published with a breakdown by EU and third-country buyers but do not include a complete, up-to-date ranking by nationality.
Who Is Buying Real Estate in Cyprus
The main foreign buyer groups include citizens of the United Kingdom, Russia, Israel, Lebanon, and Greece; however, their presence varies significantly by region.
In Paphos, demand from British, Russian, and Israeli buyers is particularly noticeable. At certain times, foreign buyers account for up to three-quarters of local transactions. British buyers tend to purchase properties for relocation, vacation, or long-term residence, while Russian and Israeli demand is largely linked to the relocation of capital, businesses, and families.
Larnaca primarily attracts buyers from Israel and Lebanon. For them, the city is appealing due to its transportation accessibility, relatively low entry barrier, and geographical proximity to the countries of the Eastern Mediterranean.
In Limassol, citizens of Russia, Israel, and Greece remain among the most prominent foreign buyers. Nicosia relies more heavily on domestic demand, while Greeks, Britons, and Australians stand out among foreign buyers there. In the Famagusta region, buyers from the United Kingdom, Greece, and Lebanon play a significant role.
Chinese investors, who were actively present in the Cypriot market from 2020 to 2024, have become less prominent in recent regional rankings. However, official statistics may underestimate the share of foreign capital, as purchases made through companies registered in Cyprus or other EU countries may be counted as domestic transactions.
The market is also being supported by the recovery of mortgage lending: the volume of mortgage loans issued rose by 24.5%, while the average interest rate fell to approximately 3.15%. New, energy-efficient one- and two-bedroom apartments located near the coast are in the highest demand.
Ask Wire expects that by the end of 2026, real estate prices in Cyprus will rise by an additional 3–5% on average, and prices for new energy-efficient apartments will increase by 4–6%. Larnaca is likely to continue growing faster than the national average. The main limiting factors will remain the declining affordability of housing for local residents, a shortage of new supply, and geopolitical uncertainty in the Eastern Mediterranean.
The median price of apartments in Ukraine rose by 3% between January and June 2026—to $61,000—with Uzhhorod nearly catching up to the capital in terms of housing prices, according to an OLX study.
According to the platform’s analytical center, the apartment market in Ukraine showed moderate growth in the first half of 2026. The number of listings increased by 4%, and the average number of responses per listing rose by 3%; the median price of apartments in dollars increased by 3% and stood at $61,090 as of June.
The most significant increase in the price of one-bedroom apartments on the secondary market was recorded in Vinnytsia (+11%), Khmelnytskyi (+9%), as well as Chernivtsi and Zaporizhzhia (both +7%). Price declines were observed in Kherson (-13%), Rivne (-4%), and Kyiv (-3%).
Kyiv has so far managed to retain first place in terms of real estate prices ($75,040 median price for a one-bedroom apartment), followed by Uzhhorod ($74,749) in second place and Lviv ($73,805) in third. The lowest prices were in Kherson ($13,235), Zaporizhzhia ($15,935), and Mykolaiv ($20,217).
In Ukraine’s largest cities, the trend in one-bedroom apartment prices varied by district. The most consistent price growth was observed in Odesa, where apartment prices rose by 2–4% across all districts. The most expensive apartments were in the Primorsky District ($65,449), while the most affordable were in the Peresypsky District ($32,388).
In Kharkiv, the largest increases were recorded in the Industrial (+15%, to $23,678), Slobidskyi (+13%, to $24,363), and Osnovyanskyi (+11%, to $34,403) districts.
In Lviv, most districts also saw an increase in housing prices, with the most significant increases occurring in the Zaliznychny (+12%, to $72,874) and Frankivskyi (+9%, to $75,320) districts.
At the same time, prices in Kyiv mostly remained stable or declined, with the sharpest drop in the Dniprovskyi district (-10%). Pecherskyi remains the most expensive ($163,134), while Desnianskyi is the most affordable ($44,859).
The trend in Dnipro was the most mixed: depending on the district, price changes ranged from +17% in the Soborny district ($43,926) to -22% in the Shevchenkivskyi district ($31,998).
Bulgarian authorities are considering changing the methodology for determining the taxable value of real estate, which could lead to an increase in annual property taxes and transaction costs when buying or selling real estate.
The changes may be included in the 2027 state budget, said Bulgarian MP Yavor Gechev. The legislative framework for implementing the new system is scheduled to be drafted in October–November 2026, after which a special working group will determine the new valuation coefficients. A final decision has not yet been made.
When calculating the taxable value, it is proposed to take into account more accurately the property’s location, type, and technical condition, the year of construction, as well as actual prices on the real estate market. The current methodology has not been revised for many years, so the tax assessment of many apartments and houses is significantly lower than their market value.
According to tax consultant Mykola Ivanchev, a reasonable increase in the tax value could be 20–30%. At the same time, he recommends limiting the increase to 20% to avoid placing an excessive burden on property owners, especially retirees and low-income citizens.
As an example, the expert cited an apartment or house in Sofia with a market value of 150,000–200,000 euros, whose tax assessment is approximately 50,000 euros. At the municipal rate of 2 per mille, the owner currently pays about 100 euros per year. After a 20–30% increase in the assessment, the payment could rise to approximately 120–130 euros.
The reform will affect more than just owners’ annual payments. The tax assessment is used to calculate a portion of local taxes, notary fees, and other costs associated with the purchase or sale of real estate. Therefore, an increase in the assessment will make transactions somewhat more expensive even if municipal rates remain unchanged.
Legal experts suggest that rising costs associated with purchasing and maintaining housing could affect demand. Properties that previously attracted buyers with low taxes and operating costs may become less appealing if mandatory payments increase significantly.
Authorities have long delayed revising the methodology due to the high proportion of homeowners. According to estimates by participants in the discussion, over 90% of Bulgaria’s residents own real estate, so a tax increase could trigger significant public and political backlash.
At the same time, the idea of a higher tax on second and subsequent apartments is being discussed. However, experts consider this difficult to administer: about 8–9% of the population owns multiple properties, and the additional costs for municipalities may prove to be comparable to the expected revenue.
Thus, Bulgaria has not yet made a decision to raise the property tax. At this stage, discussions are focused on updating the tax assessment of properties, with the possible implementation of a new methodology starting in 2027. The actual amount of payments will depend on the approved coefficients and rates set by each municipality.
Over the most recent available period—from October 2025 to March 2026—approximately 15,800 housing purchase and sale agreements were concluded in Kyiv, according to data from the National Bank of Ukraine, citing the National Information Systems. This is the highest figure among the country’s regions.
By comparison, approximately 19,100 transactions were registered in the capital from January through September 2025. In the Kyiv region, 17,000 contracts were signed during this period; in the Dnipropetrovsk region, 16,800; and in the Kharkiv region, 14,000.
The NBU notes that in the fourth quarter of 2025, overall activity in Ukraine’s housing market was the highest since 2022; however, in the first quarter of 2026, the number of transactions declined significantly. Cumulatively over the last four quarters, housing sales increased by 11% year-over-year.
The NBU’s figures cover housing purchase and sale agreements in both the primary and secondary markets; therefore, they should not be equated solely with sales of apartments in new construction projects.
