![\"\"](\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\"){kind=logo}
\n ADVERTISEMENT<\/p>\n
House prices are rising across Europe. Luxury homes are no exception. Prime property prices are on the move in European cities. In more than half of the roughly 50 cities tracked by Knight Frank’s Wealth Report 2026, annual price growth exceeded 3% in 2025.<\/p>\n
\n ADVERTISEMENT<\/p>\n
\n ADVERTISEMENT<\/p>\n
So, which cities are driving the surge in prime property prices across Europe? And how do European luxury markets compare with the rest of the world?<\/p>\n
Prime properties are the most desirable and most expensive property in a given location. It is generally defined as the top 5% of each market by value. Prime markets often have a significant international bias in terms of buyer profile.<\/p>\n
Prague saw the highest increase<\/p>\n
Knight Frank’s Prime International Residential Index tracks 100 cities worldwide, 47 of them in Europe. Prague, the capital of Czechia, recorded the strongest growth among European cities, with prices rising 14.6% in 2025.<\/p>\n
France’s M\u00e9ribel (9%), Portugal’s Porto (8.5%) and Spain’s Marbella (8.1%) also saw strong gains, each posting rises above 8%.<\/p>\n
Another French ski resort, Courchevel 1850, also saw a strong rise of 6.9%.<\/p>\n
Italy’s Florence and Lake Como recorded increases of 6.7% and 6.5% respectively. <\/p>\n
Switzerland’s Gstaad (5.5%), Italy’s Rome (5.5%) and Portugal’s Quinta do Lago (5.2%) all posted rises above 5%.<\/p>\n
The top 10 European cities in the index share a common thread: Alpine ski resorts, Portuguese golf retreats and romantic cultural cities dominate the list.<\/p>\n
London saw the highest decline in Europe<\/p>\n
Not all European cities saw gains. London recorded the steepest decline, with prime property prices falling 4.7% in 2025. <\/p>\n
\u201cLondon is evolving as shifts in tax rules on wealthy residents push budgets lower and encourage some to consider renting rather than buying,\u201d the report said. <\/p>\n
Ibiza, Jersey and Lausanne also saw modest drops of between 1% and 2%.<\/p>\n
Among other European capitals, Madrid (5%), Oslo (4.2%) and Berlin (3.4%) posted solid gains. Growth was more modest in Lisbon (2.7%), Dublin (2.3%), Vienna (1.3%), Paris (1.3%) and Bucharest (0.4%). Stockholm saw a slight decline of 0.7%, while prices in Edinburgh remained flat. <\/p>\n
Lifestyle and resort destinations winners<\/p>\n