Savills Research
Savills World Cities
Prime Residential Index H1 2026
Savills World Research tracks prime residential capital values and rents across 30 leading cities. The first half of 2026 shows a market that is moderating, but holding its value, with Southern Europe among the strongest performers.
+0.6%
Average prime capital value growth, six months to June 2026
+1.1%
Average prime rental growth over the same period
60%
Share of cities recording positive capital value growth
Inside the Report
Thirty cities, one clear theme: local fundamentals decide
- Global overview — resilient demand supports prime residential markets despite geopolitical uncertainty and cautious buyer sentiment
- Capital values — Tokyo led with 7.0% growth in six months and 20.4% over the year, followed by Cape Town at 4.7% and Seoul at 4.1%
- Southern Europe — Lisbon, Madrid, Barcelona, Athens and Rome all recorded positive capital value growth, with Lisbon and Geneva above 3.0%
- Rents and yields — Cape Town and Lisbon were among the strongest rental markets; yields compressed in Lisbon as capital values outpaced rents
- Prime values compared — average prime capital values per square metre across all 30 cities, from Hong Kong to Cape Town
- Regional chapters — EMEA, Asia Pacific and North America, including the structural supply constraints driving growth
- Outlook — local market fundamentals are set to outweigh global influences in the second half of 2026
Published by Savills World Research (foreword by Victoria Garrett, Head of Global Residential excluding UK). Shared by QP Savills, the Savills International Associate for the Algarve, with almost 30 years of experience across Quinta do Lago, Vale do Lobo and the Central Algarve.
Why It Matters
Portugal’s prime market is among the world’s steadier performers
Lisbon is one of only a handful of cities in the index to combine capital value growth above 3.0% with some of the strongest rental growth of any world city. The report attributes the outperformance of Southern European cities to constrained supply, continued wealth creation and sustained international demand, the same forces we see at work in the Algarve’s Golden Triangle.
The Savills outlook for the second half of 2026 is that local fundamentals will matter more than global headlines. That is exactly where an agent with almost 30 years in Quinta do Lago, Vale do Lobo and the Central Algarve adds value. Whether you are buying, selling or simply following the market, our team is happy to share what these trends mean for your property.