Swiss and Iberian cities lead Europe’s prime growth

In Knight Frank’s latest Q1 2026 Prime Global Cities Index, Zurich and Geneva, alongside Madrid and Lisbon, rank among the top 15 global performers out of 46 cities over the past year.

Of the European markets tracked, Zurich leads with annual growth of 4.8% in Q1 2026 (year-on-year), followed by Madrid, Geneva and Lisbon. On a quarterly basis, all four markets recorded growth of between 1% and 1.5% compared with Q4 2025.

Swiss and Iberian cities are setting the pace in Europe due to strong international demand, supportive financing conditions, as well as sustained wealth inflows into Switzerland underpinned by its stable tax environment, and the relative value and lifestyle appeal of Iberian markets.

Across both one and five-year horizons, European prime residential markets sit in the middle of the global ranking, characterised by stable performance. Annual price growth remains moderate, with most cities recording increases of around 1%–5%.

This places Europe behind stronger-performing regions such as parts of Asia, but ahead of weaker or declining markets.

Europe holds the middle ground, with clear standouts

Over the five-year period, European prime residential markets are clustered in the middle of the global distribution, with gains in the 20%–35% range.

Milan ranks as Europe’s strongest performer, with prime prices up 36.2% between Q1 2021 and Q1 2026, supported by growth in its wealthy population and the appeal of its flat tax regime to high-net-worth buyers, followed by Madrid (29.7%) and Zurich (27.5%).

London is the only market to record a decline over the same five-year period (-5%), weighed down by high stamp duty, the removal of non-dom tax status and elevated borrowing costs.

Overall, Europe presents a picture of stability, with moderate growth and less volatility than many global peers.

The Prime Global Cities Index (PGCI) tracks the movement of prime residential prices across 46 cities worldwide using data from Knight Frank’s global research network. The index is valuation-based and tracks nominal prices in local currency.

Knight Frank currently tracks 14 European markets: Berlin, Bucharest, Dublin, Frankfurt, Geneva, Lisbon, London, Madrid, Milan, Monaco, Paris, Stockholm, Vienna and Zurich.