Price growth of luxury real estate in major cities across the world slowed to a halt in the third quarter as the darkening outlook for the global economy and summer holidays resulted in a lull in sales.
The Knight Frank Prime Global Cities Index, which tracks movement in luxury residential prices across 33 cities, rose just 0.2 percent over the July-September period, the weakest pace in two years. Prime residential is defined as the top 5 percent of the wider housing market in each city.
"This moderate level of price growth is partly attributable to the fact that the third quarter, for much of the world, is dominated by the summer holiday season which often sees slower sales activity reducing the pressure on prices," said Kate Everett-Allen, head of international residential research for Knight Frank.
Key events on the political and economic stage also likely contributed, she said, citing the prospect of tightening monetary policy in the U.S., the persistence of cooling measures in key Asian cities and most pivotally, negative economic indicators from Europe.