American buyers are driving up European home prices: Report

The southern European residential market is being significantly influenced by Americans, according to a new market report.

New findings published this week by Savills have found that homebuyers from the United States are one of the key factors driving up the price point on premium real estate in that corner of the European continent, Mansion Global first reported.

“Thanks to a comparatively strong dollar and a growing interest in the lifestyle on offer,” Americans are now a “key prospective buyer base” in southern European cities, Savills observed. 

The combination of this foreign demand, paired with domestic demand and a lack of supply, has helped drive the region’s high-end home market to become the best performing in the globe.

Indeed, Savills’ analysis crowned Portugal’s capital city Lisbon the fastest growing sector for luxury-home prices in the world for the first half of 2024. In second place comes Amsterdam — of course, in northern Europe — followed by Madrid and then Athens, with all logging capital value increases over 3%. 

Behind these metros, in fifth place, came Dubai, with a growth rate of 2.9%. 

Meanwhile, stateside, the growth rates are much less rosy. High interest rates have continued to have a negative impact, and prime residential prices fell in three of the four American cities analyzed by Savills. In last place was Los Angeles, where luxury prices have dropped approximately 4%. 

Overall, though, property prices have proven “resilient” during the year’s first half, with the 30 total cities Savills looked at recording an average growth 0.2% higher than last year’s 0.6%. 

Looking forward, urban hubs in southern Europe can expect the outlook to remain sunny. 

“The ongoing supply-demand mismatch for high-end residential product is projected to fuel price growth in European cities such as Amsterdam,” Savills World Research associate director Kelcie Sellers noted, Mansion Global reported. “Lisbon and Barcelona, where 2% to 3.9% is forecast in the second half of 2024.”