Seoul's Luxury Apartment Prices Forecast to Lead Global Growth at 11% Amid Supply Shortage
European real estate investment volumes are projected to rise 6% year-on-year in Q2 2026, with prime yields expected to remain stable across most sectors.
The story
The South Korean capital's luxury residential market is poised for significant growth, with global real estate firm Knight Frank's "2026 Global Residential Trends" report, released on July 23, forecasting an 11% increase in Seoul's top-tier apartment prices this year. This projection positions Seoul as the leader among 20 major global cities, driven by a persistent shortage of new housing supply and strong demand from affluent domestic and international buyers. Meanwhile, local reports on July 23 highlight a "balloon effect" in Seoul, where mortgage restrictions in expensive central districts are pushing prices higher in outlying neighborhoods. For instance, a newly built apartment in Seongbuk District recently sold for 2 billion won ($1.44 million), marking a nearly 300 million won increase in just six months.
Across Europe, investment activity is picking up. Savills' latest research, published July 22, indicates that European real estate investment volumes are expected to reach €53 billion in Q2 2026, representing a 6% year-on-year increase. Notably, Poland and Finland saw investment activity almost double compared to the first half of last year, with increases of 95% and 94% respectively. James Burke, Director of Global Cross Border Investment at Savills, anticipates prime yields will remain stable across most sectors and countries through the remainder of 2026.
G20 + UAE this cycle
| Country | Price Yoy Pct | Prime Yield Pct | Mortgage Rate Pct | Direction |
|---|---|---|---|---|
| South Korea | 13.47% | tightening |
UAE corner
Emaar Beachfront's new launch has been identified as "Palace by the Beach," a waterfront development in Dubai Harbour featuring 861 residences, with 1-bedroom apartments starting at approximately AED 3.80 million (USD 1.03 million). The first half of 2026 recorded Dubai's largest project-launch wave in history, totaling roughly AED 275 billion in new and announced projects.
Alyakka delivered its first freehold project, Waha Living, on schedule on July 23, 2026, comprising 71 residences in Jumeirah Garden City. No new Golden Visa policy changes were reported in the past three days.
Residency-by-investment
Portugal Golden Visa
Country: Portugal
Threshold: €200,000 (cultural donation) or €500,000 (fund investments)
What Changed: Nationality law revisions approved July 23, 2026, extending general citizenship eligibility to ten years for most applicants, with the period starting from residence permit issuance.
Greece Golden Visa
Country: Greece
Threshold: €250,000, €400,000, or €800,000 (real estate, depending on location/type)
What Changed: Law 5275/2026 (February 6, 2026) fully implemented a start-up investment route and aimed to streamline application processes.
UAE Golden Visa
Country: UAE
Threshold: AED 2 million
What Changed: No new policy changes reported this cycle; remains popular for speed and tax efficiency.
Spotlight country
South Korea's housing market, particularly in Seoul, is experiencing a notable "balloon effect" where mortgage restrictions in expensive central districts are redirecting demand and driving prices higher in outlying neighborhoods. A newly built apartment in the Seongbuk District, central Seoul, recently sold for 2 billion won ($1.44 million), showing an increase of nearly 300 million won in just six months.
This trend is further supported by Knight Frank's "2026 Global Residential Trends" report, released July 23, which forecasts Seoul's luxury apartment prices to grow by 11% this year, the highest among 20 global cities. The proportion of mortgage loans in Seoul strata property transactions also reportedly fell 7.29 percentage points in one year to 45.67%.
What we'll be watching
- Final reading of the Eurozone Consumer Confidence Index for July 2026.
- US Existing Home Sales data for July 2026, to be released on Tuesday, August 11, 2026.
- US Pending Home Sales data for June 2026, scheduled for release on Tuesday, August 18, 2026.
- Upcoming Q2 2026 official transaction reports from the Dubai Land Department.
Reporting + analyst voices: grounded via Google Search at publish time.