A new study by Deluxe Holiday Homes ranked the top ten cities with the most stable real estate markets. The analysis focused on rent prices for 1-bedroom apartments in both city centers and surrounding areas, alongside apartment purchase prices per square meter. The key factor for ranking was the minimal change in both rent and property prices over three-year period, with cities showing the most consistent price movements (near 0%) being prioritized.
Findings summed up
| Cities | Country | Rent change 2021-2023 | Property buying price change 2021-2023 | Average of Rent and purchase |
| Buenos Aires | Argentina | -13.54% | 13.10% | -0.22% |
| San Francisco | United States | 8.22% | -7.69% | 0.27% |
| Dubai | United Arab Emirates | 0.80% | 0.00% | 0.40% |
| Paris | France | -7.85% | 8.71% | 0.43% |
| Seattle | United States | 9.77% | -11.40% | -0.81% |
| Porto | Portugal | -6.32% | 8.46% | 1.07% |
| Sao Paulo | Brazil | 14.03% | -11.22% | 1.40% |
| Tel Aviv | Israel | 6.58% | -10.07% | -1.74% |
| Bangkok | Thailand | -6.93% | 2.88% | -2.03% |
Buenos Aires, Argentina, ranks first among the most stable real estate markets, with a very minimal overall change of -0.22% in two years. Rents here dropped by -13.54%, but property prices climbed by 13.10%. These results indicate a strong demand for property ownership despite challenges in the rental market.
San Francisco, United States is second. Its market shows signs of cooling, with an overall modest change in rent and property prices at 0.27%, which also reflects a more balanced market than many expected in this high-demand city. Rent prices increased by 8.22%, while property prices dropped by -7.69%. The slight price drops suggest that the market is adjusting to post-pandemic trends.
Dubai, United Arab Emirates, takes third place and stands out for its remarkable stability with an overall price change of 0.4. While rents here increased by just 0.80%, property prices remained unchanged over the two years.
Paris, France, is fourth. The city’s real estate market has experienced fluctuations, but the overall change is a steady 0.86%, suggesting it remains a desirable market for both renters and buyers. The shift from renting to buying could indicate changing consumer behavior as affordability issues impact the rental market.
Seattle, United States, takes fifth place but reflects a more volatile market with an overall decline of -0.81%. The city has witnessed a substantial rise in rents, up by 9.77%, while property prices have dropped by -11.40%, the highest percentage drop among the cities analyzed.
Porto, Portugal ranks sixth, with a slight overall increase of 1.07%, which signals a steady growth in the real estate market. Property prices rose by 8.46%, while rents experienced a modest decline of -6.32%, indicating a preference for ownership in this growing European hub.
Sao Paulo, Brazil, comes in seventh, with an average rent and property price change of 1.40%. However, if we break this down, the city experienced the sharpest rental growth on the list, with rents climbing by 14.03% and the most decline in property prices at -11.22%.
Tel Aviv, Israel ranks eighth, with an overall decline of -1.74%, reflecting a mixed market. While rents increased by 6.58%, property prices dropped significantly by -10.07% over the two years, which suggests a market adjusting to shifting economic conditions.
Bangkok, Thailand, rounds out the list, with an overall decline of -2.03%. Rents fell by -6.93%, and property prices rose slightly by 2.88%, indicating a subdued market with limited demand in both sectors.
A spokesperson from Deluxe Holiday Homes commented on the study: “The most stable real estate markets tend to show minimal fluctuations in both rents and property prices. Markets with steady property prices and modest rent growth exemplify resilience in the face of global economic shifts. Conversely, areas with significant rental increases paired with property price drops reveal evolving trends where rental demand plays a dominant role. This underscores the importance of monitoring both rent and purchase price stability when assessing long-term investment opportunities.”
