The World’s Most Expensive Real Estate Markets

In 2008, with falling prices, sluggish sales and currency fluctuations, the credit crunch and global financial crisis hit real estate in what has traditionally been an expensive market. best of the world.

On March 23, Knight Frank released the 2009 Wealth Report, a survey of prime, prime properties around the world. The findings show large price movements around the world during the 2008 calendar year, and even more volatile from Q3 to Q4. The company defines prime real estate as: “1% of real estate. most expensive property in each location. Usually – but not always – this will involve the US$1 million or more segment – and will typically include an international customer base.”

The results also show that luxury real estate in emerging economies outperformed in 2008, with Bangkok (+22.5%), Jakarta (+17.7%), and Bali (+16.7). %) is in the top three, and Moscow (+ 13.1%) is not far away. Some of the biggest declines in luxury markets are those that have traditionally been hot spots for growth, but saw big declines last year: Singapore (-14.6%), London (-16). .9%) and Hong Kong (-24.5%). ).

So, in the past year of residential turmoil, which prime residential markets have weathered the storm? Stable or rising prices are a good measure of future growth and investment needs. Click ahead to see the world’s most expensive luxury real estate market!

By Paul Toscano
Posted March 24, 2009

Australia’s most populous city saw a -11.9% drop in prime property prices throughout 2008, but was somewhat able to counter the severe declines in other markets during the quarter. the end of the year, with a relatively modest drop in prices – 6.4 percent. Sydney has the 10th most prime real estate in the world, at $1,440 per square foot.

In Singapore’s microcosm of Southeast Asia, space is an extremely limited commodity, and prime real estate is even harder to find in a country approximately 3.5 times the size of Washington DC. However, Singapore was one of the main real estate markets hardest hit in 2008, according to the 2009 Wealth Report, with prices falling -14.6%, with a relatively low decline of -2, 2% in the last quarter.

The luxury real estate market in Rome was quite stable in 2008 and actually grew throughout 2008. For the year as a whole, luxury property prices increased by 1.4% in Rome, with an increase. +0.4% growth in the last quarter.

The main real estate market that was hit the hardest in 2008 was the financial hub of Hong Kong. As one of the most densely populated regions in the world, it is also the world’s most depreciating place in terms of property prices. With Hong Kong’s premium prices falling -24.5 per cent in 2008, the most dramatic moves of the year occurred in the final quarter, a staggering -26.6 per cent drop. Even at a loss, luxury real estate in Hong Kong still made it into the top 10, with a price tag of $2,060 per square meter.

Japan’s capital and largest city experienced a major decline in property prices of -5.4% in 2008, with a decline of -4.4% in the last quarter. With a modest drop, Tokyo came in at sixth place, with high-end real estate raking in $2,080 per square foot.

Paris, France and Berlin, Germany were the only European cities to see luxury property prices in their regions remain truly stable in the last quarter of 2008, with no percentage fluctuations. Last year also saw Paris’ growth in the calendar year, with base prices rising in the city +3.8 percent in 2008. With luxury property prices very close to the Hong Kong and Tokyo markets , the stability of Paris has allowed it to rise to #5 spot, $2,100 per square foot.

Moscow is the most overvalued example of how luxury real estate in emerging markets has been able to continue to grow. The Wealth Report 2009 indicates that Moscow’s successful price increase is due to the relatively small size of the city’s main market area and the rise of high net worth buyers. Although prices had accumulated a +13.1% increase in 2008, Moscow’s growth tended to decline towards the end of the year, with prices falling -5.6% in the final quarter.

The financial capital of the world is no longer a capital for luxury real estate. The survey took into account real estate in Manhattan, which has a large portion of luxury real estate. The third most expensive prime real estate in the world is found in Manhattan, with an average of $2,160 per square foot. In 2008, the city lost -4.1% of its value for the whole year, with a -3.2% decline in the final quarter.

London’s luxury property prices are among the hardest hit in the world, but compared to other major markets around the world, London remains very high, with prices almost double the location. 7th in Rome. London’s top property prices fell -16.9% in 2008, with a -9.4% drop in the final quarter. Despite the loss, luxury spaces in London will cost you an average of $3,670 per square foot.

The world’s most expensive luxury housing market is Monaco, with a staggering average of $6,550 per square foot of prime real estate. Understandably, space is an extremely scarce commodity in Mediterranean Monaco, with an area of ​​1.95 square kilometers, or just over 0.75 square miles. For reference, that’s about three times the size of the Mall in Washington, DC. With property prices three times as high as New York, you’d think there could be a bubble in Monaco’s luxury market. Incorrect. In fact, in 2008, Monaco’s main property price increased by 2.1%, despite a significant -10.7% drop in the last quarter of the year.

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