05 March 2015
London, UK - The value of luxury residential property around the world rose on average by just over 2% in 2014, according to Knight Frank's Prime International Residential Index (PIRI).This compares with growth of almost 3% in 2013.

The index was pulled back by flat or negative growth in 40 of the locations covered by PIRI, which now includes 100 key city and prime second-home markets, and is recognised as the sector's most comprehensive performance benchmark.

However, 16 markets, led by New York (+18.8%), did achieve double-digit growth last year. Three other prime US markets, Aspen (+16%), San Francisco (+14.3%) and Los Angeles (+13%), fuelled by strengthening domestic and international demand, also made it into the top 10 of the index.

Detailed results

Outside the US, Bali, the leading Asian second-home market, and the emerging Middle- Eastern urban powerhouse of Istanbul, were stand-out performers with luxury prices up by 15% year-on-year in both markets.

The disparity between the performance of North America and Europe's cities is stark. Luxury prices rose by almost 13% on average across US cities last year, compared with an average of only 2.5% in Europe, though Dublin completed a remarkable turnaround with an increase of over 13%.

Some previously strong markets such as Dubai (17% growth in 2013) saw prices slow markedly (0.3% in 2014). This is in part due to the UAE Central Bank's mortgage cap, which is stricter for those purchasing properties above five million dirham.   

The dampening impact of this kind of prudent macro policy also explains the ongoing weak growth seen in Hong Kong (+1.1%) and Singapore in 2014 (-12.4%).

Mainland China mirrored this trend with prime price growth in Shanghai (0%), Beijing (-0.5%) and Guangzhou (0.6%) proving lacklustre at best.

Kate Everett-Allen, Head of International Residential Research, said: "Despite the more muted performance of the PIRI 100 this year, luxury housing markets continue to outperform their mainstream counterparts.

"The average price of a luxury home is 38% higher than it was at the index's lowest point in the second quarter of 2009; the average price of mainstream global property has risen by just 14% over the same period."





Most expensive property

Monaco - for the eighth consecutive year - is confirmed as the most expensive city to buy luxury residential property, with US$1m buying just 17 square metres of accommodation. Hong Kong and London occupying second and third place aren't far behind. US$1m would buy 20 and 21 square metres, respectively.



* Based on apartments

For further information, please contact:
Press@knightfrank.com

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank, together with its US alliance partner, Newmark Grubb Knight Frank, operate from 370 offices, in 55 countries, across six continents and has over 12,000 employees. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit knightfrank.com.


© Press Release 2015