Fresh real estate industry research shows that growing demand from rich international buyers, particularly billionaires, it creates a new global super class of residential property in some of the world’s metropolises.
Despite the global economic downturn, these high-end global destinations continue to attract high net worth home buyers. According to the latest Savills Research global billionaire property index shows, luxury home prices in the top ten cities have increased by 10% in the first six months of 2011, compared to the corresponding period last year.
Hong Kong is the most expensive place to buy a home globally in value terms, with average property prices estimated at US $10441 sq ft, up 83% from December 2005 to December 2010 and an additional 10% on top of that to the end of June 2011.
In second place is Tokyo at US $8.080 sq ft, followed by Paris at US $7,950 sq ft and London at US $ 4,800 sq ft.
There has been significant capital growth in emerging markets. Moscow ranked fourth in the index. Home values in the Russian capital increased 110% from December 2005 to 2010 and a further 2% increase this year to take it to US $3930. Singapore has seen a 144% and 16% rise, while Mumbai has appreciated 138% and 7%.
The 10% average prime property price growth recorded in the top cities worldwide compares to average price growth of 6% for ordinary properties in the same cities.
Global billionaires can make any country their home, and often have several different residences across the globe. Most of them seek a base with superbly developed business. infrastructure as Dubai. This has the effect of funnelling global equity into the very best residential real estate, a rare commodity in any city. Billionaire buyers demand the best international standards of accommodation and are paying prices to match, creating a super class of global billionaire homes around the world.
Top 10 ‘World Class’ cities: Hong Kong, London, Moscow, Mumbai, New York, Paris, Singapore, Shanghai, Sydney and Tokyo.