Property prices have reached all-time highs due to demand from high-net-worth individuals, according to a new report by Christie’s International Real Estate.
The report, ‘Luxury Defined: An Insight into the Luxury Residential Property Market‘, features the first-ever Christie’s International Real Estate Index, an in-depth comparison of high-end property in the ten top markets. Locations in the list include New York, Paris, Hong Kong, the Côte d’Azur and Miami, with London heading the list.
“With financial markets providing a limited return on investment, high-net-worth individuals are recognising the intrinsic value of investing in non-consumable assets such as prestige real estate and fine art,” says Christie’s International Real Estate CEO Bonnie Stone Sellers.
Among the findings of the report were the immunity of top-tier property to the troubled economies of lower markets, and the close relationship of property value growth and luxury goods trends. It also revealed the preference of high-net-worth individuals to invest in a foreign city rather than their home country for extra properties.
Factors determining each city’s place in the top ten list included record-breaking sales, prices per square foot, percentage of non-local and international purchasers, and luxury listings per member of the population.
London’s record 121 million (£75 million) sale secured its place at the top, with New York’s $88 million sale also impacting.