House Buying Blog

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Most Expensive Cities to Buy Property

May 9th, 2007

Illuminating new research from Knight Frank/Citi Private Bank has discovered that London is officially the most expensive city in the world in which to buy property. London has fended off traditionally expensive cities such as New York, Tokyo and has even outstripped prices in Monaco.

The research suggests that pricing for £1 million plus homes has been fuelled not only by wealthy foreign individuals (59% of the luxury property market in London) but also by the large City bonuses on offer.

The top 20 most expensive cities to buy a property (£ per square foot) are -

London
2,300
Monaco   
2,190
New York
1,600
Hong Kong
1,600
Tokyo   
1,100
Cannes   
940
St Tropez
930
Sydney   
820
Paris   
790
Rome   
780
Moscow   
770
Venice   
670
St Petersberg
650
Florence   
540
Geneva   
500
Madrid   
470
Dublin   
470
Milan   
420
Birmingham   
420
Mumbai   
410


Property Boom or Bust for our Favourite Hotspots?

May 2nd, 2007

Last week sent waves of panic through the worldwide property market as a large scale panic selling of Spanish real estate stocks prompted fears of a property crash based on the belief that the boom in Spanish property was over. Only time will tell as to whether the investors were wise to dump their stocks in Spanish property, however, are there also concerns for our other favourite investment hotspots?

Latvia

Latvia has been a star performer in terms of property over the past couple of years. Last year saw house prices increasing in the capital Riga by an astonishing 66% overall. Since joining the EU in 2004, the country has become a magnet for canny investors from major European nations wishing to get in on the property market at rock bottom. This fuelled a rush in external investment in the country. There is a worry that the market is currently overvalued and foreign investors will want to sell out quickly at a premium so that a new hotspot can be uncovered. This is an issue that the Latvian government seems very aware of and it has been announced that they will be introducing new legislation that will tax the profits of the sale of real estate within the first three years of ownership – this is an extension of the current rule which allows taxation within the first year.

UK

Confounding experts the UK property market continues to be a strong investment candidate even though experts are predicting the Bank of England will increase interest rates twice during this year. Nevertheless, the property market is still buoyed by the buy to let market and it is not expected that there will be a property crash, rather there will be a slight slow down as a consequence of the expected interest rises.

Spain

After five years of double digit growth in the property market, 2006 saw a more modest return of 9% and gains are expected to be lower this year. This can be partly attributed to increased competition from cheaper property investment destinations and the recent admission of several European nations into the EU, which caused a flood of investment. An old favourite of the British investor, Spain still has an enviable property investment market, but the time of large gains may well be over.

 

 
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