In 2008, with falling prices, sluggish sales and currency fluctuations, the credit crunch and global financial crisis have hurt real estate in places that have traditionally been the most expensive markets in the world.
On March 23, Knight Frank released the Wealth Report 2009, a survey of high-end, prime real estate around the world. The findings show big price fluctuations around the world in the 2008 calendar year, and even more dramatic swings from Q3 to Q4. The firm defines prime real estate as: "The most expensive 1% of property in each location. Commonly - but not always - this will relate to the US $1m+ segment - and often will comprise an international client base."
The findings also show that high-end real estate in emerging economies fared the better during 2008, with Bangkok (+22.5%), Jakarta (+17.7%) and Bali (+16.7%) rounding out the top three, and Moscow (+13.1%) not far behind. Some of the biggest losers in the luxury markets were the places that have traditionally been hot-spots for growth, but saw the big drops last year: Singapore (-14.6%), London (-16.9%) and Hong Kong (-24.5%).
So, in the past year of residential turmoil, what prime residential markets have weathered the storm? Stable or rising prices are a good measure of future development and the demand for investment. Click ahead to see the world’s most expensive high-end real estate markets!
By Paul Toscano
Posted 24 Mar 2009