Demand for residential property goes up
The top-end of the global property market is likely to see double-digit house price growth in 2007 as the growth in wealth among the rich is boosting demand for residential property investments across the globe.
UK-based property group Knight Frank, said in their recent report – The Wealth Report – that the world’s serious money is chasing bricks and mortar investments more than ever before. They said that there is a growing demand for owning secondary homes in prime locations and they expect prime property markets across the globe to outperform mainstream markets during this year.
Central London is expected to remain a key destination for the world’s wealthiest property investors, and has seen a house prise rise of 33.3% in the 12 months ended May 2007 (y/y). The broader UK housing market has seen a 10% price increase for the same period. This being said, it is still expected that the less explored areas such as Brazil, Russia, China and India will see a lot of money coming in from property investors.
St Petersburg was the world’s best performing city last year in terms of total returns, followed by Moscow, Delhi and Mumbai, based on top-end properties located in more than 70 prime markets worldwide. Cape Town was rated as the world’s fifth best performing city.
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