Monaco has the most expensive prime property in the world, costing an average of 55.000 Euros per square metre in 2008 for the best properties. But the prices for prime properties throughout the world are coming under pressure from the credit crunch, according to the latest Knight Frank Prime International Residential Index.
Prime residential properties in London were placed second on the list, despite seeing a sharp fall last year. Properties in Manhattan were the third most expensive, (16.500 Euros), Moscow (16.200) and Paris (16.000).
No Latinamerican city figures among the top ten cities with the highest price per square meter.
The index showed that just under 50% of the locations featured managed to record positive price growth on an annual basis in 2008, although by the final quarter of last year price growth had either stalled or fallen in 75% of locations.
The biggest drops in prime city residential property prices last year, according to the index, were Hong Kong (24.5%) and the so-called Home Counties of England – the suburban areas around London.
The findings were part of the annual Knight Frank/Citi Private Bank Wealth Report, which illustrates that New York and London are likely to remain the world's leading financial centres, but Asian cities are catching up.
London topped the list of the World Cities Survey and poll position for global influence by securing top-five positions in four key ranking criteria: economic activity; political power, knowledge and influence and quality of life.
The top five cities in the ranking criteria are described as follows: Economic Activity: New York, London, Tokyo, Paris and Hong Kong. Political Power: Washington; New York; Brussels; London and Paris. Knowledge & Influence: London; New York; Hong Kong; Tokyo and Paris. Quality of Life: Toronto; Paris; London; Frankfurt and Berlin.
The wealthy might not be sending as much on property now, but the Knight Frank/Citi Private Bank Attitudes Survey shows that almost 55% of high net worth individuals plan to increase their exposure to residential property over the next two years. “In turbulent times the wealthy want their investments to be both tangible and transparent” says the report.
Global farmland prices started to slip last year on the back of falling commodity prices, but remain more resilient than residential or commercial property, according to preliminary findings from the Knight Frank Global Farmland Survey.
Exchange rate fluctuations mean affordability in some countries has increased for US dollar and euro-backed buyers, despite strong price increases in local currencies.
Liam Bailey, head of residential research at Knight Frank, commented: ”The Wealth Report, produced in conjunction with Citi Private Bank, is released at an opportune time. Covering a period of global wealth destruction rather than creation, the report's annual analysis of prime residential property markets and the behaviour and attitudes of the wealthy has become even more relevant”.
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 196 offices, in 38 countries, across six continents. More than 6,770 professionals handle in excess of 700 billion US dollars worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants.
Citi Private Bank, one of the largest private banking businesses in the world, provides personalized wealth management services for clients through 90 offices in 32 countries. Citi Private Bank offers unmatched global reach, coupled with a full range of portfolio management and investment advisory services, an array of structured lending and banking services, as well as expertise from Citi Institutional Client Group.