Last year was a mixed one for the world’s most important prime residential markets. At one end of the scale, we saw prices in Vancouver rise by almost 25%, with nine other cities – among them Monaco, Shanghai, Sydney, San Francisco and Istanbul – also posting double-digit growth. At the other end of the league table is Lagos, which saw a drop of 20%.
This performance disparity across the 100 locations covered by our Prime International Residential Index (PIRI) highlights the many factors playing out around the world that affect prime property markets. Some, such as second-home locations in Italy and France, are gradually recovering from the impact of the global financial crisis, while others, such as London, have already reached new heights. However, on a more positive note, fewer locations saw values fall than in 2014.
Governments are still vying with the increased mobility of global wealth in a bid to increase tax take and transparency, and our Prime Numbers article looks at how these issues will develop in the longer term.
Given the growing complexity and nuances of the current marketplace, deciding where to invest for the future is not an easy decision. Our Global Hotspots article may help: it lists for each of five categories three locations we believe have the potential to outperform the average – at least in the short term.