Across the globe, luxury home prices are up as is the outlook for the luxury residential property market in general. According to the latest report form UK-based Knight Frank, luxury home prices are up throughout the world, with the U.S. leading the charge with key areas such as Los Angeles and New York standing at the forefront of a robust national luxury home market.
The Prime Residential Prices Index report created by Knight Frank tracks price growth in 32 prime residential markets throughout the world. According to the latest data released, luxury residential property prices grew globally by 6.2 percent on average in the year ending in June. The global luxury market is getting stronger by the year as 27 of the prime residential markets recorded positive annual price growth, which was up from 21 markets from one year earlier.
Despite a dismal start to the traditional home market, it seems the luxury market in the U.S. can stand up to even the strongest global markets such as Europe and Asia. North America, with the U.S. being the prime area tracked by the study, posted the biggest gains for luxury home prices with 14.5 percent. North America’s luxury price gains were head and shoulders above the other global markets with the next biggest gain being noted in the Middle East which grew by 7 percent.
Los Angeles Luxury Properties Rank Globally
Helping to bolster North America’s strong showing in Knight Frank’s rankings are the singular metropolitan areas where luxury markets have been booming. Los Angeles was one of those metro areas, coming in at No. 4 in the Prime Global Cities Index for the second quarter of 2014. Sunny Los Angeles exhibited a 12-month luxury price growth of 17.8 percent.
Los Angeles followed only one other North American city, New York, as well as burgeoning global powerhouses Jakarta and Dublin. While growth in the luxury residential markets in New York and Los Angeles is long-standing, making these cities mainstays on the list, Jakarta and Dublin are both new to the luxury game as their economies are posting increases from dramatic lows just a few years ago. Dublin, in particular, has seen a tremendously improved economy over the last few years and is expected to post solid increases in prime markets for quite some time.
In addition to Los Angeles and New York, the U.S. had two more cities in the top 10 rankings. With Miami trailing in the No. 5 spot and San Francisco farther down at No. 7, the U.S. had the strongest showing of prime residential markets, a factor that has been improving from quarter to quarter lately.
“This trend has continued in the second quarter with New York, Los Angeles, Miami and San Francisco all recorded double-digit annual price growth, placing them in the top 10 rankings,” remarked Kate Everett-Allen, head of International Residential Research at Knight Frank.
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