Global prime property prices up 11% in 2007

The global market for prime property saw prices increase by an average of 11 per cent in 2007, according to research released today by estate agent Knight Frank.

Between the final quarter of 2006 and the end of 2007 the highest price growth achieved by prime residential properties was in Antigua (40 per cent); St Jean Cap Ferrat, France (39 per cent) and St Petersburg, Russia (38 per cent).

"The strongest growth was demonstrated in the emerging economies, especially China and central and eastern Europe," explained Liam Bailey, head of Knight Frank's Residential Research Department.

"The second area of strong growth was in the global financial centres and second-home hot spots in France, Italy and the Caribbean."

Five of the top ten locations fell into this category with London outperforming all other centres with 29 per cent growth and prices averaging £3,025 per sq ft.

Other financial centres in the top ten were Singapore (31 per cent), New York (25 per cent) and Dubai with 24 per cent growth.

"Rising affluence generates another market: second homes and holiday homes," continued Mr Bailey.

"A growing number of newly prosperous professionals in Moscow and other east European cities want second homes. Affordability constraints mean they are looking to buy in locations such as Bulgaria rather than more established markets like France.

"Buyers of developments on the Black Sea coast of Bulgaria have been 70 per cent Russian, 20 per cent Polish and only ten per cent northern European."

London is the most expensive location for prime residential property with an average price of £3,025 per sq ft, while Monaco is second at £2,877 per sq ft and St Jean Cap Ferrat third at £2,860 per sq ft.

However, in contrast Dublin (-15 per cent); Ibiza (-13 per cent) and Noosa Heads, Australia (-7 per cent), all saw pries dip dramatically over the same period.