Hot Luxury Markets Around The World
Here's some perspective for those who are wondering if the domestic market will ever turn. As if to illustrate that real estate cycles are exactly that, cyclical, Business Week posted an article on May 31st, 2008, The Most Expensive Real Estate in The World. Some quick facts: London celebrates its lofty status as the most expensive market in the world with a whopping $6,191 as the average price per square foot. What do you get in this sprawling metropolis for 1.5 million dollars? In the tonier parts of town, a small studio. In Italy, a two bedroom apartment will be yours for the same money if you're looking for digs close to Venice's Grand Canal.
Not every market is booming, though. After years of robust growth and appreciation, Dublin's prices are down 15% this year. However, St. Petersburg, Russia, continues to buck the trend with a 38% increase in 2007 which pales in comparison to its 95% appreciation rate in the 2006. Why does London lead booming luxury markets in Europe? The British capitol has become the financial world's European hub. This combined with a burgeoning population of millionaires heralding from newly revved-up economies in Russia, the far and near East, is leading to hyper-accelerating property values in high-end real estate.
Supply and demand economics continue to reign around the globe. I view this in a positive light relative to our own recent downturns. We've seen slumps before and will again. In the meantime, perhaps you may want to invest in one of the World's most expensive luxury markets:
1.) London - $6,191 per sq. ft. $1.5 million buys a studio apartment. Annual appreciation rate - 29%
2.) Monaco - $5,888 per sq. ft. $1.5 million buys a studio apartment. Annual appreciation rate - 25%
3.) St. Jean Cap Ferrat (France) - $5,853 per sq. ft. $1.5 million buys a small studio apartment. Annual appreciation rate - 39%
4.) Courchevel (France) - $4,710 per sq. ft. $1.5 million buys a small studio apartment. Annual appreciation rate - 5%
5.) Hong Kong - $4,507 per sq. ft. Upgrade with $1.5 million to a studio apartment. Annual appreciation rate - 25%
6.) Manhattan - $4,320 per sq. ft. $1.5 million buys a studio apartment. Annual appreciation rate - 25%
7.) Cortina d'Ampezzo (Italy) - $3,028 per sq. ft. Move into a one bedroom apartment with $1.5 million. Annual appreciation rate - 22%
8.) Potofino (Italy) - $2,692 per sq. ft. $1.5 million buys a one bedroom. Annual appreciation rate - 14%
9.) Singapore - $2,423 per sq. ft. $1.5 million buys a one bedroom. Annual appreciation rate - 31%
10.) Tokyo - $2,334 per sq. ft. $1.5 million gets you a one bedroom. No appreciation rate published.
