Luxury homes make some people dream. These homes are known to be in the best location that a city has to offer. Only the highest quality materials are used to finish luxury homes and no detail is left out. A luxury home can include amenities such as a spa, games room, movie theater, or indoor pool, and maintaining the resident’s privacy is of the utmost importance in its design. Such features come at a high price, and in some places the price is higher than in others.
This article takes a closer look at the 10 most expensive cities in the world for buying luxury homes, according to the Prime Global Citizen Index for 2017. This index compares the cost of luxury homes in 41 cities, as well as the price increases over periods 3, 6 and 12. For reference, the increase in the average price between June 2016 and June 2017 was 4.4%.
1 Melbourne, Australia
Melbourne, Australia is the most expensive city in the world for luxury homes. This urban area, the second most populous, is also known to have one of the highest costs of living in the country. According to statistics, the price of luxury homes does not seem to be intended to drop rapidly. For the period of 10 between December 6 and June 2016, the average cost of luxury residences increased by 2017% in Melbourne. A slightly lower increase of 4.8% was observed between March and June from 3.3. The annual average was, however, a 2017% increase.
2. Cape Town, South Africa
The most expensive city in the world for luxury homes is Cape Town, South Africa. The most expensive area in this city is Clifton, where you can find a large number of luxury homes. The average house price in Clifton is around $ X million. The cost of luxury properties in this city continues to grow, with an average annual increase of 9% between June 2.53 and June 9.2.
3. Berlin, Germany
Berlin, the capital and the most populous city in Germany, is the most expensive city for the purchase of luxury houses. We have known for a long time that this city has high property prices. In fact, the country’s most expensive luxury apartment (per square foot) was sold in Berlin in 8 at just over $ 2016 per square foot. Those looking for a luxury home in Berlin should not expect relief anytime soon. The prices of luxury houses increased in this city by 2.100% between June 9.7 and June 2016. In just 2017 between December 6 and June 2016, the increase was recorded at 2017%.
4. Madrid, Spain
Madrid, the capital of Spain and one of the most populous cities in the European Union, is the most expensive city in the world for the luxury home market. Real estate investors viewed this city as a relatively stable investment location during the recent global economic crisis and, as a result, the number of luxury homes sold increased by 7% in 25. The most expensive neighborhoods in Madrid are: Salamanca, Chamberi and Jeronimo. The high demand for these houses influenced the average purchase price, which increased in 2015 between June 10.7 and June 2016.
5. Sydney, Australia
Sydney has the largest population in Australia and is the capital of the state of New South Wales. This city is known for its high real estate prices. In fact, a simple patch of undeveloped land was considered more expensive than a completed luxury home in Brisbane. Between 2014 and 2015, prices for the entire Sydney property market increased by 13.7%, partly due to high demand and insufficient supply. This increase is no exception in the luxury market, where the average cost of housing rose 11.5% between June 2016 and June 2017.
6 Beijing, China
Beijing, the capital of China, has one of the most expensive property prices in the world, compared to average household income. This city has seen a dramatic increase in the average price of homes in the past 7 years, an astonishing feat for a place where the real estate market was previously thought to be non-existent. Between June 2016 and June 2017, the price of luxury homes in this city increased by 15%. Although this percentage is quite high, it actually represents a decrease compared to previous years, where the strongest annual growth was recorded at 22.9%.
The government and property developers have focused on reducing the construction of luxury homes in this city. In the third quarter of 2016, the city did not report any newly constructed luxury apartments. The housing supply remained unchanged during this period, indicating a possible slowdown in demand.
7 Shanghai, China
Shanghai, China is the 4 most expensive site for buying luxury homes. The trend is similar to that observed in Beijing. In other words, prices continue to rise, but at much lower percentages than in previous years. The increase in the prices of luxury real estate in this city has been greater than that of Beijing. Between June 2016 and June 2017, Shanghai experienced an increase of 19.7%.
8. Seoul, South Korea
Seoul, the capital of South Korea, takes 3rd place on this list due to the very sharp increase in prices for luxury homes. The annual average between June and June of 2016 increased at the rate of 2017%. Like other Asian cities, this percentage increase, although high, actually represents a slowdown in prices for luxury homes. This slowdown is partly explained by the fact that the city has an abundance of housing on the market and that the government has recently implemented more stringent guidelines for loans and mortgages.
9. Toronto, Canada
Toronto, Canada is the only city on this list located in North America. The prices of luxury real estate in this city increased by 20.7% between June 2016 and June 2017. Despite this above-average increase, sales of luxury homes in Toronto have not slowed. Instead, sales of luxury homes, with price tags of 4 million or more, almost doubled between January and June of 2017.
10. Guangzhou, China
The biggest increase in the price of luxury homes was reported in Guangzhou, the third most populous city in China. In this city, the cost of luxury real estate increased by a breathtaking 35.6%. Construction of these homes continues at an above average speed, with no signs of slowing down.