The world's most expensive city from the point of view of real estate prices is Hong Kong. The Asian city holds the leadership on this index since 2005. Prices on real estate in Hong Kong are 107% higher than the average prices in ten other largest cities of the world. Real estate prices in other major cities of the world are lowest in India's Mumbai. They are 43% lower than average prices in the cities of the top ten.
The information was presented in World Class Index by Savills, which reflects the situation on real estate markets in largest cities of the world.
Real estate in Hong Kong is 63% more expensive than in London. The British capital comes second on the list with Tokyo, Singapore and Paris following. Singapore showed a considerable growth during the recent 5.5 years - 123%. The city-state climbed from the 7th place in 2005 to the 4th in 2011.
The index has grown by 77% since December 2005, despite financial problems in the world. During the first six months of the current year, the index gained additional 6%. The dynamics of prices in the world was heterogeneous during the recent five years. In its press release, Savills paid attention to a serious gap between developed and developing markets.
The cities of the countries with developed economies that did not suffer economic shocks, such as Tokyo, London, Paris, Sydney and New York, showed the growth of 32% from 2005. The index of New York, which is considered a basic one for some other subscripts, made up only 7%.
In the cities with booming economies, such as Shanghai, Singapore, Hong Kong, Moscow and Mumbai, the growth of the index during the above-mentioned period made up 123%. The price growth was most intensive in the cheapest city among the largest cities of the world - Mumbai. The prices in the city increased 2.5 times in 5.5 years - 154%. Shanghai comes second with its 143%.
The ratings of the rental market of the cities is different, although Mumbai is still the cheapest. Rental rates are the highest in London. The list continues with Paris, Hong Kong, Tokyo and Singapore. One should bear in mind the fact that the level of prices in this segment depends on local salaries and public utility tariffs.
Rental prices grow slower than real estate prices. Rental income in the cities with new economies make up only 3.6% per annum. The index is higher in the cities with old economies - 5.1%.
The demand on rental residential real property in five cities with highest rental rates - London, Paris, Hong Kong, Tokyo and Singapore - is maintained owing to both corporate and local demand. Potential buyers of real estate are forced to choose rent because of credit restrictions.
"Increasingly, our cities have more in common with each other than with the domestic, mainstream markets in which they operate. Their future performance will depend upon their continued appeal as places to live and work as well as to invest. We anticipate that the efforts being made to cool the markets in some parts of the new world will take effect in the second half of 2011, so, although we expect their values to continue rising this year, it will be at a slightly more subdued rate," Yolande Barnes, head of Savills Residential Research said.
Ukrainians are fleeing the cities that could be taken by the Russian army. Apartment prices have already dropped by as much as 50 percent in Kharkiv. Housing sales have increased in Odessa as well, even if compared to 2022