The housing boom, which spread across many of the world's finest luxury destinations, is finally tailing off. Still, prices in London, Monaco, Manhattan, and in famous European beach resorts and ski resorts continued to climb last year, as the pool of wealthy buyers from places like China, India, and Russia grew. Price growth is slowing even in Russia with its growing population of oil millionaires.
A 35% increase last year in home prices in prime locations of Moscow might sound impressive. But prices had jumped about 75% in 2006.
In the following slides, the price per square foot is an average for prime residential properties in selected luxury locations around the world. The annual price change compares the fourth quarter of 2007 with the fourth quarter of 2006.
Verbier (Switzerland)
Price: $2,325 per sq. ft.
What you get for $1.5 million: 1 bedroom
Annual price change: 6% Prices for vacation homes in this resort in the Alps have been pushed up by skiing enthusiasts, particularly from Britain. A one-year moratorium, which banned foreign property purchases, was lifted last year.
Price: $6,191 per sq. ft.
London
What you get for $1.5 million: Small studio apartment
Annual price change: A housing boom began in Central London in September, 2005, and continued through 2007, as wealthy buyers flowed in from around the world. The annualized growth for prime real estate is slowing this year and is expected to weaken further. But the super-luxury segment remains incredibly strong.
Sales for £10 million-plus homes in Belgravia, Chelsea, Knightsbridge, and Mayfair increased by 190% in the six months ending January, 2008, compared with the same period a year earlier. The annual price change compares the fourth quarter of 2007 with the fourth quarter of 2006.
Monaco
Price: $5,888 per sq. ft.
What you get for $1.5 million: Studio apartment
Annual price change: 25% It's not just the casinos, beautiful people, and staggering views of the Mediterranean that have made Monaco a popular home for the world’s wealthiest buyers. The real appeal is that its residents don't pay income tax.
Price: $2,692 per sq. ft.
Portofino (Italy)
What you get for $1.5 million: 1 bedroom
Annual price change: 14% Although there's no beach, the harbor of this resort village on the Italian Riviera is packed with yachts owned by the world's rich and famous. The village is about 20 miles from the Genoa airport.
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