The world’s luxury residential property markets fluctuated in 2011, with some, like Miami and London, recording major gains and others, like Singapore and Sydney, falling significantly.
But the city with the highest rate of growth in luxury real estate prices in 2010 wasn’t a Chinese boomtown or European safe haven, but Nairobi, the capital of Kenya, according to a new wealth report from Knight Frank and Citi Private Wealth.
The study found that prices for high-end real estate in Nairobi jumped 25 per cent in 2011. And the Kenyan Coast recorded the second highest growth, with a price jump of 20 per cent. Miami came in third, with a price increase of 19.1 per cent for luxury real estate, according to the study.
Ironically, some of the largest price drops were in places with the strongest economic growth, likely due to the ongoing impact of the financial crisis and the end of price booms in Asia.
So why the record growth in Nairobi? The report, which calls the increase “startling,” explains:
“Safe haven” isn’t necessarily a phrase many people would use to describe the country in a global context, but compared with many of its neighbours it is just that, according to Ben Woodhams, Managing Director of Knight Frank Kenya.
He says that Kenya’s rapid economic development is attracting domestic and international private equity, with particular growth in remittances flowing from Kenya’s increasingly affluent diaspora.
However, recent events such as the kidnapping of tourists staying on the north coast and a sharp rise in interest rates to almost 25% also highlight the potential vulnerability of some emerging prime markets.
These are the 20 places where luxury residential real estate prices increased the most in 2011:
Photo: Knight Frank
*Q3 2010 to Q3 2011
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