Prague,
15
October
2015
|
10:13
Europe/Amsterdam

The most expensive housing is in Hong Kong, with Singapore having the highest rate of flat ownership

The average price of a flat per sq. m in Prague is fluctuating around CZK 67,000 and CZK 150,000 in the centre

Summary

CBRE, the global leader in commercial real estate services, has issued a study (Global Living Report), which compares residential markets in 31 cities around the world and the factors that affect them. Based on the study prepared by CBRE, the rankings of the most expensive localities are based on the price of buying and renting flats, but also according to the annual increase in prices of residential housing and real estate owners in relation to landlords. As for the prices per square metre for residential projects, Hong Kong has retained its position as the most expensive residential city in the world, with London consolidating its position in second place.

It is evident that a large number of cities have already recovered from the crisis which hit the markets in 2008, with both the prices and value of residential housing starting to rise. Thanks to globalization and migration, the world is more interconnected and cities share the latest approaches to architecture, design, and interior design. Nevertheless, the CBRE study shows that cities have demonstrated the ability to maintain their unique character.

Housing in Prague fluctuates at around 67,000 sq. m, but the prices vary greatly between the peripheral parts and the city centre. While the housing prices are around CZK 40,000 per sq. m in the Prague outskirsts, they reach up to CZK 150,000 per sq. m in the centre. As of 2012, the flat prices have increased by approximately 30%, thus we're slowly returning to the price levels of the pre-crisis period.
said Jitka Komárková, Head of Residential Agency CBRE.

Cities with the most expensive housing in the world

Ranking City Price of residential housing per sq. m in CZK
1 Hong Kong 361,236
2 London 261,379
3 New York 214,832
4 Paris 208,467
5 Singapore 206,478
6 Tokyo 177,833
7 Los Angeles 171,070
8 Milan 138,845
9 Rome 133,673
10 Edinburgh 130,491

Residential markets in the most expensive cities

Hong Kong

For a city bordered by the sea and China to the north, the possibilities for new buildings in limited. Therefore, they have to build upwards, which is why the city is called the “vertical city” due to the number of skyscrapers. At the same time, it is one of the largest financial centres in the world and we rank it among the cities with the highest population density, which is why the price growth of residential projects continues despite the deteriorating conditions for drawing mortgages.

London

This multicultural city, whose population has grown in the last decade by another million to today's 8.7 million, quickly regained confidence after the crisis. In addition to the improving economic situation and low interest rates, government incentives have also helped to encourage domestic demand for residential housing. Besides newly finished flats being added to the market and other rental flats being available, the rental market for flats in London is very developed. Owners of these flats do not need to worry, however. At the current population growth prediction levels, that remain unchanged, there will still be a high demand for flats.

New York

New York, a city where many of its current 8.5 million inhabitants have come to fulfil their dreams, a vibrant city packed with diverse cultures and corporate businesses. The lack of supply of residential projects in Manhattan and the resulting high prices have led to luxury high-rise buildings beginning to appear in other neighbourhoods like Brooklyn or Queens. 48% of New Yorkers rent their housing, because residential housing is four times higher than the national average.

About CBRE

CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.