The 6 major cities where property prices are going to rise the most
Jan 4, 2016, 20:44 IST
A dancer poses for a photograph as part of the "Dance as Art" photo project in Times Square in New York September 22, 2014.
London has become synonymous with rising house prices due to the crippling housing shortage in the dense capital city. What's even worse is that property price growth is set to keep rising over the next five years by various estimates.
But according to the latest report by residential and commercial property consultancy Knight Frank, entitled "Prime Cities Forecast," there are a number of major cities, many of which are financial capitals, that are going to see greater property growth.
So, Business Insider decided to take a quick look at which major cities around the world will see the biggest increase in residential property prices over 2016.Advertisement
6. (Joint) London, UK — Home prices in Britain's capital city are only forecasted to rise by 2% because despite the huge housing shortage, "a rise in transaction costs, political risk around the Mayoral election, and on-going affordability" muted Knight Frank's forecast.
6. (Joint) Miami, US— Knight Frank actually cut its growth forecast for the coastal city to 2% for this year, from 4% in 2015, because the weakened US dollar against key South American currencies and the euro will hit demand.
4. (Joint) Monaco — Residential property prices are set to grow by 5% this year, mainly because the world's wealthiest people have to compete for space in this tiny principality.
4. (Joint) New York, US — The financial capital of the US is set to grow by the same amount as of 2015 but Knight Frank noted that "demand for New York’s luxury homes cooled from the frenetic pace observed in 2013 and 2014."
2. Shanghai, China — Knight Frank predict house prices rising by 4% but it stuck a major warning over the risks consumer face over slower than expected country growth dampening a rise.
1. Sydney, Australia — The city's residential property prices are set to grow by 10% in 2016. However, Knight Frank noted that Sydney is experiencing a price growth slowdown from 2015's 15% because "Australia’s economic slowdown, weaker stock market performance in recent months, and the introduction of foreign investment fees" are starting to hurt.