The value of luxury homes worldwide has slowed in 2016 according to the unique Prime International Residential Index (PIRI), that tracks the value of top end homes in 100 key locations worldwide.
According to the Wealth Report from Knight Frank, on average, values rose by 1.4% in 2016, compared with 1.8% in 2015.
The index also showed a significant gap between the top and bottom rankings. The higher tier is dominated by cities in New Zealand, Canada, China and Australia, while oil-dependent locations like Moscow and Lagos fall to the bottom tiers.
Including all locations tracked, 61% logged flat or rising prices in 2016, this was down from 66% the previous year. This decrease suggests a marginal slowdown in the performance luxury homes worldwide.
But it not bad news for all. There are many locations that are performing very well. Cities in China have rocketed through the rankings with Shanghai, Beijing and Guangzhou claiming the top three slots, all exceeding 26% year-on-year growth.
Closer to home, London, where many of the world’s super-rich have a home slipped down the rankings with prices declining by 6.3% year-on-year. The 3% hike in stamp duty and UK’s decision to leave the EU have definitely had an effect on this.
With Article 51 set to trigger at the end of March, who knows what position we will be in this time next year!