The overseas luxury market: What €1 million buys and who is buying where

The overseas luxury market: What €1 million buys and who is buying where
The overseas luxury market: What €1 million buys and who is buying where

Madrid and Dublin have been heralded as 2013’s standout recovery markets in Knight Frank’s European Cities Review that looks at luxury markets and “Tier-2” cities across Europe.

Below, is how much space 1 millions will buy you.

The overseas luxury market: What €1 million buys and who is buying where

Source: Knight Frank Residential Research

Here are the nationalities purchasing in these cities:

The overseas luxury market: What €1 million buys and who is buying where

Source: Knight Frank Residential Research

Head of international research at Knight Frank, Kate Everett-Allen, said that even among the first tier cities in Europe, there is considerable disparity.

With luxury prices in Paris oscillating around €12,000 to €15,000 per square metre, property here is looking good value, especially when compared to London or Monaco where prime prices are closer to €30,000 or €55,000 per square metre respectively – even taking President Hollande’s tax ruminations into consideration,” Allen explained.

“As economic indicators improve, the safe haven effect may not be uppermost in luxury buyers’ minds. Instead, lifestyle, proximity to schools or universities and security considerations may be increasingly influential.”

The performance of prime property, in fact, is influenced by the pattern of capital flows and the priorities of the world’s wealthy, she said.

Below are some examples of the reasoning across Europe (click to open in new window).

The overseas luxury market: What €1 million buys and who is buying where

Source: Knight Frank Residential Research, Oxford Economics.

Nicholas Holt, Knight Frank head of research for Asia Pacific, said that the critical question is whether prevailing wealth flows will alter now the worst of the Eurozone crisis is over.

 “As economic indicators improve, the safe haven effect may not be uppermost in luxury buyers’ minds.  Instead, lifestyle, proximity to schools or universities and security considerations may be increasingly influential,” said Holt.

“Although wealth creation is forecast to be strongest in emerging markets in Asia and Latin America, the appeal of Europe’s luxury bricks and mortar will – due to its history, diverse cultures, architecture and climate – mean it will remain the location of choice for the world’s wealthy.”

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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International

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