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In 2014, global luxury residential prices increased by 6.2 percent.

According to the new Knight Frank Prime Residential Prices Index, luxury residential property prices rose 6.2 percent on average in the year to June 2014 across the global index's 32 cities. The value of luxury homes in main US cities is now growing at a faster pace than in other European and Asian cities. In the year to June 2014, 27 of the 32 prime residential markets tracked by the index saw positive annual price increases, up from 21 a year earlier.

Jakarta and Dublin stand out for their outstanding performance, with 27.3 percent and 23.5 percent increases in the year to June, respectively. In both cases, however, the rate of growth slowed in the second quarter. find property qatar

The rate of growth in Dublin has slowed from 5.6 percent in the first quarter to 2.1 percent in the second. Given Ireland's improving economic outlook and the expiration of Ireland's capital gains tax incentive at the end of 2014, we expect prime prices to continue to rise in the second half of the year.

In the year to June, prime prices in Dubai increased by 6.3 percent, down from 11.7 percent the previous quarter. At the end of 2013, the mortgage cap and the doubling of transfer fees had a greater impact on buyer behavior than anticipated. According to new research from Knight Frank, mortgage financing accounts for 25 percent to 35 percent of all transactions in the Emirate, which is higher than previously believed.

However, with new supply at the prime level expected to be restricted in the next 18 months, we expect prices to rise in the second half of 2014.

Last quarter, Kate Everett-Allen, head of Knight Frank's International Residential Research, noted the improving performance of luxury homes in North America. "This pattern continued in the second quarter, with double-digit annual price increases in New York, Los Angeles, Miami, and San Francisco, putting them all in the top ten rankings," Ms. Everett-Allen said.
With the gradual removal of stimulus measures in the United States and the United Kingdom, the possibility of increasing interest rates, and the continued implementation of cooling measures across most of Asia, it would be reasonable to expect the index's output to deteriorate.

However, the index's annual rise of 6.2 percent in the year to June was higher than the long-run average of 4.6 percent since Lehman Brothers' crash in the third quarter of 2008, demonstrating how prime property has become a famous asset class around the world.

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