The ‘Capital of Latin America’ ranks second in Knight Frank’s latest Prime Global Residential Forecast
While the results of Knight Frank’s latest Prime Global Residential Forecast is not entirely surprising, it offers a much-needed sense of optimism for the US home market.
Miami edged out perennial favourite London and Hong Kong in the rankings, and is expected to grow between 5% and 10% year-on-year in 2013. America’s premier resort city ranks second behind Moscow but ahead of Dubai.
According to the UK-based estate agent, the top three cities represent very different markets and managed to edge out other usual entrants for a variety of reasons, which include government-imposed cooling measures and the still unresolved Eurozone debt crisis.
Observers suspect that the lack of supply and overseas buyers will drive Miami’s and Dubai’s performance in 2013.
Indeed, driving Miami’s growth are wealthy Brazilians, Argentinians and Venezuelans who have been snapping up luxury apartments in Miami and regard the US city a safe haven where to park their assets.
Knight Frank’s Kate Everett-Allen said: ‘In 2013 we expect a continuation of the same trends.’ However, she also added that currency movements will have an increasing bearing on the flow of wealth from city to city.
She added that the search for unique trophy homes will gather pace in 2013 due in part to the increasingly high standard of new projects.
‘Tall towers in the main gateway cities are already capturing the attention of…[high-net-worth individuals] and we expect this trend to intensify. The world’s wealthy will continue to micro manage their property portfolios weighing up lifestyle gains against tax benefits and currency movements but central to most decisions will be price performance, both historic and forecast.’
Knight Frank expects prices to fall in only three cities – Paris, Geneva and Shanghai – but in each case by less than 5%. Paris in particular has been sluggish in the second half of 2012, but a greater clarity is expected to emerge in 2013 once President Hollande’s austerity measures have bedded in. Indeed, new development is still limited in the French capital, which may help sales absorptions.
By Rodel Ambas Jr.
26 December 2012
Sources: Knight Frank, NuWire Investor