While cities like New York, London and Paris still make the list of some of the world’s hottest luxury real estate markets, sales have cooled somewhat. This makes room for other international cities to emerge on the list of markets boasting spiked values in luxury homes.
1. Toronto, Canada
The Canadian city has been named the world’s hottest luxury market, with an impressive growth in sales of 37% in 2014. In fact, 2014 was the second best year on record for Toronto’s real estate market. It’s only the limited inventory in the city that prevented 2014 from being its best year to date.
It’s this very low supply of homes in Toronto that has pushed prices to between $1 and $2 million for relatively average homes, and as much as between $2 and $4 million for larger homes in more desirable neighborhoods.
2. San Francisco, CA
Now is as good a time as ever to own a luxury home in San Francisco. With a price increase of 14.3% over the past year, this west coast US city boasts among the most high-end real estate markets in the world.
The median asking price for homes in San Fran have been pushed over the $1 million mark thanks largely in part to the tech industry money that’s been pouring into the local market.
3. Bangalore, India
Referred to as the ‘Silicon Valley’ of India, Bangalore makes this year’s list of one of the hottest luxury real estate markets across the globe. Homes rose in price by nearly 14% over the past 12 months, thanks to plenty of new money flowing into the city.
Namely, Bangalore is becoming more of an attraction to the rich techies of the country, who are pouring into the city by the hoards and ultimately driving up real estate prices. In fact, it’s estimated that the number of extremely wealthy individuals in Bangalore will more than double over the next few years.
4. Jakarta, Indonesia
The influx of the ultra wealthy continues into Jakarta, pushing the prices of homes over 11% throughout the past year. Wealth continues to spread, and is estimated to jump by nearly 150% over the next few years.
Jakarta, along with the rest of the southeast Asian nation, offers a lot of economic potential, fueling the influx among the country’s wealthiest individuals. The Indonesian city has boasted one of the world’s fastest growing luxury real estate markets over the past few years, thanks to the filthy rich snatching up luxury homes by the dozen.
5. Tel Aviv, Israel
It seems as though the tech industry has its hand in boosting the real estate market in cities across the globe. Also benefiting from a strong tech industry is Tel Aviv, with housing prices that have more than doubled over the past five years. Multi-national tech giants like Microsoft and Google have even planted some of their offices in this Israeli city.
Over the last 12 months alone, prices for homes in Tel Aviv have increased over 10%.
The trend we seem to be experiencing is the hike in sales of homes over the $1 million mark is attributed to the increasing number of high net worth people – those with over $1 million in finances. In addition, cities with a strong tech foothold are seeing increasing home prices. For these individuals, real estate investments offer a hedge for their wealth, and these 5 cities seem to fit the bill.