Bali and Jakarta in Indonesia top the list of cities where prices of luxury residences rose the most in 2012, according to the latest Wealth Report of real estate research firm, Knight Frank.
Of the 80 cities analyzed, Jakarta ranked first accounting for a 38 percent increase while Bali tied in with Dubai for the second place with prices rising by 20 percent.
In the report, Knight Frank also explains reasons for the maximum hike of prices in Indonesia. Apparently, Jakarta benefited the most from the strong Gross Domestic Product (GDP) growth in the city. Rapid growth in the wealth of the middle class people and increased access of property buying to non-resident investors had and will help the city sustain its position.
However, the global luxury real estate market yielded mixed results. While the Asia-Pacific region fared particularly well, the European region struggled.
Western Algarve, Rome and the British Virgin Islands recorded huge price falls at 12.5, 14 and 15 percent, respectively.
Check out the list of the top and least 20 performing cities here.
The Wealth Report is an annual flagship research publication of Knight Frank that offers an international and unique perspective on world wealth and prime properties. The latest reports surveyed High Net Worth Individuals (HNWI) of 71 prime locations. The report points toward the increase in political and economical influence on the global real estate market.
Check out an interesting video on an online discussion of the 2013 Wealth Report with global investors below:
