moscow

10 May 2007

Moscow to Over pace London in Home Prices

London's residential property is the most expensive across the globe, concluded the report of Knight Frank & Citi Private Bank that covered 70 cities. Moscow and St. Petersburg were scored the 11^th and the 13^th respectively and the analysts expect Moscow to dislodge London in ten years.

The Wealth Report 2007 elaborated by Britain's Knight Frank real estate agent and Citi Private Bank of the U.S. Citigroup compares prime property in 70 cities of the world London tops the list with the 1 sq meter of elite housing averaging €36,800. Monaco and New York hold the second and the third positions with €35,000 per a sq meter and €25,600 per a sq meter respectively. Moscow and St. Petersburg are ranked 11 and 13. There, a sq meter values average €12,300 and €10,400 respectively.

Fueled by strong demand, the prices for the best apartments and villas soared 32 percent in London. But this acceleration appears mere crawling vs. the 95-percent surge in St. Petersburg and the Moscow increase of 75 percent. Rapid economic growth coupled with emergence of new fat cats led to the tough competition for the best housing in the rather safe prime neighborhoods, the report says.

According to Knight Frank experts, in ten years, Moscow could turn into a worthy competitor for London in prime property prices. St. Petersburg and Moscow in Russia, Delhi and Mumbai in India and Guangzhou and Beijing in China are the most promising in terms of prime property, the report says.