'Luxury Defined' Global Report

The Luxury Index: Top Ten Cities

Now in its third year, the Christie’s International Real Estate Index gives luxury rankings to the year’s 10 top performing cities across the globe

Ranking the world’s top luxury real estate markets can be best achieved by observing two types of market dynamics: those that measure the relative ‘luxuriousness’ of a market and those that take its overall ‘temperature.’ In previous years, the Christie’s International Real Estate Index—a comparison of the world’s top 10 performing luxury residential housing markets compiled for our annual Luxury Defined white paper—reviewed both factors and gave an overall score to each market. 

In order to better evaluate the relative annual performance of the top housing markets, this year’s Index aggregates residential data for each city and presents a corresponding score out of a possible 100 for both luxury and market-temperature categories.

The Luxury Index evaluates overall prices and relative ‘luxuriousness’ of a market. Measuring the Luxury Temperature of the top prime property markets, however, offers a different perspective of the global marketplace. This category evaluates both growth and demand, and answers the elusive question: “Which was the hottest luxury housing market?” in a particular year. This ranking takes into account annual sales growth, time on market, and other independent city rankings.

Although London topped our Luxury Index list of top housing markets globally, Toronto ranked as the world’s hottest luxury real estate market in 2014 as a result of strong velocity in the number of prime property sales (up 37 percent over the prior year) and a torrid pace of sales (luxury homes sold in 31 days on average in Toronto). 

KEY FINDINGS FROM THE 2014 INDEX

  • London topped the year’s Luxury Index rankings— which rewards top sales prices, high average prices per square foot, and number of luxury sales—with a score of 75.
  • New York’s exceptional record sale ($100 million) and sustained strength in other Luxury Index metrics solidified its position as the second top luxury market. New York and London’s high rankings are unsurprising to many, given both cities’ continued strength as global economic hubs.
  • Despite slowing prices and negative annual sales growth due to government cooling measures, Hong Kong ranked third in the Luxury Index. This is testament to its enduring popularity for investment that it is still one of the world’s most expensive—and prized—cities for luxury real estate.
  • Ranking third on our Luxury Temperature list, Sydney recorded strong year-on-year sales growth and large numbers of sales over $1 million, ending up in fourth place in our Luxury Index rankings.
  • New to the Index in 2014, Dubai recorded the highest percentage of international and non-local buyers (75 percent) and a solid number of luxury listings relative to its population, likely as a result of continued luxury inventory entering the market.
  • Despite being ranked tenth in the Luxury Index, Toronto’s market was red hot in 2014, giving rise to its number-one position in the Luxury Temperature category. Toronto’s market strength was fueled by overall increases in home prices and incredible velocity in sales.
  • San Francisco ranked second in the Luxury Temperature category as a result of strong annual sales growth, and ranked sixth in the Luxury Index.

Note: The 2013 Index included Côte d’Azur in its rankings, which was replaced this year by Dubai to limit the Index to similar market types (Global Economic Hubs).

Source: Luxury Defined, Christie's International Real Estate 2015 white paper on the global luxury property market
Source: Luxury Defined, Christie's International Real Estate 2015 white paper on the global luxury property market
Source: Luxury Defined, Christie's International Real Estate 2015 white paper on the global luxury property market
Source: Luxury Defined, Christie's International Real Estate 2015 white paper on the global luxury property market