As before, Dubai remained the leader in terms of price increases for renting and buying luxury real estate, where this indicator reached 12.4% by the fourth quarter of 2014. Despite this, by December price growth had practically stopped, recording an indicator around 13% – analysts noted the smallest price increase in the UAE in the last five years. In second place was Tokyo – the total increase for 2014 was 9.8%, while in New York this indicator was even more modest – only about 8%.
A sharp slowdown in price growth for renting and buying global real estate becomes obvious when comparing the figures for 2013 and 2014 – it decreased by about half. Moreover, if in the fourth quarter of 2013 there was an increase in the price of luxury housing in 90% of all cities in the world, then in 2014 this indicator remained at 66%, affecting mainly megacities and resort areas.
In Moscow, by the fourth quarter of 2014, there was a sharp collapse in prices for renting and buying luxury real estate. Depending on the type and location of the property, this indicator ranged up to 40% in dollar terms and up to 20% in ruble terms. Moreover, amid inflation, even a slight rise in the price of luxury apartments and flats was perceived by many investors as an opportunity to profitably invest funds. After all, the ruble continues to rapidly lose value, so many ruble millionaires are rushing to strengthen their savings by investing in real estate. Demand for such housing even increased slightly, contrary to all expert forecasts who believed that the rapid depreciation of the ruble could negatively affect the real estate market.
In 2015, experts predict a continued decline in rental prices, which will last until the situation in the domestic foreign exchange market stabilizes. Moreover, due to the emerging interest of investors, it is becoming more difficult to acquire luxury housing, and the resulting shortage may lead to a temporary stabilization of prices in this market – at least until developers solve the problem with truly high-quality housing options.