P R E S S R E L E A S E

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1 P R E S S R E L E A S E CONTACT: Ekaterina Prokopova Head of PR in Russia ekaterina.prokopova@cbre.com HONG KONG MAINTAINS ITS POSITION AS THE WORLD S HIGHEST VALUE RESIDENTIAL LOCATION - Moscow has the highest proportion of owner occupiers London - Moscow, 9 September 2015 CBRE released its Global Living Report: A city by city guide, the final research report in a series of comprehensive area guides for the UK and international residential markets, designed to explore 31 of the world s most famous residential locations. The Global Living Report by CBRE highlights how the city of Hong Kong continues to hold its position as the world s most expensive residential location enjoying an average of 908 per sq ft. However, this high figure is relative to the smaller size of apartments within a market which continues to be underpinned by a severely constrained supply backdrop. CBRE also reports how Singapore has the second highest capital value at 570,000, although this is relative to a larger average property size of 1,100 sq ft, when compared to an average figure much closer to 800 sq ft in Hong Kong, London and New York. As London cements its place as the world s send highest value location according to average price per square foot, the Global Living report also brings to light how many cities are starting to witness a bounce back following the global crisis of 2008, coupled with those which have proven less resilient. How Do The Top 10 Highest Value Locations Rank? Top 10 Highest Value Locations Average Property Price ( psf) 1. Hong Kong London New York Paris Singapore Tokyo Los Angeles Milan Rome Edinburgh 328 Source: CBRE

2 Jennet Siebrits, Head of Residential Research at CBRE, comments: As the global population continues to expand and new innovations impact the property market, we are witnessing a move towards greater integration between our cities. What our research has found however, is that global cities are retaining what makes them unique whilst sharing valuable knowledge and experience that can enhance other cities around the world. Using the advantage of CBRE s unique position as a global property company, we have witnessed some unexpected findings in the Global Living Report, such as in Dublin, where house price growth was at a global high of 22%, and in Moscow, which has the highest proportion of owner occupiers in our sample. In Europe, we report how the central London residential market has rebounded at a significant rate, with average house price increases of 86% since In the Outer London market we have witnessed a slower growth of 63% during the same period, demonstrating a divergence which is now narrowing, as overall prices in the UK s Capital reach 14.8% in 2014 alone, offering investors significant growth prospects. Investors would be advised to look to areas where east meets west, with Istanbul and the South African cities of Johannesburg and Cape Town demonstrating the lowest average property prices. Perhaps a surprising investment opportunity is Sydney, which has the fifth highest capital value at 367,648. Its unit sizes are relatively large however, so on a per square foot basis the city is relatively affordable. How Do The Top 10 Lowest Value Locations Rank? Top 10 Lowest Value Locations Average Property Price ( psf) 1. Istanbul Johannesburg Cape Town Lisbon Toronto Chicago Madrid Barcelona Sydney Bangkok 168 Source: CBRE

3 The Global Living Report provides a snapshot of 31 global cities, showcasing the differing influences in each city and providing a comparative study of house prices, rental growth and living costs, among other factors. Earlier reports include the Borough by Borough Report which identified house price growth across London s 33 boroughs and the British Living Report which explores local trends and buyer characteristics across 29 of Great Britain s most highly populated towns and cities. Europe Barcelona City living in Barcelona is reasonably affordable by Spanish standards and average house prices have experienced growth of 0.6% over the last year, bringing much needed stability to the market following the global financial crisis is expected to be the most significant year of recovery and therefore Barcelona is considered a prime investment opportunity. Berlin With its low rents and edgy nature, Berlin has always attracted artists but the affluence of residents is now expanding. 81.2% of the population rent privately however rents are now high, even by Berlin standards, having increased by 5.7% in the last year alone. Growth is also reported in the sales market and the city is considered an exciting and affordable opportunity for investors. Dublin Living costs in the vibrant capital of the Republic of Ireland are relatively expensive however they remain lower than London. Ireland is a nation of homeowners and national house prices are steadily recovering. Dublin experienced house price growth of 21.6% last year - the fastest rate of growth in the CBRE Global Living sample. Edinburgh The historic city of Edinburgh has a large student population which underpins the rental sector; 22% of the population rents. This demand led to a 19% increase in rents last year and the housing market is just as buoyant, with house prices rising by 20% in the same period. Frankfurt Frankfurt is the largest financial center in continental Europe and unemployment is low at 5.2%. Around 77.1% of the population rents privately and average rents in Frankfurt are significantly higher than the rest of Germany at 835 per month (159% higher than the national average). Lisbon The popular tourist destination of Lisbon is one of the oldest cities in the world, with a long history dating back 300,000 years. Cost of living in the city is low and its property market is making a slow recovery after the global financial crisis, with the first rises in house price growth in Portugal in five years (2.2%). Foreign investors are driving the residential market, making up 22% of all sales. London A multicultural city with 8.7 million residents, London s population has increased by around a million people in the past decade. The central London property market rebounded quickly after the global financial crisis with residential prices increasing by 86% since The outer London market has also picked up and overall prices in London increased by 14.8% in Madrid Madrid has a strong owner-occupier population with 78% of householders owner-occupied. The wider Spanish market remains muted after the global financial crisis however average property prices in Madrid rose by 0.7% last year and transactions were up 28% on the ten-year average. As the economic backdrop continues to improve, Madrid is seen as an exciting investment opportunity. Manchester Often considered England s second city, Manchester has a large rental sector with 28% of households renting privately. The rental sector is supported by a very high share of young people in the city, with four universities across Manchester and 34% of the population aged between 20 and 34. Average house prices increased by 3% last year but remain 42% lower than the national average.

4 Milan A major financial and business centre, Milan is also one of the world s most prominent fashion capitals. Average property prices in the city are currently 52% higher than the Italian average and Milan is popular with UK and US investors who see it as an ideal opportunity to acquire a second home. Moscow The Alpha world city of Moscow has a remarkably stable property market, despite the general stagnation of the overall Russian economy. Transactions are robust with 162,000 transactions over the past year compared to 115,000 as the decade s average. The rental market is also demonstrating a general upward trend. Paris Paris has one of the highest city living costs with a beer costing 4.31 and a public transport pass coming in a 50 per month. Dominated by renters, only 33% of the Paris population is owner-occupier; rental caps came into play in August and will impact rental returns on some investment properties. There has been a surge in overseas investors and Paris is now attracting more overseas buyers than it has in the past 15 years. Rome With its impressive historical ruins and cosmopolitan flair, Rome is an attractive tourist destination welcoming 30 million tourists each year. Property prices in Rome are 44% higher than the Italian average and a slight increase in transaction levels has been recorded as UK and US buyers have spotted an investment opportunity. Americas Chicago Following the global financial crisis, average property prices have rebounded in the wider Chicago metropolitan area and have grown 1.2% in the last year. With an average price of 120,128, Chicago sits above the national average and is expected to experience further 1.7% growth over the next year to Los Angeles With 80% of Los Angeles designated as single family residential property and strict rent control laws, there is a large supply and demand imbalance in this sprawling city, pushing up property prices. Los Angeles has one of the largest renter populations in the US (51.7%) and private rents are higher than New York having risen by 5.6% over the year to 1,600 per month. Miami Miami is experiencing a strong property market, with average prices 59% higher than the national average. A period of constrained supply has boosted property prices and a recent pick up in development has resulted in a more sustainable level of price growth. New York A lack of supply and high prices in Manhattan has led to the Manhattanisation of many areas outside the island, with luxury high rise buildings being built in Brooklyn and Queens. 48% of New Yorkers rent and while average prices are lower than London, they are 42% above the national average in the US. Average house prices are nearly four times higher than the national average at 432,243. Toronto With 2,231 high rise buildings across the city, Toronto has the second highest number of tall towers in any North American city outside New York. Property prices are lower in Toronto than Vancouver, averaging 277,123 to Vancouver s 339,416; Toronto is expected to experience house price growth of 9.6% this year. Vancouver Housing prices in the Vancouver region increased by 10.3% over the last year, reflecting strong demand from migration from elsewhere in Canada and the US. The rental sector in Vancouver houses 52% of the population and rents are currently higher than in Toronto at 675 per month to Toronto s 629.

5 Asia Pacific Bangkok The colourful city of Bangkok is very affordable in terms of costs of living and currently has a very low unemployment rate of 1.1%. The luxury market is performing well, with a 30% increase in prices for off-plan condominiums. Prices for older developments are stable as the majority of Thai buyers prefer new stock to existing building projects. Beijing Second only to Shanghai as China s most populated city with 22 million residents, the population of Beijing is expected to increase by 16% in the next decade. A series of stimuli from the government to boost the residential market have had the desired effect, with sales volumes increasing by 25% over the quarter. Hong Kong This vertical city has the highest average property price across the sample, at 508,000 ( 908 psf). Despite the introduction of a special Stamp Duty and tightening of mortgage lending policies, prices have continued to increase, rising 13.5% in 2014 and 7.2% in the first five months of this year. Shanghai Home to 24.3 million people (and due to increase by 13.3% over the next decade) Shanghai is one of the largest cities in the world. Government interventions following the booming market in 2013 led to a slowdown in house price growth. In March 2015, the People s Bank of China lowered the minimum down payment for first-time buyers and upgraders, stimulating demand and causing a pick-up in sales values. Singapore A strong economy and the attractiveness of Singapore as a place to live has created a strong housing market, which until last year was increasing by an average of 8% per year over the past decade. Government interventions have affected current prices and Singapore is now expected to have a lower growth market than before. Prices remain high, with average property prices at 570,000 - the top end of the CBRE sample. Sydney The concentration of banks in Sydney has led to the city becoming recognised as one of Asia Pacific s leading financial hubs. High demand and long-term undersupply have driven up housing prices however this undersupply is now being addressed, with 39,114 home approvals in Average house prices in Sydney increased by 12.9% last year and are 38% higher than the national average. Tokyo Tokyo is home to the largest metropolitan economy in the world and its urban area had a total GDP of 1.2trn in The housing market was affected by the global financial crisis but rebounded in Under half of Tokyo s population is owner-occupiers and whilst average prices are 264,401, the relatively modest size of the properties translates to a fairly high 447 psf. Africa Cape Town One of the most beautiful cities in South Africa, Cape Town welcomes 1.5 million foreign tourists each year. Despite a high unemployment rate of 23.9%, the city s economy is picking up with GDP growth of 2.9% over the past year. Wealth polarization is mirrored in the property market, rendering average figures somewhat unreliable. The rental market is strong and 28% of residents rent privately. Johannesburg The economic and financial hub of South Africa, Johannesburg produces 16% of the nation s GDP. A large transient workforce preferring to rent privately has resulted in 37% of the population living in private rental property. Average rental figures mask wide discrepancy in property type and wealth. The residential sales market is strong, experiencing 7% house price growth over the last year. Middle East, North Africa and Turkey Abu Dhabi Abu Dhabi s population of 2,570,000 is expected to increase by 54% over the next decade, adding an additional 1.38 million residents. The property market experienced 31% growth in 2013 and 24% growth in 2014, and has since taken on a more stable pace as a result of lower oil prices. The rental market is robust, with 12% growth over the last year taking values to 1,698 per month.

6 Dubai The promise of an opulent lifestyle and tax-free salaries has created a large expat community in Dubai, with 92% of the population made up of expats and migrant workers. A buoyant market saw 22,989 transactions last year, 28% higher than the 10 year average. A trend of large quantities of new developments is expected to continue, with 25,000 new units built on average each year. Istanbul The fifth largest city in the world, Istanbul is seen as a strong investment opportunity. Last year the city enjoyed 15% annual house price growth and the rental market experienced similar growth of 12% in rents. Istanbul has the lowest average property price in the sample at 72 psf. About CBRE ENDS CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at and