Indonesia was the hot spot for global real-estate growth in 2012, with Jakarta growing 28.5 percent by the end of the third quarter, according to the Prime Global Cities Index published by Knight Frank property consultancy. Other cities with double-digit growth included Nairobi, London, Miami and Dubai. European cities were the worst performers.
The index, which tracks 26 cities, showed flat or positive growth in 15 cities through September, increasing to 20 cities in just the third quarter alone. That indicates improvement overall in the global market as the year progressed.
The company attributes strengthening demand to economic uncertainty and strong performance in alternative asset classes, along with appeal of these particular cities to luxury property-buyers. The performance of regional economies appears to have little influence on the hottest cities.
Since 2009, the index has improved by 18.7 percent, with Hong Kong, London and Beijing being the strongest performers over the three-year period.
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