Everyone needs a place to live.
Billionaires seem to need more than one place, and are buying homes on top streets around the world for record prices, according to data from residential and commercial consultant Knight Frank published by Billionaire, a sister company of intelligence firm Wealth-X.
Property values on the most exclusive street have continued to rise in many instances against the backdrop of a recession that knocked as much as 40% off the price tags of global prime property, the data show.
“The appeal of super-prime property has rarely been higher,” Liam Bailey, head of residential research at Knight Frank, said in a statement.
“Rising demand for the best properties in the best locations has been set against tight demand, with limited new supply.”
According to a recent report released by Wealth-X and UBS, the total real estate holdings of the world’s billionaires is estimated at $169 billion, which equates to an average of $78 million per billionaire.
(Check out the 10 Most Expensive Hotel Rooms in New York at ThinkAdvisor.)
Billionaires own an average of four homes, each with a worth of nearly $20 million, the report showed.
“The highest echelons of society grew their assets by over 5% last year according to our research, and at this level of wealth there are few forced sales of real estate,” Tara Loader Wilkinson, editor-in-chief of Wealth-X and editor-at-large at Billionaire, said in the statement.
“The cachet of buying a trophy property on a famous street is clear. But annual price rises in many of these exclusive neighborhoods demonstrates that owners can increasingly afford to wait for an offer they can’t refuse.”
The 10 most expensive streets in the world were ranked on the basis of average price per square meter (10.8 square feet). Rises in price include currency fluctuations.
10. Avenue Montaigne, Paris
Average price per square meter: $26,000
Price change year on year: -3%
With a reputation as la grande dame of French high-fashion streets, the 350-year-old Avenue Montaigne has also become an exclusive residential neighborhood for France’s wealthy and famous. Located in the 8th arrondissement in the Champs Élysées quarter, the avenue is steeped in cultural history, and is home to jewelers and upscale designers. It has also been the target of at least two sophisticated heists. In 2008, jeweler Harry Winston (located at number 29) was robbed of more than $108 million worth of diamond rings, necklaces and luxury watches, the avenue such robbery within two years for the store. The street is also home to upscale hotel Plaza Athénée.
9. Fifth Avenue, New York
Average price per square meter: $28,000
Price change year on year: +5.4%
New York’s rich and famous have flocked to Fifth Avenue since the 1900s for its exclusive cachet and central location. The most expensive properties are those sold along the stretch between 59th and 96th streets, across from Central Park. In line with the recovering U.S. economy, prices here have soared more than 5% within the last year. The avenue is also one of the world’s most expensive for shopping and commercial rents, featuring every top designer boutique, from Armani through to Ermenegildo Zegna. The street is home to America’s most iconic landmark buildings and shopping centers, including the Empire State Building, Rockefeller Center and Saks Fifth Avenue.
8. Ostozhenka, Moscow
Average price per square meter: $29,000
Price change year on year: +3.6%
Ostozhenka is one of the oldest streets in Russia, and its most expensive. Art Nouveau buildings and famous landmarks, including the Kremlin, the Pushkin Museum and the Cathedral of Christ the Savior, line the street. Some of Moscow’s most sought-after restaurants, including French/Japanese eatery Vanil at number 1 and Snobs at number 3, are located on Ostozhenka. Over the last decade, several prestigious housing units were built on the street, mostly small in size containing a limited number of apartments. The most expensive apartment ever sold on the avenue was a five-level property located in Crystal House for $48 million. A recent lack of new development has supported buyers’ interest at a high level.
7. Romazzino Hill, Sardinia
Average price per square metre: $32,900