Capital gain: Nairobi sure beats Sydney

by BN14 May 2012

Property investors looking for capital city price growth may have been better to look overseas in the first quarter of 2012 - and Kenya's Nairobi would have been a good bet.

According to Knight Frank's global property index, Nairobi has come out on top of all global markets over the past year, with a healthy 24% capital growth during the first quarter this year.

Over the last three months Dubai has also come back to the fore after a challenging financial crisis period, with a 4% rise in prices over the last quarter.

Knight Frank said that the index's overall sluggish performance - a drop of 0.4% in prime property markets - was shrugged off by the likes of Nairobi, Jakarta, Miami and London.

Knight Frank said markets such as Singapore and London showed particular resillience, seeing strong growth despite the introduction of new stamp duties in the first quarter.

Overall, the index remained subdued in 2012 fluctuating between marginal price falls and rises. Knight Frank said it seems unlikely the globe is on the cusp of a new deflationary cycle in luxury houses.