In percentage growth terms, North American prime properties were left in the dust by markets in Europe and Asia, figures show.

North American cities are nowhere to be seen in the top rankings luxury real estate price gains, according to figures in the 12 months to end-June. New York actually suffered a price drop.

The Prime Global Cities Index from Knight Frank, the real estate consultancy, showed that price growth in prime properties is slowing because of economic headwinds, while European cities such as Berlin and Frankfurt are out in front of the pack, at least in percentage growth terms. 

The Prime Global Cities Index, tracking movements in 46 cities, rose by 1.4 per cent in the year to June 2019, up a touch from 1.3 per cent in March 2019 but still far below its four-year average of 3.8 per cent. Six European cities sit in the top 10 for gains, while not a single US city does so. The highest-placed North American city for price gains is Toronto, up by 3.8 per cent for the 12-month period.

Miami rose by 1.5 per cent – making it the strongest gainer of any US city in the rankings – and San Francisco eked out a 1.2 per cent gain; Los Angeles rose by just 0.7 per cent and New York fell by 3.7 per cent and Canada’s Vancouver slumped by 13.6 per cent.

Among other cities that are notable wealth management centers in the rankings was London, falling by 4.9 per cent (possibly affected by Brexit uncertainties and some tax changes); Hong Kong (unchanged for 12 months) and Singapore, which rose by just 0.9 per cent. 

“Sluggish economic growth explains the wave of interest rate cuts evident in the last three months as policymakers try to stimulate growth. Much hinges on the next three months with stronger headwinds on the horizon we expect the index to moderate further in the second half of 2019 before strengthening in 2020,” Knight Frank said. 

Berlin rose by 12.7 per cent, ahead of Frankfurt, up by 12 per cent and Moscow at 9.5 per cent. Manila rose by 6.2 per cent, with Geneva in fifth spot, at 6 per cent. The following cities all saw a rise: Madrid 5.2 per cent, Paris 5 per cent, Zurich 4.5 per cent, Beijing 4.5 per cent and Dehli rounded out at the top 10 at 4.4 per cent.