London is officially the most expensive city in the world for luxury new-build property, according to CBRE.
The cost of a new home in central London has risen 16% in the past year, reaching £2,000 per square foot.
London has beaten Hong Kong and New York, where new homes cost £1,950 and £1,800 per square foot respectively.
London house prices have increased by 231% in the last 30 years and CBRE expects central London property prices to go up by 30% in the next five years.
Jennet Siebritis, head of residential research at CBRE, said London property prices are on the up because of a supply and demand imbalance.
“People under-estimate the supply-demand imbalance,” Siebritis said.
“For an increase of one million people only 200,000 homes have been built. That’s a house for one in five people.
“The pressure on price is so acute.”