London is the world's most expensive city for luxury new-build homes

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.”

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