Phuket property buyers are paying an 89 percent premium for their beachfront properties compared to similar land-locked homes – and that’s among the highest anywhere in the world.
Knight Frank surveyed real estate agents in 10 popular second-home destinations around the world and discovered that prime waterfront properties in coastal locations around the world are worth an average of 63 percent more than their inland counterparts.
However, there are regional differences from city to city, they noted.
Waterfront properties on Italy’s Lake Como and in Barbados have the highest price premium. In both locations coastal homes can command prices of more than 100 percent higher than equivalent homes inland. They were followed by homes in Phuket and the central Algarve along Portugal’s southern coast where values increase by 89 percent and 75 percentrespectively.
At the other end of the scale prime waterfront properties in coastal locations in Dubai are only worth an average of 10 percent more than inland homes. In The Hamptons, home to some of the most expensive residential properties in the United States, the presence of water only increases the value of a property by an average of 30 percent.
Coastal Average Premiums
Lake Como – 100%
Barbados – 100%
Phuket – 89%
Central Algarve – 75%
Miami – 60%
Cannes – 40-60%
Cape Town – 56%
Mallorca – 50%
The Hamptons – 30%
Dubai – 10%
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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