Property and other real estate assets owned by the affluent coming from all over the globe are referred to as prime properties. Despite its growth for the past two years in the midst of global financial difficulty, these prime residential properties are now expected to feel the heat with the continuing global economic turmoil still fanning the embers. Prime properties in Asia, Europe, Middle East and Africa are no longer exempt from this and are now greatly affected.

Amidst the slackening mortgage crisis in the West, one can say that prime residential and real estate properties have continued to grow in Asia. However, this will not likely be the scenario by next year, 2012. Prices of these prime residential properties will decrease tremendously, predicting, 44% of the key cities studied to go through such a price fall and only about 12% of the observed cities will retain its value.

According to the latest results of the Knight Frank Prime Global Contrast, among all the areas, Asia is the most affected with the slowdown of the price performance of these said properties. In Hong Kong and Shanghai alone, the stunted growth can be seen among these prime properties with luxury homes gaining in value by just 7.8% and 3.8% respectively for the past year, which was really down below coming from the previous year’s figures at 19.7% and 29.7%.

The crisis in Europe is also a determining factor in the price fall, which affects about nearly two thirds of the cities included in the forecast. This being so, properties located in cities in the Middle east and Africa have also decreased prices because of political and security concerns.

According to International Residential Research at Knight Frank, Kate Everett-Allen, aside from other economic, political, social and security issues that have influenced the said decrease in value, the lack of properties for sale is also a concern especially in London, Paris, Moscow, Nairobi and Kuala Lumpur.

What is there to sell when the wealthy still holds on to these properties? This just proves that high inflation, interest rates and consumer debt only play a minor role in the decrease of value of luxury homes. Those who belong to the upper bracket of society are still holding on to these properties and are continuing to acquire more, with the rising desire on real estate properties over financial products.

Even when the going gets tough on a global scale and the impending economic backlash, there will always be a growing market within prime properties that would revolve on its own brought about by emerging market wealth and safe haven purchases by the select profitable few.