London's residential property is the most expensive in the world

"Over the next five years, we believe the trend of growing wealth and greater wealth concentration will continue" - Liam Bailey

In a survey of prime property across the globe London topped the list leaving jet-setter's favourites like Tokyo, Cannes and St Tropez in the shade with luxury pads in the English capital costing an average £2,300 per square foot.

In the poll of similar properties at the top end of the market in over 70 cities world-wide Monaco was ranked second - fat cats pay an average £2,190 per square foot in the wealthy principality.

New York was placed third, with prime property fetching an average price of £1,600 pounds per square foot, and Hong Kong was fourth, commanding £1,230.

The research unveiled in estate agent Knight Frank and Citi Private Bank's "Wealth Report 2007" points to the growing influence of high net worth individuals - defined as those with more than £5 million in inevitable assets - on the property market across the globe.

Elsewhere in Great Britain and Ireland, Dublin, Birmingham, Edinburgh and Manchester were identified as prime property locations.

They ranked 17, 19, 21 and 22 respectively, with values ranging from £320 to £470 per square foot.

Rapid economic development, together with the creation of new wealthy sections of society, had led to intense competition for the best apartments and villas in secure prime neighbourhoods - and boosted prices, according to the report.

Looking ahead, Liam Bailey, head of residential research at Knight Frank, said prime property would continue to outperform mainstream markets.

"Over the next five years, we believe the trend of growing wealth and greater wealth concentration will continue," he said.

He said up-and-coming key prime property locations included St Petersburg and Moscow in Russia, Delhi and Mumbai in India, as well as Guangzhou and Beijing in China.

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