The study examines London; New York; Sydney; Paris; Singapore; Hong Kong, Geneva and Dubai. London is expected to be flat. Besides New York and Sydney, the rest will see price falls next year, with Dubai possibly falling as much as 6 to 10 per cent and the others falling by as much as 5 per cent.

“New York is back on top with luxury prices across Manhattan expected to accelerate by 5 per cent to 10 per cent over the course of 2015. Strengthening foreign interest as well as improving economic indicators are behind  our positive outlook,” the firm said.

The report said limited supply of luxury property in Sydney is pushing prices higher, and these are expected to rise by up to 5 per cent in 2015.

Regarding Dubai, Knight Frank said the scale of any falls will be limited by dwindling supply and buying appetite from Indian purchases.

Risks to luxury markets next year are removal of government stimuli measures; unstable currencies; rising taxation on high-end properties; political intervention in property markets and economic reversals. On the upside, opportunities could come from emerging market growth, cheaper prices bringing buyers in and improving infrastructure.