The European city where house prices are rising faster than New York and Dubai

Many homeowners do what they can to increase the value of their homes and London is one of the world's most desirable places to live in, with rich house hunters from all corners of the world searching to snap up properties in the capital. However, there is one specific capital city in Europe that seems to be doing something even better as the values are growing much more rapid than aanywhere else in the world.

London property brokerage, Jefferies James analysed property price data across 15 global "property hotspots" and while places including Mumabai, New York, and Singapore are seeing values increase over the years, as well as Dubai, where property values are climbing up by a huge 16.5% every year, this one European capital is currently leading the way.

Spain's capital, Madrid, has seen immense growth across its property market with values climbing up by 20.3% within the last year. The city's population currently sits at just over 6.8 million people, with the average house price costing 642,419 Euros (around £550,000) according to spain-real.estate.com.

Damien Jefferies, founder of Jefferies James said: "The global landscape currently presents a rather mixed bag with respect to property price performance, as while a handful of cities have seen a respectable rise in values over the last year, there’s a good proportion where the market has remained fairly muted, with some even seeing a reduction.

In contrast to Madrid, the analysis found that London is among the places that have experienced "the most muted market performances" over the course of the last year. Property values in the country have seen an annual rate of growth of just 0.4%.

Vancouver, Berlin and Sydney are also among the cities that have seen low growth, while property values across Paris, Auckland and Hong Kong have fallen.

Damien added: "However, whilst this may seem negative on the face of it, we’re seeing a heightened degree of activity from luxury buyers, who recognise that now is the time to act in order to take advantage of less buoyant market conditions.

"This has particularly been the case across London, where property values have remained largely static year on year. Despite this, the city remains by far one of, if not the most desirable destinations for international buyers, many of whom are recognising that now is the smart time to invest, before improving market conditions cause prices to rise."