The global prestige property market was buoyant in 2013, according to a new report

The luxury property market thrived in 2013, says a new report on international real estate. London was the most popular destination for luxury property buyers seeking a second home but also the most expensive. The latter factor may encourage buyers to start looking to other cities, including Paris.

The report compared 10 markets in cities around the world against a range of indicators, including sales prices and square foot prices. The report defines luxury property overall as more than $1 million but the threshold varies in different cities: in Paris it is $2 million, while in London it is $7.8 million.

Foreign cash buyers who do not need mortgage financing have fueled the prestige property market, following a good year for financial investments in 2013. This has led to a market where demand has been greater than supply. Paris saw a 12% increase in the prestige property market during 2013.

Prices in London have soared in the past few years. The top price globally in 2013 was paid for a London property: $101.5 million. The research shows that Paris property prices were 50% cheaper, while New York was 30% cheaper than London. These factors may lead buyers to look away from London to other global cities that offer better value for money.