Interest in purchasing luxury properties has increased by an average of two per cent in the last 12 months, according to analysis by international online database LuxuryEstate.com.

Surprisingly, the countries that have seen the largest increases in demand are Greece (eight per cent), Russia (six per cent) and Italy (five per cent), all of which are going through a period of extreme economic instability.

The largest demand for luxury properties overall comes from individuals from the U.K., the U.S and France.

As for cities, London continues to consolidate its position as the property capital world. The average price of luxury real estate has increased by 35 per cent since 2009. This is a result of growing international demand, amidst a scarcity of prime housing properties.

In London, approximately 60 per cent of luxury property transactions involve foreign buyers. The highest percentage of sales are from buyers in Russia and the Middle East, according to luxury real estate experts. There is also significant activity from European buyers, primarily in France and Italy.

The minimum price for a luxury property in London is £27,000 per square metre, compared to £13,000 per square metre in Paris, and £14,000 per square metre in New York. The price of luxury property in London is highest in Knightbridge, Chelsea and South Kensington. In these neighbourhoods, the average price is £42,750 per square metre.