World's hottest luxury housing markets

Price rise: 10.2%
Country: Israel

Prices in Tel Aviv have more than doubled in the last five years, thanks to strong Israeli and international demand.

Its performance is outpacing the rest of the country as limited supply of housing in the densely populated city inflates prices.

And it's the third city on the list to have benefited from a thriving tech industry.

Tel Aviv and its suburbs are home to a vibrant startup scene, and multinationals such as Google (GOOG) and Microsoft (MSFT) have large research and development offices in the area.

First published May 20, 2015: 9:21 AM ET

The Knight Frank Prime Global Cities Index compares the performance of prime residential prices across key global cities. Prime property corresponds to the top 5% of the wider housing market in each city. Price rises relate to the percentage change from March 2014 - March 2015.

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