World's hottest luxury housing markets

Price rise: 8%
Country: Ireland

Ireland was slammed during the eurozone crisis but has pulled itself back from the brink.

The country is expecting growth of 3.9% this year, according to the International Monetary Fund, more than double the predicted rate for the region.

A stronger economy is attracting investment, while education is another big driver.

"A lot of wealthy Asian and U.S. [buyers] are considering Dublin as a base for their child for university or school, and then they will purchase a property in the city," Everett-Allen said.

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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