Cities boom for different reasons, and yet, property always seems to play a role. The trick is working out where to invest your money around the globe well before residential prices peak.

So with this in mind, here are seven potential property hotspots worldwide, based on cities listed by Knight Frank's Wealth Report for 2017.

Amsterdam

Amsterdam property is currently running hot, according to a recent story in The New York Times. The numbers reflect this sentiment, with prices up 20% in the first quarter of this year to about US$340,000 (median sale, equivalent to AU$44,000), compared to the same time last year, as reported by the Dutch news site, NL Times.

Among its many cultural attributes, Amsterdam is working its way up the rankings of European tech locations, says Knight Frank. The city has strong investment potential because of this bubbling business community, which includes vibrant start-up scene and numerous co-working spaces. It's also consistently listed as one the best places to live.

Melbourne

Melbourne is growing so quickly that its population is expected to surpass Sydney's within the next 20 years. Much of its rise also has to do with 'liveability’, with the city highly ranked on well-known lists like those done by Mercer and Forbes. 

This general positivity has led to a wave of development activity in the CBD over recent years, with several large mixed-use offerings still in the pipeline, says Knight Frank. 

However, it’s housing that most people want. The city’s median property price jumped 7.6% in the first three months of 2017 to a record high $826,000, up more than $55,000 on December figures, as per the Real Estate Institute of Victoria.

Image: Melbourne, Australia.

Mexico City

Mexico City continues to attract significant foreign investment as the gateway to emerging markets in Latin America, says Knight Frank. 

Redevelopment is being spurred on by the middle class, including new retail and dining offerings to meet their demand. Large mixed-use projects are also transforming neighbourhoods, including Paseo de la Reforma, Polanco and Insurgentes. With a new international airport under construction as well, Mexico City is clearly investing in its future. 

The city has the full range of property prices, with a small apartment typically going for around U$100,000 (Realtor.com), while large four and five bedroom homes are selling for as much as US$5m, based on sales on Century 21.

Image: Mexico City.

Austin 

Austin is fast becoming a model for forward-thinking cities and has gained the title, Silicon Valley of the American south, says Knight Frank. The city has certainly changed on the back of its modern day entrepreneurial focus and culture, which have transformed it from a government-dominated economy into a technology leader and tourist destination.

As such, businesses seem to be clamouring for a slice of the pie, with tech titans such as Apple, Google, Facebook, Oracle, Cisco Systems, Dell and Hewlett-Packard all setting up shop in town.

Austin’s home values have risen in stride with this growth, up 7.3% to US$320,000 over the past year, says property site Zillow. Zillow predicts they will rise another 3% within the next year. 

Image: Austin, Texas.

Miami

Knight Frank says Florida’s most famous city is reinventing itself as a creative and technology hub. There’s a lively art scene that has emerged around Art Basel, for example, which has led to new districts, restaurants, galleries and a new generation of residents. 

The retail sector is especially thriving with the recently opened Brickell City Centre super mall, part of a wider US$1bn mixed-use development that has added more boutique retailers to the expanding Miami Design District and Wynwood Arts District.

However, after a heated selling period, residential property has cooled a little in Miami, says Zillow. It reports that the median home value in Miami is $300,500, reflecting a rise of just 2.2% over the past year. 

Image: Miami, Florida.

Bangalore

After jumping in early 2016, Bangalore prices have fallen a little lately. According to property site PropTiger, residential prices rose by 3% quarter-on-quarter to US$75 (AU$98) per square metre. As a comparison point, Hyderabad saw the highest increase by square metre in India, up 5% to US$62  (AU$81) per sqm.

Culturally, things are happening. The city is touted as the IT and start-up capital of the country, says Knight Frank, and is seen as an attractive destination for multinationals looking to tap into a fresh pool of technology talent. For example, Uber, Airbus and Visa have all moved in and now sit alongside a healthy start-up scene.

Importantly, the city has a number of top-class global research institutes such as the Indian Institute of Science, as well as many state-owned research organisations as well. In short, it's emerging as a leading option for both domestic and international investment, says Knight Frank.

Image: Bangalore.

Berlin

The two central districts of Berlin, Mitte and Kreuzberg have led the regeneration wave, with Friedrichshain the most recent to take on the creative mantle, according to Knight Frank.

So, Berlin is a hive of activity right now, with both residents and businesses flocking into its coolest and most creative districts. Even so, the cost of living in Berlin remains one of the lowest in Germany and compares favourably with the rest of Europe, says Knight Frank.  

Deutsche Bank says that in 2016, prices for existing housing stock in Berlin rose by 13 per cent year-on-year, a particularly sharp increase and a stronger rise than in all other German cities. So steep has been the climb, that property prices are now twice as high as they were in 2005.

A shortage of dwellings and a lack of land for development are often cited as the main factors driving price increases, says Deutsche. 

Image: Berlin, Germany.

By JP Pelosi.

Read more about property 'hot spots':

Top 5 suburbs in Australia for price growth

Australia's housing hotspots: HIA report

Australia still a property hot spot for Chinese buyers