According to a comprehensive study conducted by real-estate brokerage firms Douglas Elliman and Knight Frank, the value of $1 million varies significantly depending on the location, particularly in the world's most expensive cities.
In Monaco, known for its exorbitant real estate prices, $1 million fetches a mere 162 square feet of prime property. Following closely behind is Hong Kong, where the same amount buys 226 square feet. London ranks third in terms of high prices, offering 323 square feet for $1 million, while New York provides slightly more space at 344 square feet.
It's important to note that these figures pertain to prime property, representing only about 5% of the market value in each city. This means that there are more affordable options available beyond the prime segment.
On the flip side, some cities offer significantly more space for $1 million. For instance, in Sao Paulo, Brazil, $1 million translates to a generous 2,174 square feet, making it the most affordable city for premium buyers. Cape Town, South Africa, follows closely behind, offering 1,800 square feet for the same amount.
New York emerges as the preferred city among the wealthy, according to the Knight-Frank City Wealth Index, which considers factors such as the number of affluent residents and the investment climate. London, Paris, and Hong Kong also rank high on the list of desirable cities for the wealthy, with several American cities making it to the top 20, including Los Angeles and Chicago.
Additionally, the report analyzed cities worldwide to identify the best price-performance ratio for prime real estate. Frankfurt topped the list with a growth rate of 10.3%, followed by Lisbon (9.6%) and Athens (7%). Conversely, Rome and Lake Como showed the poorest performance, both with a growth rate of 2%.
In summary, while $1 million may seem substantial, its purchasing power varies significantly depending on the location and the type of property one seeks to acquire.
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