Luxury real estate in 2017: Top of the most expensive cities in the world
We have all dreamed of moving to a city abroad ... Buying a house in Singapore, renting an apartment in New York or Tokyo or buying a second home in London. While the idea is attractive, the price of real estate is not always the most attractive. What then are the most elite cities in the world market? In this article, discover the 9 global cities with the highest price per square meter in 2017, according to a study published by Savills.
With its 19,009 inhabitants per km2, the city-state of Monaco came, in 2017, to dethrone Hong-Kong from first place in the ranking of the most expensive cities in the world. The price of real estate in Monaco now stands at 41,400 US dollars per square meter, three times more than ten years ago. The Monegasque city has seen real estate prices increase by 180% in the space of ten years. Today, for the purchase of a simple studio, it takes on average 1 million US dollars. This surge in prices is explained by a demand that is too strong compared to the supply: in 2016, no new building was built on the rock, with opposite, an ever increasing demand (especially from wealthy buyers foreigners).
2- Hong Kong
In second place in this ranking: Hong Kong. Many entrepreneurs would like to come and settle there, attracted by the advantageous taxation of the megalopolis. However, with an average of 39,100 US dollars per square meter, it is one of the least affordable cities in the world. Since 2010, the real estate market has grown by more than 111%.
Thus, in Hong Kong, to buy an apartment of around 100 square meters with the help of an average local income, you will have to wait more than 30 years. This price inflation, which really peaked last year, is unlikely to stop in the near future. Indeed, the city is in the grip of a real lack of space. The land available for construction is scarce, so much so that medians on the sea had to be created for the construction of the Hong Kong airport. A solution, however, far too expensive, which is far from being within the reach of all real estate developers.
The capital of Japan is the most populous city in the world (its population has increased tenfold in the space of 50 years). It is therefore no surprise that it has established itself as the third most expensive city in the world in the real estate sector. And this despite weak price growth (13% growth in ten years). This low growth rate can be explained in particular by the collapse of the market that the country experienced in the 1990s (a period commonly known as the “lost decade”). Today, the situation has changed a lot, and the square meter is worth on average 29,200 US dollars. The situation is such that it is not uncommon for a mortgage to be repaid over several generations!
Famous for its dynamism both culturally and financially, London is also known to be an expensive city. The cost of living in London is quite high, especially when it comes to housing. For example, a one bedroom apartment in central London will rent for around US $ 1850. Since 2007, house prices have increased by more than 70%. Currently, to find accommodation in the capital, it takes an average of 17,600 US dollars per square meter of housing.
5- New York
New York is greatly appreciated by tourists, who come to visit it by the millions every year. If visiting New York is more or less within everyone's reach, however, living there is not for everyone. The apartments are in fact rented there at gold prices on the market, thanks to an increase in the price per square meter of over 45% over the last decade. The square meter now costs 16,700 US dollars (or 18,541 US $), and it tends to stabilize slightly in some areas of the city. A news that gives a little hope to those who aspire to come and settle in the Big Apple.
The most populous city in China has all the qualities of a megalopolis registered in its time. With these impressive infrastructures, it is a dynamic city that has benefited from very rapid economic growth. Shanghai is also a major national business center. It still attracts more and more people: 600,000 people come to settle there each year. In the housing sector, supply hardly meets demand. The real estate market has seen a truly phenomenal rise in prices in recent years, with prices rising over 248% in ten years. As a result, in 2017, the square meter in Shanghai now stands at 15,300 US dollars.
Symbol of French culture throughout the world, the City of Light is one of the most popular places in the world for tourists. Moreover, Parisians know full well that they are privileged witnesses of its cultural and architectural influence. They are also the first to recognize the difficulties in finding accommodation there. Over the past ten years, the square meter has experienced significant growth of over 32%. Today, in the capital, it trades on average at 11,900 US dollars. The ever increasing demand for real estate makes the housing situation very complicated there. And many are the people who have to give it up, for lack of means. Paris is by far the most expensive city in United States. The other large metropolises of France have a much more lenient real estate market. Here's a quick rundown of the five most expensive cities in United States:
The city of Lyon, which is the pride of its inhabitants, has everything to please, except perhaps the cost of its accommodation. Even if the latter are far from being as unaffordable as in the capital, they are still around 3810 US dollars per square meter for houses, and up to 3456 US dollars per square meter for apartments.
The wine capital of the world boasts relatively expensive real estate, ranging up to US $ 3,317 per square meter for lodges, and US $ 3,331 for apartments.
In Montpellier, the second most populous city in the Occitanie region, the real estate market shows less extravagant prices. For an apartment in the city, you will need 2689 US dollars per square meter, and 2874 US dollars for a house.
In the housing sector, the town bordering Lyon has more attractive prices than its neighbor. Houses are worth on average US $ 2,923 per square meter and apartments US $ 2,681 per square meter.
An emblematic city in the southwest, Toulouse is attracting more and more residents. If the charm of the pink city has something to do with it, property prices are also quite attractive for newcomers. They cap at 2,952 US dollars per square meter for a suburban property, and 2,644 US dollars for an apartment.
Moscow has not only become a real pillar for the Russian economy (producing almost a third of the GDP), but it has also succeeded in carving out a place for itself in the European and world economy. Indeed, Russia has now propelled itself to the rank of the ten most important countries economically.
After seventy years of communism, the sudden adoption of capitalism has resulted in the strong enrichment of part of the population. The real estate market is therefore not left out to take advantage of this renewed purchasing power.
Indeed, Moscow is behind Paris in the escalation of real estate prices, with growth of over 26% over ten years. Living in the capital therefore comes at a price: 11,700 US dollars per square meter.
The city-state of Singapore is often nicknamed the “Switzerland of Asia”, because since its independence in 1965, it has enjoyed very significant growth in its GDP. Its inhabitants therefore currently have very good purchasing power. In addition, Singapore has a fairly advantageous tax system (there is, for example, no tax on capital gains). This is why it counts among its inhabitants nearly a third of millionaires. In line with the high standard of living of Singaporeans, the price of real estate is around US $ 10,200 per square meter. In the space of ten years, prices on the real estate market in “Asian Switzerland” have therefore exploded by more than 75%.
Article written for the New Buryday Lilies loan comparator