Real estate is a booming sector and investing in real estate is the most lucrative option. A majority of savvy investors always look for attractive investment options – not just for returns and investment growth but this association is a symbol of pride and poise, too. Buying a luxury property is not just about an emotional instinct or spending money on your favourite property. It also involves taking care of various aspects before buying it.
According to industry experts, your expectation from this kind of hefty investment should not be limited to a particular development, developer or country but you must look around for the best deal available. When investment is not a constraint and choices are limitless, it is crucial to understand that luxury homes can look different from country to country and city to city – even though, you keep the same budget bracket.
Currently, what is real estate investment all about?
After the temporary pandemic slump, the dynamics of real estate markets have completely changed. According to Knight Frank, the property prices have dropped somewhere and also increased elsewhere – exactly like the demand.
A good or bad deal in real estate majorly depends upon location, which is the most significant factor. After location, another important factor is the personal appeal – a certain class may love to own a lavish apartment complemented with world-class facilities and the others may look for a state-of-the-art manor.
Moreover, certain cities are more attractive to people over the others and the competition becomes fiercer there, which leads to higher demand and higher prices.
What can you buy in $1 Million around the world?
Let’s fix the budget to $1 Million and see what we can shop around from the best real estate markets around the world.
To help potential investors make a well-informed investment decision, we have fetched real estate data from some of the highest in-demand cities. Before that let’s have a look at the current exchange rate:
The estimated conversion rate of $1 Million (USD)* is:
- AED 3,670,000 – (UAE)
- £ 812,000 – (UK)
- € 958,700 – (Euro)
*As per currency exchange rates of 17th May 2022.
Monaco is the second-smallest country by area in the world but is one of the most densely populated countries. It is the most expensive city (or country) on this list. According to Knight Frank’s latest report, you can only get 157 sq. ft. of prime property in Monaco, for $1 million (USD).
Hong Kong – China
The second most expensive city is Hong Kong, China – in terms of real estate. The demand for residential properties outdoes the land supply, which leads to high housing prices. Another reason is government policies and regulations on zoning and planning, which leads to a rise in property prices.
Just 7% of the total is designated for residential use, which compels citizens to live in micro apartments. According to this report, investors can get 229 sq. ft. of prime property in Hong Kong, China against the figure of $1 million (USD).
London – United Kingdom
The prices of properties in UK are astronomically high and when it comes to London, the capital city is always a part of the world’s most expensive cities to buy properties. The city is the world’s financial hub, the most popular tourist destination and is known to offer incredible job and business opportunities. Every second high-net-worth individual wants to live there.
Though several cities claim to be the top tourist destinations but for sheer exclusivity, no other place can come closer to it. In short, there is no place like London and when the competition is so fierce, the property prices can be expected to rise further. In London, savvy investors can buy 329 sq. ft. of luxury property for $1 million.
New York – United States of America
Depending upon the region and city where you want to buy properties in USA, you can easily get anything from a 2 bedroom lavish apartment to a mansion. On average, New York is considered one of the most expensive real estate markets in the world. A property buyer can purchase 358 sq. ft. of prime property for $1 million.
Commercial and residential property prices, office and retail unit rents and residential property rents cost way more in New York than anywhere else in the USA. Moreover, vacant land is scarce in New York City and the competition for potential development sites is aggressive. The demand for the available land for new residential and commercial development mostly surpasses the supply, which leads to a further increase in property prices. Every other company wants its presence – particularly in Manhattan, which leads to a more competitive market.
Property prices in Singapore have recently climbed and are expected to continue on the upward trajectory. Though the government is striving to coo the market but it seems otherwise. Limited supply and strong demand coupled with lower interest rates have led to insanely high property prices in Singapore. Currently, a savvy investor can buy 381 sq. ft. of prime property in Singapore for $1 million (USD).
The global pandemic has left people with more savings and a few others who were working in digital and medical fields had more money, which paved its way into real estate. A certain percentage of people invested in their first homes, while the rest used the savings and profits to upgrade their existing homes.
What is $1 Million good for in other markets?
These are the top five cities in the world, with the most expensive real estate markets in the world. Let’s have a look at a few other popular real estate markets.
Sydney – Australia
Sydney is one of the most popular cities in Australia, where competition for real estate is complex. For $1 million (USD), you are likely to secure 446 sq. ft. of prime property in this city. In surrounding suburb areas like Bondi, Maroubra and Rose Bay you can get a reasonably designed 1 bedroom apartment for $1 million.
Miami – United States of America
Miami is one of the most competitive real estate markets not just in the USA but all over the world. Its attractive tax incentives, capital appreciation and the year-round favourable weather are a few of the features that make it the most attractive real estate market in the country. It is one of the most visited cities in North America and during the pandemic, every second high-net-worth individual in the USA was planning to buy property in Miami. For $1 million, you can get 833 sq. ft. of prime property in Miami.
Dubai – United Arab Emirates
Dubai is one of the most attractive cosmopolitan cities for living and its real estate sector is always in high demand. Recently, the way it has overcome the COVID-19 induced global pandemic, it is commendable. The property market crisis is also over – demand for properties in Dubai is increasing again and so are the prices.
The opening of international borders, the launch of the global event Expo 2020 and the new residence visa programmes have proved to be a game-changer for Dubai real estate sector. Currently, the potential investors can get 1,469 sq. ft. of prime property in Hong Kong, China against the figure of $1 million (USD).