The latest Wealth Report for 2024 from property broker Knight Frank sheds light on how much living space $1 million can buy in various cities worldwide. The report provides insights into prime residential property markets across the globe, highlighting significant variations in property prices and living space.
Monaco: The Pinnacle of Luxury
Monaco emerges as the most expensive market for prime residential property, where nearly $12.9 million is required to be in the top 1%. In this affluent city-state, a square foot of prime property costs over $5,800, making it a haven for the ultra-wealthy.
Prime Property Index
Knight Frank’s Prime International Residential Index (PIRI 100) compiles data for 100 luxury residential markets globally. The top 5% of each market by value is categorized as prime property. In 80 of these markets, luxury prices remained flat or experienced positive yearly growth, with an average increase of 3.1% in 2023. Notable growth was observed in Manila and Dubai.
Global Disparities
Hong Kong follows Monaco closely, with 237 square feet of prime property totaling $1 million, equating to approximately $4,219 per square foot. Other prominent cities like Singapore, London, Geneva, and New York offer living spaces ranging from the mid-300s to the low-400s square feet per $1 million.
Second-Home Destinations
The report also explores second-home destinations, with Aspen, Colorado, topping the list with 215 square feet of prime property per $1 million. Other sought-after locations include Verbier, Switzerland, and St. Tropez, France, offering varying levels of luxury living space.
Wealth Thresholds
According to the report, Americans need a net worth of $5.8 million to be in the top 1% by wealth, reflecting a significant increase from the previous year’s cutoff of $5.1 million. This surge is attributed to the robust performance of the nation’s economy, leading to a 7.2% rise in ultra-high net worth individuals in North America.
In conclusion, Knight Frank’s Wealth Report offers valuable insights into global real estate markets, highlighting the diverse landscape of prime residential properties and the wealth thresholds required for luxury living across different regions.
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