What $1 Million Buys in Global Property Markets: From Monaco to Mumbai

A million dollar budget for property may seem substantial, but its purchasing power varies significantly across prime locations in global markets. Factors such as demand and land supply play a crucial role in determining what you can get for your money. While a million dollars might only buy you a micro or shoebox-sized apartment in an international financial hub, it can secure you a much larger property in other key global cities.

According to data by Knight Frank, a $1 million would fetch only a few square meters of prime property in Monaco, one of the wealthiest financial hubs for millionaires, and Hong Kong. These cities reflect severe supply constraints and sustained global demand, making property extremely expensive. In Monaco, for instance, the average cost per square meter can be astronomical, often exceeding $10,000.

Other financial centers, including Singapore, London, and New York, offer marginally more room for the same budget. However, these cities still come with a hefty price tag, and the properties you can afford are typically smaller than what you might find in less expensive cities.

In contrast, other key global cities like Dubai and Melbourne offer larger homes despite rising prices, making them relatively affordable. In Dubai, the property market has seen a 10% increase in values over the past year, yet it remains a more affordable option compared to other global cities. Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, notes, “When you put Dubai in that global context, it is still relatively affordable despite all of the double-digit growth that we have seen so far in this cycle.”

In Mumbai, a $1 million budget can get you approximately 1,065 square feet of space, which is slightly more than what you might get in Dubai, Melbourne, Madrid, or Lisbon. This makes Mumbai a relatively attractive option for those looking to maximize their budget in a major global city.

The disparity in property prices across these cities highlights the importance of understanding local market conditions and economic factors. For instance, cities with high demand and limited land supply, such as Monaco and Hong Kong, will naturally have higher property prices. On the other hand, cities with more available land and a growing economy, like Dubai and Mumbai, offer better value for money.

For potential buyers, it's essential to consider not just the size of the property but also its location, amenities, and future growth potential. While a smaller property in a prime location might seem less appealing, it could offer better long-term investment returns compared to a larger property in a less desirable area.

In summary, a million dollars can buy you a wide range of properties depending on the city. From a few square meters in Monaco to a spacious 1,065 square feet in Mumbai, the global property market offers diverse options for buyers with a $1 million budget. Understanding these differences can help you make a more informed decision when it comes to investing in property.