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 the size and type of property one can acquire. While it might only buy a micro or shoebox-sized apartment in an international financial hub, it can secure a much larger and more spacious property in other key global cities.
According to data by Knight Frank, a leading global real estate consultancy, a $1 million would fetch only a few square metres of prime property in Monaco, one of the wealthiest financial hubs for millionaires, and Hong Kong. These cities are known for their severe supply constraints and sustained global demand, making property extremely expensive.
Other financial centres like Singapore, London, and New York offer marginally more room for the same budget. However, other key global cities such as Dubai and Melbourne provide significantly larger homes despite rising prices, making them relatively more affordable. In Mumbai, one could get approximately 1,065 square feet of space for $1 million, which is slightly more than what the same amount would buy in Dubai, Melbourne, Madrid, or Lisbon.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, notes that property values in Dubai increased by an average of 10% last year. Despite this growth, Dubai remains relatively affordable compared to other global cities. “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,” he said.
This variability in property values highlights the importance of considering location when making a real estate investment. While cities like Monaco and Hong Kong offer unparalleled luxury and prestige, they come at a premium. On the other hand, cities like Dubai and Mumbai provide excellent value for money, offering larger living spaces and more affordable options within the same budget.
For investors and homebuyers, understanding these market dynamics is crucial. It can help them make informed decisions that align with their financial goals and lifestyle preferences. Whether you are looking for a luxurious penthouse in a bustling financial hub or a spacious family home in a more affordable city, a $1 million budget can take you far in the global property market.
