In the global real estate market million-dollar properties come in many shapes and sizes.
Historic townhouses in leafy London suburbs, five-bedroom villas in Tuscany, penthouse apartments in New York City, swanky residences in modern Dubai skyscrapers – the variety is endless.
It can be difficult to compare housing markets in different economies with different expectations, but house prices around the world are taking a hit from rising interest rates.
An easier challenge is to see what the same $1m buys in different cities around the world.
The sum once represented the height of luxury, but the homes of the mega-rich can change hands for hundreds of millions of dollars. The five most expensive properties in Dubai this year sold for a combined fee of $391m.
Those properties are out of reach of all but a tiny handful of the wealthiest people. But the total number of millionaires worldwide was estimated to be 62.5m at the end of 2021.
$1m real estate around the world
Where do millionaires live? What are there properties like? Are they all living in mansions and huge apartments? Or is the notion of a million-dollar home not as grand as it once was? The answer is, it depends where you look.
In Hong Kong’s expensive real estate market a million dollars barely buys a compact studio. In Sydney, Australia an investment could lose almost a third of its value within two years. Paris might offer iconic Eiffel Tower views, but finishes can be dated compared to an ultra-modern Dubai apartment on the Dubai real estate market. In Tuscany, Italy a million dollars it is enough for a five-bedroom villa and in St Lucia in the Caribbean you can be lounging in a private pool in a luxury home.
Arabian Business explores the global real estate market to find out just what $1m buys these days.
Location: Dubai
Price: $1.09m
Size: 1,396 sq ft
Property: Prices are going up as the Dubai real estate market booms and there are the occasional mega-properties such as the $163m villa on Palm Jumeirah purchased by Mukesh Ambani. But $1m still gets you a very nice pad in Dubai. Knight Frank is currently advertising a three-bedroom apartment in the Peninsula Four, The Plaza, in Business Bay for a slightly over the budget at $1.09m.
The high-spec apartment has three bedrooms and four bathrooms and panoramic views of Dubai. Shared, yet private, swimming pool, tennis and squash courts, gym and waterfront living alongside the Dubai canal are provided at the lifestyle destination.
Location: Tuscany
Price: $1,026,808
Size: 6,329 sq. ft
Property: Real estate agents, perhaps predictably, say there has never been a better time to invest in property in Tuscany. While that may turn out to be hyperbole it is clear that a strong dollar and struggling Euro led to many American investors looking to Europe for second homes.
Prices in Florence, Tuscany’s capital, dropped by 1.6% in the first quarter of this year, in stark contrast to locations such as Dubai or Miami where there have been sustained increases.
The 17th-century hilltop villa has impressive views of the valley below and enormous gardens. Restored by a prominent architect in 1945 it is modernised from its original appearance, but retains charming characteristics.
Location: New York
Price: $970,000
Size: 1,813sq ft
Property: Spending a million dollars on a home in New York can give wildly different results depending on the neighbourhood. A luxury property in the New York real estate sector is considered to be anything in the $5m-$10m price band according to Bloomberg calculations.
In Manhattan the median price of listed property is $1.2m. Real estate website Zillow lists this three-bedroom penthouse apartment in New York’s Upper East Side.
A 24-hour doorman, fitness centre and communal rooftop deck are features of the building on 74th street and the three-bedroom home is spread over two levels and includes modern appliances and light-filled city views.
Location: St Lucia
Price: $1m
Size: On application
Property: Caribbean island St Lucia is known for its pristine beaches, coconut-laden palms, verdant mountains and tourist-friendly resorts. Nature-lovers and sunseekers have made it a holiday hotspot, but real estate prices are moderate considering the scale and style of property available.
Unlike more competitive and advanced economies it is an area where $1m still buys a dream home.
Yes, there are budget-busting properties such as a $17.5m villa on the market, but $1m still buys a lot of home. On the island’s West Coast this 5-bedroom villa with private pool, sea views, large sun deck and terrace and spacious tropical gardens is offered. Set amid surrounding jungle it is listed by agents as being prime real estate to convert into a boutique hotel.
Location: London
Price: $1,065,000
Size: 1,260sq ft
Property: Super-rich investors have been pushing up prices for real estate in London for decades and the trickle-down effect has seen prices soar in all price bands.
The disastrous mini-budget that brought an early end to the tenure of Liz Truss as Prime Minister saw prices waiver amid economic uncertainty. Property website Rightmove lists thousands of properties in London for more than $1m.
Typical of the properties available for $1m in and near London is this grade-two listed property in the upmarket leafy suburbs of Richmond about 10km outside central London. The property has three bedrooms and is close to London’s Richmond Park. The home has a garden and is in need of renovation.
Location: Singapore
Price: $1m
Size: 1,163sq ft
Property: Although rising interest rates were predicted to hit Singapore’s property market hard, Bloomberg reported last month that a resilient real estate sector had withstood pressure and private home values actually increased in Q3 of this year.
A typical property in the $1m price range is the two-bedroom, two-bathroom apartment in a modern building above the Bedok Mall development. 15 minutes away from Singapore’s Central Business District it has shared use of swimming pool and a tennis court.
City: Cape Town
Price: $986,220
Size: 5,274 sq. ft
Property: Amid rising interest rates and strong economic headwinds real estate in South Africa experienced unprecedented levels of activity for periods of 2022. Even with lingering threat of recession South Africa, and Cape Town in particular, experienced a boom during and after the height of the Covid pandemic.
Despite price increases a million dollars still stretches a long way in Cape Town. Property website Rightmove lists this bespoke home with eco-swimming pool, large open-plan kitchen, designer wooden deck and impressive views. One of the largest homes listed here it is also one of the view to have unique features and modern styling.
City: Paris
Price: $1.09m
Size: 1,090sq ft
Property:
Paris, like London, has a mature real estate market that has been active for centuries. Luxury properties in the city have sold for record prices this year with dollar investors snapping up prime real estate. The average price of prime real estate in Paris (homes that sell for more than $2.9m) has spiked 9% this year to $5.6m this year.
The $1m budget set by Arabian Business in this investigation does not stretch far in the city’s most desirable neighbourhoods. Looking further afield a typical property looks like the three-bedroom apartment in a beautiful old building in the city’s 10th Arrondissement. Popular with Parisians rather than tourists it has excellent transport facilities and is considered up and coming part of Paris for investors.
City: Sydney
Price: $1.07m
Size: 1,700sq ft
Property: Real estate in Sydney is in decline. Prices have fallen by more than 10 per cent since a peak in February, and the Reserve Bank of Australia is estimating that values may fall as much as 20 per cent by the end of 2024 in the steepest decline since the 1980s in Australia.
It may be considered a correction in a city that is regarded as one of the least affordable in the world and the most difficult to afford a property in. The million-dollar price tag may stretch further by the end of next year if prices do fall, but it still buys a generous home with amenities and excellent location.
A shared swimming pool, large entertainer’s balcony with views of the Sydney harbour and three large bedrooms are included with this property currently on the market in Sydney. Larger properties are offered in suburbs, but this central business district offering is within walking distance of many Sydney attractions.
City: Hong Kong
Price: $1.02m
Size: 503sq ft
Property: As an investment property, it might be a good time to avoid the notoriously expensive Hong Kong. Goldman Sachs recently forecast that home prices could fall by as much as 30% next year as the once thriving real estate market enters a sharp decline. In a city famous for the high cost of living the property available is more modest than in other locations around the world. Property website Hong Kong Homes is advertising a one-bedroom, one-bathroom flat in the 20-year-old Bellevue Place in the city’s Sheung Wan neighbourhood. There is shared use of a gym and outdoor swimming pool and limited views of Hong Kong’s busy skyline.
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