Real estate firm Savills has posted an analysis of home prices in some of the world’s largest cities by square meter. This allows for an accurate comparison regardless of home size. One square meter equals 10.8 square feet.
Monaco had the highest price at $57,120 per square meter. Hong Kong ranked next at $47,520, and New York City followed at $26,640. The next U.S. city on the list was San Francisco, which ranked 13th at $16,440.
Savills expects Monaco to keep its lead: “International interest in Monaco was sustained throughout 2020 and Savills expects to see a surge of demand for both sales and rentals once travel restrictions are lifted.”
Monaco has two distinct reasons that drive its high real estate prices. The first is average income. Monaco’s is the highest in the world at $186,080, followed by Bermuda at $117,730. The United States ranks ninth at $65,850, per World Data.
Monaco also has very little land on which to build residential real estate. It ranks in size second from the bottom among 194 nations at 0.78 square miles, just above Vatican City where the number is 0.19 square miles. Monaco is also the most densely populated nation in the world, which leaves almost no place for residential real estate expansion.
Though Monaco’s real estate value is far and away the highest of any city, there are 31 places in the world with real estate values of at least $3,000 per square meter.
To determine the cities with the most expensive homes in the world, 24/7 Wall St. reviewed the Savills list of cities with the highest prime capital values and prime monthly rents per square meter. The cities on this list are ranked based on estimated prime capital value per square meter. All figures are converted from euros to U.S. dollars.