A wealthy buyer with $1million (around £800,900) to spend on property in the tax-haven of Monaco will be left with just 17 square metres (or 182 square feet) of space, the equivalent of a double bedroom.
While luxury areas in Monaco, Hong Kong and New York offer rich buyers the smallest amount of space per $1million, London takes fourth place, with buyers getting just 30 square metres to play with.
By contrast, a buyer in Cape Town, South Africa, can get a palatial 209 square metres, Knight Frank’s 2017 Wealth Report reveals.
In the most sought after areas of Paris, Sydney and Los Angeles, it is possible to get 55, 59 and 61 square metres of space per $1million, the findings suggest.
Monaco’s property market has held the crown for offering the worst value per square metre for six years, with house prices remaining largely ‘static’.
Edward de Mallet Morgan, Head of Knight Franck’s Monaco desk, said: ‘We expect prime prices to increase by 5% in 2017 as Monaco invests heavily in its infrastructure (new tunnels and roads) which will continue to attract the world’s wealthy, along with the principality’s tax and lifestyle benefits.’
‘New York (26) and London (30) have regularly switched positions over the years, but the strength of the US dollar and softening prices in prime central London in 2016 have enabled New York to edge ahead’, Knight Frank said.
Excluding London, many desirable areas in European cities like Berlin and Paris offer better value compared to further afield places like New York or Hong Kong.
At 162 sq m, the to-end residential market in Dubai finds itself sandwiched between Melbourne and São Paulo, underlining the emirate’s relative affordability compared to other cities, Knight Frank said.
In 2015, figures from the Royal Institute of British Architects revealed the average size of a three-bedroom home in the UK was 91 sq, or 979 sq ft.
Last year, data measuring the cost per sq m of floorspace revealed the real price of UK property surged 251 per cent in the last 20 years to an average of £2,216.
While it is possible to get around 209 sq m of space for $1million in the high-end areas of Cape Town, this is 18 per cent smaller that the 255 sq ft the same amount bought in 2015.
In the last year, the value of the world’s leading prime residential property markets slowed from 1.8 per cent in 2015 to 1.4 per cent in 2016.
In prime areas in Moscow, Toyko and London, property prices have dropped by over 11, 8 and 6 per cent respectively.
By contrast, prices in the high-end areas of China’s Shanghai, Beijing and Guangzhou have grown by over 26 per cent year-on-year.
Originally published at Mail Online