The world's most exclusive real estate markets tell a fascinating story about wealth, scarcity, and the psychology of ultra-affluent buyers. Would you believe that in Monaco, $1 million buys you just 172 square feet? That's literally the size of a small living room—a sobering reality check on what "luxury" truly means at the highest echelons.
Our journey through the five most expensive residential markets globally reveals Monaco commanding a staggering $3,600 per square foot, followed by New York City at $2,554, Hong Kong at $2,444, London at $2,230, and the French Riviera gem Saint-Jean-Cap-Ferrat at $1,971. Each location offers more than just housing; they represent strategic wealth preservation, prestige, tax advantages, and membership in an exclusive global community. For the ultra-wealthy, these properties function almost like currencies—tangible assets that maintain value while delivering lifestyle benefits.
Meanwhile, the American luxury market displays remarkable resilience despite broader economic headwinds. Single-family homes have become significantly more coveted than condos, with sales figures revealing a 12% drop in luxury condo transactions while single-family properties decreased by just 2.9%. This shift highlights a growing preference for privacy, space, and personal sanctuaries. We're witnessing a strategic waiting game where affluent buyers remain patient for perfect properties while sellers carefully time their market entries. The prevailing sentiment views luxury real estate not merely as extravagant spending but as prudent wealth preservation during uncertain times—a physical asset with intrinsic value that can be passed down through generations. What does this relentless pursuit of exclusive property tell us about our collective values and where we seek stability in an increasingly unpredictable world?
Subscribe now to continue exploring the fascinating intersection of global wealth, property, and the psychology driving the world's most exclusive markets.
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Episode Transcript
Have you ever stopped and really thought about what
$1 million gets you in theworld's most exclusive real
estate spots?
Speaker 2 (00:07):
It's a number that sounds huge, but yeah, what does
it actually buy?
Speaker 1 (00:11):
Well, get ready for this.
It's kind of mind-blowing InMonaco that million dollars buys
you just about 172 square feet.
Speaker 2 (00:19):
Wow, that's tiny, Like the size of a small living
room maybe.
Speaker 1 (00:23):
Exactly.
It really puts the idea ofspace, or maybe the lack of
space, into sharp focus.
Speaker 2 (00:29):
It really does.
Trying to imagine fitting yourlife into that.
Speaker 1 (00:31):
Yeah, absolutely, and you know, that amazing fact
kind of leads us into our deepdive today.
Speaker 2 (00:36):
Okay.
Speaker 1 (00:37):
We're going to explore the five most expensive
residential real estate marketson Earth, ranked by price per
square foot.
Speaker 2 (00:44):
The priciest of the pricey.
Speaker 1 (00:46):
That's it, and then we'll switch gears a bit and
look at some really interestingtrends in the US luxury market.
Speaker 2 (00:51):
Sounds good.
Speaker 1 (00:52):
So our goal here is basically to pull out the key
takeaways, share some surprisingfacts and help you understand
what it all means for luxuryproperty globally and right here
in the US.
Speaker 2 (01:02):
Let's do it.
It's fascinating how thesenumbers aren't just about high
prices.
They really tell a story aboutlike extreme wealth
concentration and just howscarce prime real estate is in
some places.
Speaker 1 (01:13):
That's a great point.
It's supply and demand, butlike on steroids.
Speaker 2 (01:16):
Totally On a global supercharged scale.
Speaker 1 (01:19):
So let's unpack this list, topping it way out.
In front actually is Monaco,the Principality of Monaco.
Speaker 2 (01:25):
Prime homes there average around $3,600 per square
foot $3,600 a square foot, andyou know the why is pretty
interesting.
Monaco isn't just a city, it'salmost well unique financially.
Speaker 1 (01:39):
How so.
Speaker 2 (01:39):
Well, it's tiny right , only two square kilometers,
and it's a tax haven.
So basically, it's a magnet forbillionaires.
Speaker 1 (01:46):
Ah, the tax angle, exactly.
Speaker 2 (01:48):
Combine that attraction with well hardly any
physical space.
The supply is just incrediblylimited and the prices just go
through the roof.
Speaker 1 (01:55):
Right, it becomes more than just property.
Speaker 2 (01:57):
It really does.
It's almost like a globalcurrency, a place where huge
wealth can just park itselflegally structured and all that
huge wealth can just park itselflegally structured, and all
that.
Speaker 1 (02:04):
So it's not just showing off status.
It's like a strategic move forthe super rich, almost like a
safe deposit box for capital.
Speaker 2 (02:10):
Precisely, and we're talking about some properties,
the really ultra luxury ones,selling for over five, even
$6,000 per square foot.
Speaker 1 (02:20):
Wow, so it's the whole package.
Then the lifestyle, the fancyharbor full of yachts and zero
income tax.
Speaker 2 (02:27):
That's the allure An exclusive lifestyle at a very,
very exclusive price.
Speaker 1 (02:31):
Okay, so from Monaco, our second stop takes us over
the Atlantic New York City.
Speaker 2 (02:37):
The Big Apple.
Still holding strong at numbertwo.
Speaker 1 (02:39):
Yeah, prime Manhattan spots are going for roughly
$2,554 per square foot.
Speaker 2 (02:45):
And New York's appeal .
Well, it lasts, doesn't it?
It's a top global hub forfinance, for culture.
It just keeps pulling inwealthy buyers and investors
from everywhere, all corners ofthe globe.
Yeah, and you've got thatconstant flow of Wall Street
money, keeping demand super high.
Speaker 1 (03:00):
You definitely see it in those famous addresses,
don't you?
Penthouses overlooking CentralPark, condos on Fifth Avenue.
Speaker 2 (03:05):
The icons.
Speaker 1 (03:06):
Now here's something interesting Even though luxury
prices dipped slightly maybeabout 2% in 2023.
New York is still 8% below itspeak price.
Speaker 2 (03:18):
Hmm, that is interesting.
Speaker 1 (03:19):
So for some people maybe that signals a potential
buying opportunity, or at leastthings have softened just a
little bit.
Speaker 2 (03:25):
Well, possibly, but you have to remember we're still
talking incredibly highstarting prices, so a 2% dip
sounds like something.
Speaker 1 (03:33):
But it doesn't make it cheap.
Exactly.
Speaker 2 (03:35):
It doesn't really change the fact that it's a very
expensive market to get into.
Things like interest rates, thesheer cost of owning these
places, even a dip is more likea small adjustment in a very
inflated market, not really asign that average investors are
suddenly jumping in.
Speaker 1 (03:48):
Good point, okay.
Third destination we're headingto Asia Hong Kong.
Speaker 2 (03:53):
Ah, Hong Kong Fate is for its sky-high property cost.
It lands in third place atabout $2,444 per square foot and
the reason?
Well, it's a super dense city,a major financial center in Asia
, and land is just notoriouslyscarce.
Speaker 1 (04:07):
Always has been.
Speaker 2 (04:08):
Always that physical limit, plus this long history of
intense demand from locals andinternational money, it just
keeps prices way up there.
Speaker 1 (04:16):
Yeah, I read that even a small luxury apartment
can cost millions, and in thereally elite areas like the Peak
.
Speaker 2 (04:22):
Oh the Peak.
Yeah, prices there can easilygo over $10,000 per square foot
for the best places.
Speaker 1 (04:27):
Incredible.
And what's really amazing ishow resilient it's been.
You know, even with politicalshifts, the pandemic slowdowns.
Hong Kong hasn't really lostits spot near the top.
Speaker 2 (04:36):
It.
Even with political shifts, thepandemic slowdowns, Hong Kong
hasn't really lost its spot nearthe top.
It really hasn't Still a keyglobal market.
Speaker 1 (04:39):
OK, number four back to Europe, london.
Speaker 2 (04:41):
London, the UK capital, averages about $2,230
per square foot for primeproperty.
Speaker 1 (04:48):
Why London?
What keeps it so high?
Speaker 2 (04:50):
Well, london's been a safe haven for global wealth
for a long, long time.
You've got the history the toptier schools, a huge financial
sector.
It just makes it incrediblyattractive for investors, and
you know the super rich fromliterally everywhere.
Speaker 1 (05:03):
You immediately think of those areas like Mayfair,
Knightsbridge, Kensington.
Speaker 2 (05:07):
Exactly Synonymous with multi-million pound homes.
Speaker 1 (05:10):
And the buyers are truly global right Middle East,
china, russia.
Speaker 2 (05:15):
Absolutely A real global mix, and what's
interesting is, despite thingslike Brexit causing some jitters
, the luxury market there hasheld up remarkably well.
Prices softened maybe a tinybit at the high end, but it's
still solidly in the top fiveglobally.
Speaker 1 (05:31):
Resilient is definitely the word.
Okay, rounding out the top fiveis maybe a surprise for some
Sauchon-Cap-Cafara in France.
Speaker 2 (05:38):
Yeah, not a huge metropolis like the others.
It's a small town on the FrenchRiviera.
Speaker 1 (05:43):
Commands about $1,971 per square foot for its prime
villas.
Speaker 2 (05:48):
It's this beautiful little peninsula on the
Mediterranean, kind of tuckedbetween Nice and Monaco.
Speaker 1 (05:53):
So why is it so expensive if it's not a big city
between Nice and Monaco?
Speaker 2 (05:55):
So why is it so expensive if it's not a big city
?
It's all about exclusivity.
It's been a playground formillionaires, for celebrities,
for a very long time.
It's purely about the lifestyle, the privacy, the beauty.
Speaker 1 (06:03):
Ah, so seclusion drives the price.
Speaker 2 (06:05):
Exactly Very limited, very desirable properties.
Its appeal is just that Rivieradream.
Speaker 1 (06:10):
And the prices can get even higher right for the
really exceptional places?
Speaker 2 (06:14):
Oh, definitely, and that kind of ultra rich enclave.
You can see prices hitting theequivalent of like sixty six
hundred dollars per square footfor the truly standout estates.
Speaker 1 (06:24):
Wow, so it's the ultimate luxury coastal living
grand villas, amazing sea views.
Speaker 2 (06:30):
That's it, and it shows that you know pure
exclusivity and natural beauty,even without being a major
financial center, can pushprices right up there with the
big global cities.
Speaker 1 (06:39):
OK, so that's the global picture, these
powerhouses.
But what about closer to home?
What's happening specificallyin the US luxury market right
now?
Speaker 2 (06:46):
Yeah, good transition .
Let's dive into that.
We can pull some specifics fromthat.
June 2025 luxury market reportby the Institute for Luxury Home
Marketing.
Speaker 1 (06:55):
Great.
So first big takeaway seems tobe prices are holding firm, even
with economic slowdownselsewhere.
Speaker 2 (07:00):
That's right.
Despite all the financialmarket ups and downs we saw
earlier this year, luxury homevalues across the US have been
remarkably stable.
Speaker 1 (07:09):
Really, how stable are we talking?
Speaker 2 (07:10):
Well, single-family homes the report shows they
increased about 2.2%year-over-year Condos maybe a
bit less 1.4%, and thatresilience.
It really highlights howdifferent the luxury sector can
be.
The buyers in this bracket areoften less affected by, say,
interest rate hikes or generaleconomic worries.
Speaker 1 (07:29):
Right, maybe more cash buyers or different
financing structures.
Speaker 2 (07:32):
Exactly a lot of all-cash deals or very
sophisticated financing.
It insulates the marketsomewhat.
Speaker 1 (07:38):
OK, then there's this interesting thing with
inventory.
It's gone up, but new listingshaven't kept pace.
Speaker 2 (07:43):
Yeah, that's a key dynamic Luxury single family
home inventory what's availablewent up significantly, like 30.2
percent year over year.
Speaker 1 (07:51):
That sounds like a lot more choice for buyers.
Speaker 2 (07:53):
It does.
But here's the twist Newlistings only increased by about
17.9%.
Speaker 1 (07:59):
Ah, so fewer people are deciding to sell right now
compared to how much is alreadysitting there.
Speaker 2 (08:04):
Precisely it suggests sellers being cautious.
They seem to be waiting maybefor clearer economic signs,
better conditions, beforeputting their high value homes
on the market.
Speaker 1 (08:13):
And that keeps prices from falling, even with more
inventory overall.
Speaker 2 (08:17):
Exactly, it keeps some upward pressure on prices,
creates this kind of tension inthe market, got it?
Speaker 1 (08:22):
And what about what buyers actually want?
Any shifts there?
Speaker 2 (08:26):
Definitely seeing a clear preference shift.
Luxury buyers are leaning moreand more towards single family
homes.
Speaker 1 (08:32):
Seeking privacy space , that kind of thing.
Speaker 2 (08:35):
You got it Privacy, space exclusivity.
The numbers show it Condo salesactually dropped nearly 12%
year over year.
Speaker 1 (08:41):
Wow, quite a dip.
Speaker 2 (08:43):
Yeah, but single-family home sales only
slipped by about 2.9%.
Speaker 1 (08:46):
Much less, so it's really about the lifestyle
benefits.
Speaker 2 (08:49):
I think so.
It points to a strong demandfor properties that offer more
lifestyle control, maybe feelmore resilient to outside
pressures like wanting asanctuary.
Speaker 1 (09:00):
Yeah, that makes sense, which kind of leads to
this broader idea of peopleseeing luxury real estate as a
stable investment.
Speaker 2 (09:08):
Absolutely.
Especially when other marketsfeel uncertain, affluent buyers
often turn to luxury property assomething tangible, something
stable.
Speaker 1 (09:16):
Less about just chasing quick profit.
Speaker 2 (09:18):
Right.
The motivation isn't alwayspurely about aggressive returns.
It's often more about security,long-term stability, enjoying
the lifestyle the propertyoffers and also importantly,
legacy value.
Speaker 1 (09:29):
Passing it down.
Speaker 2 (09:30):
Exactly, Thinking about it as an asset for future
generations.
It's a different way of lookingat investment.
Speaker 1 (09:36):
So all these things together stable prices, the
inventory mismatch, buyerpreferences, the investment view
it sounds like people areplaying a careful game right now
.
Speaker 2 (09:47):
You could definitely call it a strategic waiting game
.
That applies to both buyers andsellers in the luxury space.
They're being very deliberate.
How so Well, buyers seempatient.
They're willing to hold out forthe perfect property, the right
conditions that match theirlong-term plans.
Speaker 1 (10:02):
Not just jumping at anything.
Speaker 2 (10:04):
No, and sellers they're being really careful
about when they list and howthey price.
They want to hit the market atthe optimal moment.
Speaker 1 (10:11):
So both sides are kind of watching and waiting.
Speaker 2 (10:13):
It seems that way.
Yeah, both seem to beanticipating maybe stronger
market activity later in theyear, setting the stage for
potential shifts then.
Speaker 1 (10:21):
OK, so let's try and tie this all together.
We looked at these incrediblyexpensive global markets Monaco,
new York, hong Kong, londonSaint-Jean-Casparat Quite a list
.
Hong Kong LondonSaint-Jean-Cauffarote Quite a
list.
And whether it's a tax haven onthe Riviera or a penthouse in
Manhattan, it's clear theseplaces offer way more than just
housing.
Speaker 2 (10:41):
Oh yeah, it's about prestige, definitely A sense of
stability too, like we justtalked about, and, of course,
access to a very exclusivelifestyle.
Speaker 1 (10:50):
So for the people buying there it's kind of a
double win a status symbol and asmart investment strategy.
Speaker 2 (10:55):
Often, yes, it serves both purposes for the ultra
wealthy.
Speaker 1 (10:59):
And connecting that to the bigger picture.
Global demand for this primereal estate isn't going away, is
it?
Speaker 2 (11:05):
Doesn't look like it.
Demand remains incredibly highand it's driven by more than
just people getting richer.
Like what buy more than justpeople getting richer.
Like what?
Well, things like geopoliticaluncertainty play a role.
It encourages wealthyindividuals to diversify their
assets, maybe even look intoalternative citizenships, and
real estate in stable, desirablelocations is always seen as a
safe haven for capital.
Speaker 1 (11:25):
A safe place to park money when things feel unstable
elsewhere.
Speaker 2 (11:28):
Exactly so, given that you have more millionaires
and billionaires globally allcompeting for these limited
spots in marquee cities.
Well, the expectation is priceswill likely keep trending
upwards.
Speaker 1 (11:39):
It seems almost inevitable in those top spots.
Speaker 2 (11:41):
Basic supply and demand again.
Speaker 1 (11:42):
Yeah.
Speaker 2 (11:43):
Just at the very highest level.
Speaker 1 (11:44):
Which brings us to a final thought, maybe something
for you, our listener, to chewon.
Beyond the huge price tags andthe investment angles, what does
this relentless chase for ultraluxury property tell us about
what we value, About securityaspiration, especially in a
world that feels so connected,yet often so uncertain?
Speaker 2 (12:05):
That's a deep question.
What does it say about ourpriorities and where we seek
stability?
Definitely something to thinkabout.
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