_How much real estate can one million dollars buy you globally?

While the PIRI 100 helps us to gauge where a location is in terms of its property market cycle, this chart gives a picture of the value offered by key global residential markets in relation to each other. 

We have selected 20 prime city markets and calculated, based on the typical luxury residential value for each city and the exchange rate at the end of 2016, how many square metres US$1m would buy in each. 

The top four, Monaco, Hong Kong, New York and London, jostle for position each year. The gap between this tier and the rest of the pack is significant, regularly exceeding 12 sq m or, in monetary terms, US$10,000 per sq m. 

Since we started this exercise six years ago, Monaco has held on to the top spot – and values have remained largely static. At the end of 2016, US$1m would have bought a diminutive 17 sq m in this exclusive 2 sq km enclave, much the same as in 2010. 

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. 

These latest results also highlight the relative value of key European cities such as Paris (55) and Berlin (87), where for US$1m you can buy significantly more than in New York or London. 

Despite both cities recording strong price growth, there is a 51 sq m differential between the two top Australian cities, Sydney (59) and Melbourne (110). 

At 162 sq m, the top residential market in the Middle East, Dubai, finds itself sandwiched between Melbourne and São Paulo, underlining the emirate’s relative affordability. 

Compared with Monaco’s 17 sq m, US$1m buys a palatial-sounding 209 sq m in Cape Town, although this is 18% smaller than the 255 sq m the same sum bought in 2015. This shrinking floor space is attributable to both currency (the rand strengthened against the US dollar in 2016) and rising prices on South Africa’s Atlantic seaboard.

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