Property group, Knight Frank, has released its 2019 Wealth Report showing how the world’s ultra-wealthy live.
One of the key focuses of the report is the luxury residential property market and the cost of property around the world.
According to Knight Frank, Monaco is still one of the most expensive places to live on earth – with one in every three people in the principality classified as a millionaire.
This is reflected in the region’s property prices as Knight Frank estimates that it costs an average of $1 million to buy 16 square metres of property.
In comparison, those living in Hong Kong ($1 million for 22 square metres) and New York ($1 million for 31 square metres) can expect to pay a relative fortune.
“Burgeoning rental demand, limited supply and, in most cases, buoyant local economies mean four European cities, led by Edinburgh (+10.6%) and Berlin (+10.5%) make the top ten, despite slower growth across the eurozone,” Knight Frank said.
It added that capital flight, particularly from politically volatile emerging markets, continues to fuel demand.
While Cape Town is further down the list, it is still one of the most top most expensive cities for property in the world according to Knight Frank, with $1 million buying you around 177 square metres of prime property in the city.
Notably Knight Frank estimates that Cape Town’s property prices will continue to rise alongside a number of other European cities.
“The next 12 months will see a shift in the performance of global property markets, as purchasers and investors respond to greater uncertainty in the global economy, a proliferation of market regulation and the rising cost of debt,” it said.
“Trade tensions, political events and an increasing debt burden, alongside rising interest rates, will conspire to ensure that there is a slowdown in economic growth across the world in 2019.”
“Of the cities that we forecast, we expect that five (Buenos Aires, Dubai, Hong Kong, Mumbai and Shanghai) will see prices fall this year, two (New York and Singapore) will see prices remain static and that the remainder will see prices rise – albeit modestly.
“Key European cities, along with Cape Town lead with the highest growth. These are increasingly popular investment hubs for European and global investors, with a growing presence from Chinese buyers.”