It’s no mystery that the housing market right now is insane. Renting is just as bad, but it’s almost impossible to buy a home. But while we’re struggling, it’s nice to look at how we compare to other areas. For example, where can you find the most expensive real estate in the world?
Whether you’re looking at where to avoid when shopping for a home, or maybe the best investment opportunities when house flipping, these areas are worth astronomical amounts. So, let’s break down where the most expensive real estate in the world is and why.
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Where Is the Most Affordable Real Estate in the World?
When looking for the cheapest real estate, you might want to look at Columbia and Italy. Colombia averages around $63 per square meter, or roughly $1,245 on an average property. As for Italy, the country is the cheapest place to buy a house in Europe, and the world, with an average cost between $1,1o0 to $1,500 per square meter around Sicily and Calabria.
Why Is Real Estate So Expensive?
Real estate has always been pricey. But why is that? Why is real estate expensive to begin with, and why now more than ever? Within the past year, the price of a home has jumped more than 15%, with some cities in the United States like Austin and Nashville doubling that.
This is of course due to inflation. With the rise of other costs, like grocery bills and gas, other bills have rose as well, like mortgage rates. When inflation increases, anybody lending money knows that they’re not going to get their real value back, so they charge higher rates to offset the price increases.
Along with this, wages are not matching inflation. Expenses will always rise, but if wages aren’t matching those increases, of course more and more things, like real estate, will be out of reach to many.
Where Is the Most Expensive Real Estate in the World?
6. Singapore
The first on the list of most expensive real estate in the world is Singapore at an average $1.2 million, or $1,060 per square foot. Despite the land limitations, Singapore has only continued to rise in statue. But of course, the demand is rising as well, and builders are struggling to meet those needs. These are just a few reasons why the price on real estate is so high.
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5. Hong Kong Island
Hong Kong, known for its expensive cities thanks to its highly dense population, higher demand, and for its tax-friendly economy. The city averages at $1.25 million, or $2,800 per square foot. Hong Kong is rich with nightlife and attractions with world-class Metro system that only increases the city’s value. It’s also known for being a global financial hub and a trade and investment hub.
4. California
San Francisco, California is known for having the most expensive real estate in the world as well, with an average cost of $1.3 million, or $995 per square foot. San Francisco is known for being densely populated, its extraordinary hills, magnificent landscapes, and having rich culture. The city is also a popular tourist location for those wanting to see the popular Golden Gate Bridge or ominous Alcatraz Island. Interestingly enough, Los Angeles also has one of the most expensive real estates in the world, averaging around $1.2 million.
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3. Florida
The United States has several cities with expensive real estate, but the winner goes to Florida. With an average cost of $1.7 million a home, equaling to $851 per square foot, Palm Beach, Florida is home to luxury. The real estate specifically along the eastern seaboard flaunt their money, as they hold rich history while being exclusive, especially since there’s such a lack of space and land. Whoever lives in these areas paid a pretty penny for a spectacular view.
2. Switzerland
Switzerland, known for their luxurious chocolate, cheese, and watches, is next up on having the most expensive real estate in the world. Specifically, Basel, Switzerland, located on the Rhine River. The city is considered the country’s cultural capital and is the third most populous city in the country. With an average house price of $2.3 million, or roughly $922 per square foot, you can live in a town full of many and varied museums.
1. Monaco
Monte Carlo, Monaco earns the title of most expensive real estate in the world, with an average price of around $5.4 million, which equals to about $4,735 per square foot. The small European city is located on the Mediterranean Sea. It’s known for harboring the rich and famous, offering luxurious access to yachts, gambling. This is home to primary and secondary residential homes and get-away-houses the ultra-rich.
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