The Price of Luxury
Looking ahead to the remainder of 2016 and beyond, the global prime property market appears set to continue on a slow but steady growth cycle, with prices and sales volumes on an upward trend in some markets. Many premier global centers—as well as prized second-home resort destinations continue to command exceptional prices for prime property. A snapshot of 36 luxury primary and resort housing markets (See Exhibit 5) reveals that on a price-per-square-foot basis, global economic hubs Hong Kong, London, and New York are the most expensive markets for luxury real estate worldwide by a significant margin. Million-dollar-plus homes in the majority of other luxury housing markets span from just under $1,100 per square foot to $200. The exception to this rule is the tiny city-state Monaco, which towers ahead of all other markets and averages more than $4,500 per square foot for luxury homes.