Four belong to China, reflecting its rapid economic growth, and two belong to the United States and Europe; What are the key factors determining prices
What are the main elements that determine the price of a property? And what makes a city in the world one of the most expensive in terms of real estate purchase prices?
Many, including real estate market experts, believe that there is an “invisible algorithm” that combines a number of factors that have practically no equal value if isolated: the history and culture of the city, its location and architecture, the prevailing situation in the country where the real estate is located and the opportunities it offers, the natural environment and climate, the possibilities for its further expansion, of course, bank interest rates and the dynamics of real estate prices in recent years, and many more factors.
As for the cherry on the cake, it seems that it lies in the general aura and glory that accompany each city, the atmosphere and feelings that it creates, the “added value” that it brings with it, which in practice and in the case of shops or business, we would call “air”.
Big and small picture. At the same time, of course, it is known that in addition to the big picture and the decisive role it plays, there are also certain elements of each property that change its value, up or down in relation to the base price set by the city in which location: area and available areas, size and usability, age and condition, local market.
Based on all this and the relevant research data (Statista, 2021), we can identify the ten most expensive cities today to buy real estate. Finding, among other things, that four of them belong to China is another sign of its rapid economic modernization.
Of course, it should always be borne in mind that the prices quoted (all in thousands of dollars) reflect the average cost of acquiring a home and that the differences between popular and elite neighborhoods are obviously significant and sometimes chaotic.
Hong Kong, 1254.44. It is considered by many to be a model of a modern city. The problems with China, to which it is subordinate, under the doctrine of “one country, two systems”, does not seem to have much impact on property prices.
Munich, 1000. The German metropolis and capital Bavaria offers an excellent quality of life and is located in the heart of Europe, and this is reflected in the price of real estate.
Singapore, 915.6. Basically, it is a city-state that has been steadily expanding since independence in 1965 and is the financial, commercial and shipping hub of Asia with a global reach.
Shanghai, 905.83. The most populous city on the planet with more than 26 million inhabitants bears from the past the name “prostitute of the East”, for it has been claimed and conquered over the centuries by all kinds of imperialists.
Shenzhen, 783.86. It is considered one of the least known cities in the world on the list. In the 1990s and 2000s, it was one of the fastest growing cities. It is also known for its parks, festivals and technology industries.
Beijing, 763.5. The capital of a growing superpower with a huge history and culture, it is one of the oldest cities in mankind, with more than three millennia of existence.
Vancouver, 754.62. While its presence in the top 10 most expensive cities for real estate may come as a surprise, the city has three main advantages: it is cultural Babylon, it has immense natural beauty, and is one of the cleanest cities you can find.
Los Angeles, 717.58. The second most populous city in the United States is home to Hollywood and home to many of the world’s most famous and wealthy people in business, culture and the arts. Its “Mediterranean” climate and history enhance its aura … and prices.
Paris, 650.55. City of Light, French Revolution, Commune and May 1968 has always been and remains one of the best destinations in the world. It is no coincidence that it is also one of the most expensive in terms of real estate.
New York, 646.03. Big Apple is one of the most recognizable cities in the world, where, among other things, the idea of the “American Dream” was born. Together with London, these are the only two cities with Alpha ++ status, reflecting their enormous impact on the global economy.