Global residential real estate since 2020 has generally held up well in developed countries and has remained strong in all major global economies ever since.
The rate of price growth has never been so high since the 1990s. It is + 9.4% increase in real estate prices in the world in the 1st quarter of 2021 (source: OECD).
Agence Etoile, an international real estate network affiliated with the World Property Business Club, presents the 2021 price overview in the main world capitals.
After the health crisis, do large cities have a future?
Does the flight of city dwellers to medium-sized towns mark the end of megalopolises ? We doubt it. In the long term, cities will continue to be centers of decision-making, innovation and prosperity. According to Oxford Economics, urban areas produce more than 80% of global GDP, this share will increase to 90% by 2030.
Real estate in the world: United States
Los Angeles, the capital of the global digital industry, has grown into the world’s largest real estate market by volume. In Beverly Hills, a 900 m² house on 1,500 m² of land sold for 13 million euros. In the city center, high-end properties sell for an average of 8,800 euros / m².
New York is demoted to second place in the world in 2020. One square meter in the city amounts to € 13,400. The price range starts from € 9,640 and up to € 17,910.
Miami is a continuously growing city. The climate is advantageous with maximum sunshine all year round. Investors know how good sunshine is for business. For the purchase of a pied-à-terre, this is the ideal place. It will be necessary to set aside a budget within a budget range of $ 200,000 to $ 300,000. Investments there are highly profitable, with profit rates above 7%.
Real estate in the world: the Middle East
Dubai is a land of immigration for high-income households, a tax haven and offers great investment opportunities. The average price per square meter in the city in Dubai is € 3,100. It can go down to 1,600 € and go up to 4,900 € for high-end goods. The developers guarantee a profitability of the rental investment at 8%
Hong Kong is the most sought after city by wealthy people in the world. The average price per square meter reaches 33,000 euros.
Tokyo : 30 million inhabitants, 15,000 inhabitants per square kilometer in the districts of the center of the Japanese capital It is the largest megalopolis in the world in terms of population and the 2nd megalopolis in terms of economic power. Its economic size is equivalent to or greater than several European countries. Space is scarce and therefore expensive: the square meter can reach 17,600 euros.
Seoul ranks sixth for real estate in Asia. National investors are very active there. South Korea fought the Covid-19 pandemic without severe containment, and 2020 GDP fell less than 2%. The average real estate price in Seoul is between € 14,200 and € 25,000
The match Paris – London
Paris and London are the largest European markets and attract by far the most international investment.
Paris: total investment volumes exceed those of London for the second year in a row. The residential market in Paris suffered from the absence of foreign investors and the departure of residents and students after the health crisis. The market is recovering with an average per m2 of 10,300 euros.
London: the British market is experiencing a historic peak in its real estate market in 2021. The price per average square meter is € 13,900. The price range goes from € 9,100 up to € 20,600 depending on the neighborhood.
Stockholm : Sweden is also in the spiral of prices and does not know the crisis: the average square meter in the city amounts to 10,370 euros per square meter.
Amsterdam : the city where life is good. Distances are short and public transport is well organized. It takes between 6,000 and 10,000 € per square meter to buy an apartment in the city.
Berlin : the German capital is not excessively expensive. this obviously varies depending on the neighborhood, the type of property and the quality of the property. The price per m2 in Berlin varies between 2,500 euros and 8,000 euros, or even more for some luxury real estate.
Munich : the safe haven for real estate in Germany. In 2021, to buy a square meter in town, the average is € 10,470. This price varies from € 7,200 up to € 15,000.
Lisbon : the real estate market is very heterogeneous with prices between 3,500 and 10,000 euros per m². Some French people now prefer to settle on the outskirts of the city rather than in its historic center.
Athens : Since 2018, the real estate market has benefited from the Greek economic recovery. With an increase of 20%, the price per square meter has still not recovered to its pre-crisis value. Real estate investing is therefore still very attractive. The average price per square meter in October 2021 is in a range of 2,600 to 2,980 €, with an annual change of + 5.4%
Rome : the Italian capital is not among the most expensive in Europe, with an average price per square meter in October 2021 of € 6,400 to € 7,400, an annual increase of + 2%. But some luxury residences can sell for up to 20,000 euros per square meter
Barcelona : the Spanish regional capital is the most expensive in Spain with an average price per square meter in October 2021 of € 4,500, up 3.6%.
After the global health crisis, real estate remains a safe bet in global savings. Low interest rates are obviously a key factor in rising prices. Values tend to become uniform in the world’s major metropolises, around an average of € 11,000 per square meter. There are still great opportunities for returns for investors.