Here are the 112 most expensive property markets and the 91 cities and regions with the highest gross rental yields worldwide for 2009 from Global Property Guide.
No surprise—Monte Carlo is number one in the Global Property Guide's list of World's Most Expensive Residential Real Estate Markets 2009, more than twice as expensive, at USD 45,000 per square metre, as the runner up.
Battling for the number 2 position are prime central Moscow and London. Prime central Moscow's USD 20,853 per square metre price tag slightly outpaces core Prime London's USD 20,756 per square metre, though it is fairer to say the two cities are neck-and-neck.
London residential property prices have fallen for much of 2008, while Moscow property price declines only started in the last quarter, allowing Moscow to catch up with London. Both countries have experienced strong currency declines.
Tokyo and Hong Kong come in fourth and fifth, respectively.
New York, the only U.S. city included in the survey, is 6th, with an average price of USD 15,000 per sq. m.
Most Expensive Property Markets
(based on 120 m² apartment in city-centre ) |
| Rank |
Country |
City/Region |
Avg. Price
(USD/m²) |
| 1 |
Monaco |
Monte Carlo |
47,578 |
| 2 |
Russia |
Moscow |
20,853 |
| 3 |
UK |
London |
20,756 |
| 4 |
Japan |
Tokyo |
17,998 |
| 5 |
Hong Kong |
Hong Kong |
16,125 |
| 6 |
USA |
New York |
14,898 |
| 7 |
France |
Paris |
12,122 |
| 8 |
Singapore |
Singapore |
9,701 |
| 9 |
Italy |
Rome |
9,166 |
| 10 |
India |
Mumbai |
9,163 |
| Source: Global Property Guide |
Completing the top ten most expensive real estate markets are two European cities (Paris at 7th and Rome at 9th) and two other Asian cities (Singapore at 8th and Mumbai at 10th). Average prices range from USD 9,000 per sq. m. to USD 12,000 per sq. m.
The figures are based on the average price of a 120 sq. m., good-condition high-end used apartment in the city centres of more than 110 cities around the world, typically the economic centres where most foreigners are likely to buy. Data were collected during 2008. The U.S. dollar exchange rate used is that of January 27, 2009.
Bargain hunters' dream
For global bargain hunters, there are several places where property prices are relatively cheap—for example, parts of the Middle East, Latin America and Asia.
Cairo, Egypt is one of the cheapest cities in the world, with prime city centre prices at around USD 600 per sq. m. Another Middle Eastern capital in the bottom 10 is Amman, Jordan, with average city centre prices at USD 1,150 per sq. m.
Least Expensive Property Markets
(based on 120 m² apartment in city-centre ) |
| Rank |
Country |
City/Region |
Avg. Price
(USD/m²) |
| 112 |
Egypt |
Cairo |
574 |
| 111 |
India |
Bangalore |
657 |
| 110 |
Chile |
Concepción |
669 |
| 109 |
Ecuador |
Quito |
820 |
| 108 |
China |
Chengdu |
999 |
| 107 |
Nicaragua |
Managua |
1,080 |
| 106 |
Indonesia |
Jakarta |
1,102 |
| 105 |
Jordan |
Amman |
1,150 |
| 104 |
Peru |
Lima |
1,154 |
| 103 |
Chile |
Santiago |
1,221 |
| Source: Global Property Guide) |
Three Asian cities are included in the 10 cheapest, all located in rapidly growing and heavily populated countries, Bangalore in India, Chengdu in China and Jakarta in Indonesia.
Chengdu, damaged during the magnitude 8.0 earthquake in 2008, remains a vital economic, transportation and communication hub in the heartland of China.
Indonesia was the last country to recover from the 1997 Asian Financial Crisis. However, the economic reforms implemented by the Yudhoyono administration are setting the stage for steady economic growth.
Five Latin American cities complete the list of 10 cheapest cities for property buyers: Concepcion and Santiago in Chile, Quito in Ecuador, Managua in Ecuador and Lima in Peru.
The same countries also tend to earn good rental yields.
Overvalued
| Highest Gross Rental Yields |
| Rank |
Country |
City/Region |
Annual Yield |
| 1 |
Moldova |
Chisinau |
14.17% |
| 2 |
Egypt |
Cairo |
12.00% |
| 3 |
Indonesia |
Jakarta |
11.27% |
| 4 |
Philippines |
Manila |
10.99% |
| 5 |
Macedonia |
Skopje |
10.11% |
| 6 |
Peru |
Lima |
10.09% |
| 7 |
Panama |
Panama City |
9.98% |
| 8 |
Jordan |
Amman |
9.73% |
| 9 |
Malaysia |
Kuala Lumpur |
9.22% |
| 10 |
Colombia |
Bogota |
9.19% |
| 11 |
Nicaragua |
Managua |
9.12% |
| 12 |
Chile |
Concepción |
9.04% |
| 13 |
Netherlands |
The Hague |
8.97% |
| 14 |
Chile |
Santiago |
8.87% |
| 15 |
Argentina |
Buenos Aires |
8.85% |
| 16 |
Jamaica |
Kingston |
8.80% |
| 17 |
Ecuador |
Quito |
8.77% |
| 18 |
Bahamas |
Nassau |
8.37% |
| 19 |
Russia |
St. Petersburg |
8.15% |
| 20 |
Trinidad & Tobago |
Trinidad |
8.14% |
| Source: Global Property Guide |
Rental yields are generally below 5 percent in most European cities, suggesting that property is still overvalued.
Rental yields are generally below four percent in the following cities: Munich, Barcelona, Vilnius, Helsinki, Madrid, Rome, and Nicosia. Rental yields in Europe are lowest on Andorra at 2.2 percent and Athens at 2.7 percent.
Rental yields are between 4 percent and 5 percent in major cities such as Brussels, Tokyo, Berlin, Moscow, Copenhagen, Warsaw, New York, Shanghai, Paris, London and Geneva.
Returns from rental investments are also relatively low in key Asian cities such as Singapore and Hong Kong and in almost all Indian cities—Bangalore, New Delhi, and Mumbai.
Only six cities have rental yields of more than 10 percent, led by Chisinau with an average gross rental return of 14 percent. The Moldovan capital is followed by Cairo, Jakarta, Manila, Skopje and Lima.
High returns can also be expected in Latin American cities. Yields range from 8 percent to 10 percent in: Panama City, Panama; Bogota, Colombia; Managua, Nicaragua; Santiago, Chile; Buenos Aires, Argentina; and Quito, Ecuador.
Rental yields in Kuala Lumpur, Malaysia and Amman, Jordan are also typically above 9 percent.
House price movements
The recent house price boom and bust defeats the traditional notion that real estate prices are based primarily on local conditions.
The relatively low cost and ease of moving capital around the world has made it easier for people to invest in real estate markets in several countries. This is complemented by the relatively lower cost of international air transport. Several countries have also removed foreign ownership restrictions, a move encouraged by the Organization for Economic Cooperation and Development (OECD) and the European Union.
The result of these changes has been a remarkable increase in cross country real estate investments—helping make the boom, and the bust, truly global.
This article has been reposted from Global Property Guide. You can view the article on Global Property Guide's international residential real estate website.
Most Expensive Property Markets
(based on 120 m² apartment in city-centre ) |
| Rank |
Country |
City/Region |
Avg. Price
(USD/m²) |
| 1 |
Monaco |
Monte Carlo |
47,578 |
| 2 |
Russia |
Moscow |
20,853 |
| 3 |
UK |
London |
20,756 |
| 4 |
Japan |
Tokyo |
17,998 |
| 5 |
Hong Kong |
Hong Kong |
16,125 |
| 6 |
USA |
New York |
14,898 |
| 7 |
France |
Paris |
12,122 |
| 8 |
Singapore |
Singapore |
9,701 |
| 9 |
Italy |
Rome |
9,166 |
| 10 |
India |
Mumbai |
9,163 |
| 11 |
Ireland |
Dublin |
9,069 |
| 12 |
Finland |
Helsinki |
8,404 |
| 13 |
Bermuda |
Bermuda |
7,861 |
| 14 |
Greece |
Athens |
7,858 |
| 15 |
UAE |
Dubai |
7,151 |
| 16 |
Spain |
Barcelona |
6,523 |
| 17 |
Montenegro |
Montenegrin Littoral |
6,184 |
| 18 |
Switzerland |
Geneva |
6,178 |
| 19 |
Luxembourg |
Luxembourg |
6,165 |
| 20 |
British Virgin Islands |
British Virgin Islands |
5,843 |
| 21 |
Barbados |
St. James |
5,767 |
| 22 |
Spain |
Madrid |
5,672 |
| 23 |
Russia |
St. Petersburg |
5,527 |
| 24 |
Andorra |
Andorra |
5,379 |
| 25 |
Germany |
Munich |
5,255 |
| 26 |
Romania |
Bucharest |
5,184 |
| 27 |
Slovakia |
Bratislava |
5,088 |
| 28 |
Australia |
Sydney |
4,994 |
| 29 |
Turks & Caicos |
Providenciales |
4,963 |
| 30 |
Netherlands Antilles |
Sint Maarten |
4,889 |
| 31 |
Netherlands |
Amsterdam |
4,650 |
| 32 |
Italy |
Milan |
4,624 |
| 33 |
Israel |
Tel Aviv |
4,582 |
| 34 |
Czech Republic |
Prague |
4,559 |
| 35 |
Saint Kitts & Nevis |
Nevis |
4,463 |
| 36 |
Germany |
Frankfurt |
4,407 |
| 37 |
US Virgin Islands |
Saint Thomas |
4,324 |
| 38 |
Poland |
Warsaw |
4,301 |
| 39 |
Puerto Rico |
San Juan |
4,290 |
| 40 |
Antigua & Barbuda |
Antigua |
4,275 |
| 41 |
Bahamas |
Nassau |
4,078 |
| 42 |
Canada |
Toronto |
4,007 |
| 43 |
Taiwan |
Taipei |
3,968 |
| 44 |
Denmark |
Copenhagen |
3,815 |
| 45 |
Slovenia |
Ljubljana |
3,802 |
| 46 |
Latvia |
Riga |
3,716 |
| 47 |
Estonia |
Tallinn |
3,691 |
| 48 |
Malta |
Malta |
3,656 |
| 49 |
Martinique |
Martinique |
3,622 |
| 50 |
Poland |
Krakow |
3,557 |
| 51 |
Switzerland |
Zurich |
3,463 |
| 52 |
Cayman Islands |
Grand Cayman |
3,352 |
| 53 |
Saint Lucia |
Saint Lucia |
3,279 |
| 54 |
Belgium |
Brussels |
3,267 |
| 55 |
Cyprus |
Limassol |
3,265 |
| 56 |
Mexico |
Baja California Sur |
3,227 |
| 57 |
Croatia |
Zagreb |
3,215 |
| 58 |
Canada |
Montreal |
3,211 |
| 59 |
India |
New Delhi |
3,171 |
| 60 |
Saint Kitts & Nevis |
Saint Kitts |
3,168 |
| 61 |
Trinidad & Tobago |
Trinidad |
3,091 |
| 62 |
Germany |
Berlin |
3,030 |
| 63 |
Greece |
Crete |
2,981 |
| 64 |
Portugal |
Algarve |
2,925 |
| 65 |
Netherlands |
The Hague |
2,922 |
| 66 |
China |
Shanghai |
2,918 |
| 67 |
Lithuania |
Vilnius |
2,907 |
| 68 |
Portugal |
Lisbon |
2,891 |
| 69 |
Bulgaria |
Sofia |
2,877 |
| 70 |
Hungary |
Budapest |
2,868 |
| 71 |
Cyprus |
Paphos |
2,792 |
| 72 |
US Virgin Islands |
Saint Croix |
2,689 |
| 73 |
Cambodia |
Phnom Penh |
2,503 |
| 74 |
Curacao and Bonaire |
Curacao and Bonaire |
2,459 |
| 75 |
Guadeloupe |
Guadeloupe |
2,446 |
| 76 |
Brazil |
Rio de Janeiro |
2,441 |
| 77 |
China |
Beijing |
2,362 |
| 78 |
South Africa |
Cape Town |
2,355 |
| 79 |
New Zealand |
Auckland |
2,347 |
| 80 |
Argentina |
Buenos Aires |
2,293 |
| 81 |
Cyprus |
Nicosia |
2,256 |
| 82 |
Thailand |
Bangkok |
2,238 |
| 83 |
Lebanon |
Beirut |
2,229 |
| 84 |
Belize |
Belize |
2,220 |
| 85 |
Cyprus |
Larnaca |
2,174 |
| 86 |
Morocco |
Marrakech |
2,043 |
| 87 |
Philippines |
Manila |
1,914 |
| 88 |
Dom. Rep. |
Puerto Plata |
1,872 |
| 89 |
Brazil |
Sao Paolo |
1,860 |
| 90 |
Uruguay |
Montevideo |
1,753 |
| 91 |
Vietnam |
Hanoi |
1,749 |
| 92 |
Panama |
Panama City |
1,740 |
| 93 |
Jamaica |
Kingston |
1,654 |
| 94 |
Costa Rica |
San Jose |
1,602 |
| 95 |
Chile |
Viña Del Mar |
1,586 |
| 96 |
China |
Guangzhou |
1,526 |
| 97 |
Aruba |
Aruba |
1,443 |
| 98 |
Colombia |
Bogota |
1,402 |
| 99 |
Malaysia |
Kuala Lumpur |
1,347 |
| 100 |
Moldova |
Chisinau |
1,316 |
| 101 |
Macedonia |
Skopje |
1,303 |
| 102 |
Turkey |
Istanbul |
1,291 |
| 103 |
Chile |
Santiago |
1,221 |
| 104 |
Peru |
Lima |
1,154 |
| 105 |
Jordan |
Amman |
1,150 |
| 106 |
Indonesia |
Jakarta |
1,102 |
| 107 |
Nicaragua |
Managua |
1,080 |
| 108 |
China |
Chengdu |
999 |
| 109 |
Ecuador |
Quito |
820 |
| 110 |
Chile |
Concepción |
669 |
| 111 |
India |
Bangalore |
657 |
| 112 |
Egypt |
Cairo |
574 |
| Source: Global Property Guide |
| Highest Gross Rental Yields |
| Rank |
Country |
City/Region |
Annual Yield |
| 1 |
Moldova |
Chisinau |
14.17% |
| 2 |
Egypt |
Cairo |
12.00% |
| 3 |
Indonesia |
Jakarta |
11.27% |
| 4 |
Philippines |
Manila |
10.99% |
| 5 |
Macedonia |
Skopje |
10.11% |
| 6 |
Peru |
Lima |
10.09% |
| 7 |
Panama |
Panama City |
9.98% |
| 8 |
Jordan |
Amman |
9.73% |
| 9 |
Malaysia |
Kuala Lumpur |
9.22% |
| 10 |
Colombia |
Bogota |
9.19% |
| 11 |
Nicaragua |
Managua |
9.12% |
| 12 |
Chile |
Concepción |
9.04% |
| 13 |
Netherlands |
The Hague |
8.97% |
| 14 |
Chile |
Santiago |
8.87% |
| 15 |
Argentina |
Buenos Aires |
8.85% |
| 16 |
Jamaica |
Kingston |
8.80% |
| 17 |
Ecuador |
Quito |
8.77% |
| 18 |
Bahamas |
Nassau |
8.37% |
| 19 |
Russia |
St. Petersburg |
8.15% |
| 20 |
Trinidad & Tobago |
Trinidad |
8.14% |
| 21 |
Thailand |
Bangkok |
7.97% |
| 22 |
Uruguay |
Montevideo |
7.56% |
| 23 |
New Zealand |
Auckland |
7.46% |
| 24 |
Guadeloupe |
Guadeloupe |
7.31% |
| 25 |
Vietnam |
Hanoi |
7.13% |
| 26 |
Costa Rica |
San Jose |
7.06% |
| 27 |
Hungary |
Budapest |
6.84% |
| 28 |
Canada |
Montreal |
6.77% |
| 29 |
Netherlands |
Amsterdam |
6.63% |
| 30 |
Morocco |
Marrakech |
6.56% |
| 31 |
Brazil |
Sao Paolo |
6.56% |
| 32 |
Brazil |
Rio de Janeiro |
6.48% |
| 33 |
Canada |
Toronto |
6.48% |
| 34 |
Turkey |
Istanbul |
6.47% |
| 35 |
South Africa |
Cape Town |
6.32% |
| 36 |
Australia |
Sydney |
5.96% |
| 37 |
Romania |
Bucharest |
5.54% |
| 38 |
UAE |
Dubai |
5.50% |
| 39 |
Slovenia |
Ljubljana |
5.49% |
| 40 |
Puerto Rico |
San Juan |
5.32% |
| 41 |
China |
Guangzhou |
5.21% |
| 42 |
China |
Beijing |
5.14% |
| 43 |
Lebanon |
Beirut |
5.13% |
| 44 |
Israel |
Tel Aviv |
5.13% |
| 45 |
Croatia |
Zagreb |
5.07% |
| 46 |
Bermuda |
Bermuda |
5.05% |
| 47 |
Czech Republic |
Prague |
5.02% |
| 48 |
Switzerland |
Zurich |
5.00% |
| 49 |
India |
Bangalore |
4.91% |
| 50 |
Belgium |
Brussels |
4.90% |
| 51 |
Cambodia |
Phnom Penh |
4.88% |
| 52 |
Japan |
Tokyo |
4.86% |
| 53 |
Germany |
Berlin |
4.80% |
| 54 |
Italy |
Milan |
4.72% |
| 55 |
Bulgaria |
Sofia |
4.62% |
| 56 |
Russia |
Moscow |
4.61% |
| 57 |
Denmark |
Copenhagen |
4.61% |
| 58 |
Germany |
Frankfurt |
4.60% |
| 59 |
Poland |
Warsaw |
4.60% |
| 60 |
Latvia |
Riga |
4.40% |
| 61 |
USA |
New York |
4.37% |
| 62 |
Barbados |
St. James |
4.37% |
| 63 |
China |
Shanghai |
4.36% |
| 64 |
Estonia |
Tallinn |
4.36% |
| 65 |
Slovakia |
Bratislava |
4.28% |
| 66 |
Luxembourg |
Luxembourg |
4.28% |
| 67 |
China |
Chengdu |
4.28% |
| 68 |
France |
Paris |
4.26% |
| 69 |
UK |
London |
4.12% |
| 70 |
Poland |
Krakow |
4.10% |
| 71 |
Switzerland |
Geneva |
4.09% |
| 72 |
India |
New Delhi |
4.05% |
| 73 |
India |
Mumbai |
4.02% |
| 74 |
Germany |
Munich |
3.97% |
| 75 |
Singapore |
Singapore |
3.97% |
| 76 |
Cyprus |
Nicosia |
3.76% |
| 77 |
Spain |
Barcelona |
3.75% |
| 78 |
Chile |
Viña Del Mar |
3.74% |
| 79 |
Hong Kong |
Hong Kong |
3.73% |
| 80 |
Lithuania |
Vilnius |
3.70% |
| 81 |
Finland |
Helsinki |
3.69% |
| 82 |
Spain |
Madrid |
3.67% |
| 83 |
Cyprus |
Larnaca |
3.64% |
| 84 |
Italy |
Rome |
3.62% |
| 85 |
Greece |
Crete |
3.57% |
| 86 |
Cyprus |
Limassol |
3.45% |
| 87 |
Malta |
Malta Island |
2.85% |
| 88 |
Cyprus |
Paphos |
2.83% |
| 89 |
Greece |
Athens |
2.71% |
| 90 |
Taiwan |
Taipei |
2.38% |
| 91 |
Andorra |
Andorra |
2.19% |
| Source: Global Property Guide |
