Knight Frank Report: What $1M Buys in Global Luxury Real Estate
Knight Frank's Wealth Report details escalating global trends in luxury real estate, noting that prime property prices rose by 3.2% last year. The Middle East, particularly Dubai, led growth with a 25% price increase in 2025, while Tokyo saw a 58% surge. The report compares purchasing power, showing that $1 million buys significantly less in Monaco (16m²) than in New York (33.9m²). Increased wealth mobility, driven by tax and regulatory pressures, is causing established hubs like London to shift toward temporary residency models, favoring jurisdictions with attractive tax environments.
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A new Knight Frank Wealth Report reveals significant global trends in luxury real estate, showing rising prices and shifting wealth patterns across major international markets.
Global Luxury Real Estate Price Trends
The report indicates that luxury property prices are continuing to escalate globally, driven by increasing wealth and greater mobility among affluent individuals. Last year, prime real estate prices across 100 tracked markets rose by 3.2%, slightly outpacing the 2.9% growth seen in mainstream global housing prices.
Key Market Performance Highlights
Middle East Leadership: The Middle East spearheaded global luxury growth, with Dubai experiencing a 25% price increase in 2025 and nearly a 200% rise over the last five years.
Tokyo Surge: Tokyo was a notable standout in 2025, reporting a significant price surge of 58%.
Other Growth Areas: Manila, Seoul, and Prague also demonstrated strong price appreciation.
Purchasing Power Comparison: $1 Million Today
The report provides a snapshot of what a $1 million investment yields in various global cities, highlighting disparities in affordability and market value.
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Monaco: In the world's most expensive luxury market by the meter, $1 million purchases only 16 square meters (approximately 172 square feet), a decrease from 17 square meters in 2020.
Hong Kong: Here, $1 million acquires 22.5 square meters (about 242 square feet).
New York: Compared to other major hubs, New York appears more accessible, with $1 million buying 33.9 square meters (365 square feet).
London, Singapore, and Geneva: These markets are noted for being more expensive relative to the purchasing power of $1 million.
Future Hotspots and Wealth Mobility
Knight Frank identifies several emerging locations poised for future growth in the luxury sector. The report names Mumbai, Brisbane, Miami, and Hong Kong as potential future hotspots.
According to the research, the ultra-wealthy are increasingly mobile, leading them to purchase properties across diverse global locations.
Impact of Regulation and Tax Policy
The report attributes wealth mobility to rising tax burdens and increasing regulatory pressures. This trend is causing established hubs to adapt their function:
Shifting Models: Cities like London are reportedly shifting toward a "dip-in, dip-out" model—serving as temporary destinations for business and culture rather than permanent residences.
Attracting Capital: Liam Bailey, global head of research at Knight Frank, advises that any market aiming to attract Ultra-High-Net-Worth (UHNW) capital must position itself favorably on the tax curve. Capital is moving away from high-friction environments toward jurisdictions that actively court wealth, citing attractive tax environments in places like Miami, Milan, and Dubai.
