The report The Wealth Report 2024 on the world’s luxury real estate market, prepared annually by the Knight Frank consulting firm, reveals which homes can be buy with a million dollars in the most expensive real estate areas on the planet.
The difference in prices is abysmal depending on the location, and as for the analysis that the report makes of Ibiza, it is elaborated in function to the purchase of luxury second homes.
One million by 50 meters
With a million dollars in hand in Ibiza you can buy a high standing home of, maximum, 50 square meters. The same amount of money will buy 101 square meters in Marbella, 110 in Barcelona and 143 in Barbados.
Certainly, Ibiza is not the most expensive city in the world in these parametersbut it is the fourth. At the top of the ranking is Aspen (Colorado, United States), where with one million dollars you can only buy 20 square meters of a luxury second home.
The PIRI 100 Index (International Luxury Housing Index, Prime International Residential Index) of Knight Frank shows that eight out of ten markets analyzed have registered positive annual price growth. The biggest increases were seen in Manila (26.3%), Dubai (15.9%), the Bahamas (15%) and the Portuguese Algarve (12.3%). The island of Ibiza is also among the main increases, with 12%, equaling Athens and being the sixth destination in the world with the highest increase in luxury housing prices.
Other Spanish destinations also stand out in this top 100, such as Marbella (7.2%), Mallorca (7%) or Madrid (6.4%)all of them in the top 20 with the highest increases in prime housing prices.
“As expected, since last year, sun destinations continued to outperformwith an average increase of 4.7%, followed closely by ski resorts (3.3%), while cities remained at 2.7%,” the study highlights.
Sales, like the rest of the residential market have also suffered declines, according to the report. For example, in London, New York, Dubai, Singapore, Hong Kong and Sydney, luxury sales fell by an average of 37% year-on-year.
Square footage you can buy with a million dollars / Knight Frank
The type of buyer
About the buyer profilethe buyer is an international buyer in which the British stand out followed by the Germans, French and Americans. One of the direct effects of the Ukrainian war has been the retraction of the Russian investor profile, which has declined, as is the case with Chinese investors. This is an executive profile over 40 years old with a family. These buyers have high purchasing power and are looking for prime homes with exclusive and sophisticated features. In short, clients with high purchasing power, demanding and who value location, privacy and services. This type of buyer is the main buyer in Ibiza, but also in cities such as Madrid, Malaga or Barcelona.
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