Owning your own house is one of the greatest achievements you can ever attain in this life. But it’s even more fulfilling to own one of the most expensive houses in the world. It brings a sense of contentment and victory. If you would like to know which houses are considered the most expensive and where they can be found, this article offers you a list of the five most expensive houses in the world.
Where Are the Most Expensive Properties in the World?
Whether you are just a homeowner looking to buy a nice home for your family or you are a real estate investor looking to invest in the most profitable property, it is important to familiarize yourself with the current property market in the world.
For instance, you need to be aware of the locations where you can find the most expensive houses in the world. As expected, some property markets have proved to be unshakable, not even by global pandemics or serious political unrests.
These markets also tend to have some of the most expensive properties. Below are some of the regions with the world’s most expensive properties.
1. Monaco, Europe
A recent study by Savills revealed that Monaco tops the list of regions with the most expensive properties in the world. For a long time, Monaco has been regarded as the playground for the global elite. One of the reasons why Monaco’s property market so expensive is its size.
Spreading across a minuscule 0.8 square miles, Monaco is smaller than New York’s Central Park. In fact, Monaco comes second behind the Vatican in terms of being the world’s smallest country. This puts its prime property in very high demand.
Another contributing factor to the high cost of property in Monaco is the ultra-exclusive lifestyle that comes with the property in this small state. The small state is packed with fine-dining hotels, restaurants, designer boutiques, and luxury yachting clubs.
With all this glamour, it’s safe to say that Monaco was specifically designed for wealthy individuals. Furthermore, the state boasts perennial sunshine, wealth-friendly levies, and a primary location on the French Riviera.
2. Hong Kong, Asia
It is not a surprise that Hong Kong comes second in the list of the most expensive property markets in the world. With an average prime capital value of €3,682.80 ($4,392.81) per square foot, this city attracts some of the wealthiest individuals who are looking to make huge property investments. One of the reasons why Hong Kong has some of the most expensive properties in the world is its population density.
Currently, at least 7.5 million people live in Hong Kong, which is less than 430 square miles. The city’s attempts to remain green also make its limited properties very expensive. The high cost of properties in this Asian city can also be attributed to the fact that the city is a leading global finance hub.
3. New York, USA
Recent studies have shown that despite the ravaging effects of the Covid-19 pandemic, the cost of property in New York has remained fairly high. One of the factors that have contributed to the high cost of property in this city is the limited space. Almost every bit of space in New York is accounted for.
This means that there is no ground on which to build new property in New York. So, the only way to build in this city is up. This has seen the demand for air space in this big apple go up significantly over the last few years. Apart from the limited space, another reason why properties are so expensive in New York is the city’s sheer curb appeal.
New York City is America’s business hub, with designer boutiques, art galleries, and tech hubs. That’s why it is commonly referred to as the city that never sleeps.
Currently, the average cost of property in New York per square foot is $2,465.57 (€2,064.60).
4. Tokyo, Japan
Apart from its bright lights, top tourist spots, and thriving financial districts, Tokyo is also known for its expensive property market. Currently, the average cost of property in Tokyo is $2,265.05 (€1,897.20) per square foot. Some of the most expensive residential neighborhoods in Tokyo include Azabu, Toranomon, and Omotesando.
5. Geneva, Switzerland
Geneva is the lakeside city of Switzerland. It boats immediate closeness to the famous Alps and the Jura mountains that are home to first-class skiing resorts. These mountains also serve as global diplomacy and financial hub. This makes the city’s property market highly lucrative. At the moment, the average asking price of most properties in Geneva is $2,123.16 (€1,776.30) per square foot.
Another reason why properties in Geneva are so expensive is that the Swiss government has not designated the city as a holiday zone, meaning that foreigners cannot buy property in Geneva until they relocate and obtain the right documents. This has made properties in Geneva available only for the select few.
6. London, UK
Despite the effects of Covid-19 threatened to undermine London’s curb appeal because many companies allowed their employees to work from home, the city’s property market remains strong. Currently, the average property cost in London per square foot is $1,891.75 (€1,581). One of the contributing factors to London’s lucrative property market is its stable job market, wealth of culture, expansive green space, and the overall curb appeal of the city.
What Makes a House Expensive?
Everybody wants to own a house for their business or housing needs. While building your own house is a viable option, buying a ready house helps you to save time and avoid the hassle of building a house from scratch. However, the cost of houses continues to go up every day, making it difficult for low-income earners to afford a decent house.
For those who have the financial muscle, they want to buy the most expensive houses that stand out from the rest in the locality. There is a great sense of achievement and success to be the one who owns the most expensive house in your neighborhood. But what makes a house the most expensive? Here are some of the important factors that influence the cost of a house.
1. Neighborhood Comparative Market Analysis
Before a property owner lists their property, they have to determine the value of their home by analyzing the current sales prices of other homes in the neighborhood that are similar to theirs. This comparison can be in the form of a home appraisal, comparative market analysis, or an open-door evaluation. The results of this comparison will determine the cost of the house.
2. Location of Your House
When an appraiser is determining the value of a house, they consider several important factors, including the quality of essential amenities like schools, hospitals, restaurants, among others, available employment opportunities, and nearness to shopping and recreational centers. They will also consider its proximity to the highways, public transport, and utility lines.
This explains why some neighborhoods command higher property prices than others. In fact, the location of the house is more important than even its size and condition when it comes to determining its value.
3. Size and Useful Space
The size of a house and the available usable space are very important when it comes to determining its market value. It is also important to mention that a home’s value is normally estimated at price per square foot. For instance, if a house sitting on a 2,000 square feet area is selling at $200,000, it means that the price per square foot is $100.
You also need to understand that basements, attics, and garages are not counted as usable space. So, if the 2,000-square-feet house has a 600-square-feet garage, only 1400-square-feet will be counted as usable space. Most buyers and appraisers are only interested in usable space like bedrooms, living areas, kitchens, and bathrooms.
4. Age and Condition
Normally, newly built houses have a higher market value than old houses. This is mainly because the critical parts of the house, including the electrical system, plumbing system, roof, appliances, and other fittings are still in perfect condition and therefore won’t break down easily or require repairs any time soon.
That way, the buyer is guaranteed to save money in the long run. It is for this same reason that most buyers request a home inspection before they commit to any home sale contract.
5. Upgrades and Improvements
A property appraiser will consider any upgrades and improvements that have been done on the house recently to determine its market value. Therefore, a house with recent updates and improvements will cost higher than an old house with outdated fixtures.
However, it is important to note that the impact of an upgrade project varies depending on the current market and the value of your home. For example, home improvement projects like adding a swimming pool, wood flooring, kitchen remodeling, and adding a full bathroom help to improve the market value of a house.
Five Most Expensive Houses in the World
1. Buckingham Palace, London – £935 Million
Technically, the Buckingham Palace is a Crown property that features 775 rooms, 188 staff rooms, 52 royal and guest bedrooms, 92 offices, 78 bathrooms, and 19 staterooms. So, apart from being the world’s most expensive house, the Palace is also the most spacious house. The current market value of Buckingham Palace is about £935 million.
2. Antilia, Mumbai – $2 Billion
Estimated to be sitting on a 400,000-square-feet space, Antilia is owned by Mukesh Ambani, the richest man in India. This house is situated on Cumballa Hills in Mumbai, India – one of the world’s most expensive residential estates. Antilia was designed by renowned American architects Perkins and Will and constructed by an Australian construction company, Leighton Holdings.
This building features 27 floors, full of extremely high ceilings. Each floor on this building is equal to an average two-story building’s floor. Additionally, this building is specially designed to withstand an 8-scale earthquake of the Richter magnitude. This Ambani family house is currently estimated to cost about two billion US dollars (12,000 crore rupees).
3. Villa Leopolda, Cote D’Azure – $750 Million
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This villa has changed hands severally, with some of its previous owners being distinguished individuals. Some of its previous owners include Gianni and Marella Agnelli, Izaak and Dorothy J. Killam, and Lily Safra. The villa features a vast greenhouse, a pool house and swimming pool, an outdoor kitchen, a guest house, and a helipad.
This house became even more popular when it featured in the Alfred Hitchcock classic ‘To Catch a Thief.’ Forbes says that this villa is currently worth $750 million.
4. Four Fairfield Pond, New York – $248 Million
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This majestic 63-acre home is owned by Ira Renner, who also owns the Renco Group company. The home features 29 bedrooms, 39 bathrooms, a basketball court, tennis courts, squash courts, three swimming pools, a bowling alley, and a built-in power plant. This house is estimated to be worth $248 million.
5. Seven The Pinnacle, Big Sky – $155 Million
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This building houses the massive Yellowstone Club, which is the most famous private residential club, ski resort, and golf resort in Montana. The building is the property of Edra and Tim Blixseth. It also features heated floors, a gym, a wine cellar, its own ski lift, and several swimming pools. Currently, this building is estimated to be worth $155 million.