The global luxury real estate market continues to show resilience and growth in 2025, despite economic uncertainty, geopolitical instability, and tighter monetary policies in many regions. According to the latest report from Knight Frank, Monaco and New York City have once again claimed the top positions as the most expensive cities for high-end residential property, outpacing rivals such as London, Hong Kong, and Singapore.
Monaco: The Undisputed Leader
The tiny principality of Monaco, occupying just two square kilometers on the French Riviera, remains the most expensive luxury property market in the world. In 2025, the average price per square meter in Monaco reached €50,600, setting a new all-time high. This means that €1 million buys approximately only 20 square meters of luxury living space.
Key factors behind this unmatched price level include:
- Extremely limited land supply;
- No income tax;
- Political and economic stability;
- High levels of personal safety;
- Global prestige and exclusivity.
Monaco attracts a steady stream of ultra-high-net-worth individuals from across Europe, North America, the Middle East, and Asia. Properties with sea views, terraces, private pools, and enhanced security features are in the highest demand.
New York Reclaims Prominence
After a temporary dip during the pandemic, New York has firmly regained its place among the top luxury real estate markets. In 2025, NYC secured the second position, surpassing both Hong Kong and London. The average price for luxury residential property in Manhattan rose to €28,500 per square meter, with trophy assets in areas like Tribeca, Central Park South, and Billionaires’ Row exceeding €60,000/m².
Drivers behind this comeback include:
- Renewed international demand for politically stable investment environments;
- Tight supply due to construction slowdowns;
- Dollar strength attracting foreign capital;
- Return of affluent buyers from Latin America and Asia.
Active buyer segments include investors from Brazil, Mexico, China, and South Korea, with preferences leaning toward residences featuring panoramic views, state-of-the-art systems, and premium services.
Other Major Global Players
London
Despite the lingering effects of Brexit and inflationary pressures, London remains a strong contender, ranking third in 2025. Prime Central London prices now average €25,100/m², with exclusive districts like Mayfair and Knightsbridge exceeding €35,000/m².
Buyers predominantly hail from the Middle East, India, and Eastern Europe. A weaker British pound and recent tax reliefs for foreign buyers have helped stabilize demand.
Hong Kong
Despite ongoing political changes and increasing control from mainland China, Hong Kong’s luxury market remains active. Average prices hover around €22,700/m², although some international buyers are shifting focus to more predictable markets like Singapore and Tokyo.
Singapore
Singapore continues to appeal to global investors thanks to its safety, cleanliness, and robust legal environment. With average luxury prices at €21,300/m², the city-state saw a 4% annual price increase in 2025, even with higher taxes for foreign buyers.
Key Trends in 2025
Secondary Market Activity on the Rise
With new development facing delays and limited availability, the resale market has gained momentum. Over 55% of luxury transactions in H1 2025 involved second-hand properties, indicating robust demand for existing inventory.
ESG Criteria Take Center Stage
Luxury buyers are increasingly concerned with sustainability. Preferred features include:
- Energy efficiency systems;
- Rainwater collection and recycling;
- Renewable energy integration;
- Environmental certifications (e.g., LEED, BREEAM).
Homes that meet these standards enjoy a 12–15% price premium over comparable non-certified properties.
High-End Rentals on the Rise
As purchase prices rise, luxury rentals have also become a more attractive option in major cities. In New York, monthly rent for ultra-luxury apartments can reach €25,000, while in Monaco, short-term leases during events like the Formula 1 Grand Prix can command €40,000 or more.
Emerging Hotspots
As core markets become saturated, attention is shifting toward secondary destinations with high investment potential:
- Dubai: A favorite for digital nomads and wealthy European families, with luxury prices around €10,500/m²;
- Lisbon: Popular for Golden Visa seekers and tech entrepreneurs, with average luxury prices at €7,200/m²;
- Geneva and Zurich: Political neutrality and financial stability continue to attract discreet investors from across the globe.
Price Overview and Forecasts
| City | Avg. Price (€/m²) | Forecast Growth (2025–2026) |
|---|---|---|
| Monaco | 50,600 | +3% |
| New York | 28,500 | +5–7% |
| London | 25,100 | +2–4% |
| Hong Kong | 22,700 | +1–2% |
| Singapore | 21,300 | +4% |
| Dubai | 10,500 | +6–8% |
| Lisbon | 7,200 | +9–10% |
Conclusion
The year 2025 reaffirms luxury real estate as one of the most resilient and prestigious asset classes for global investors. Monaco continues to set the global benchmark for price per square meter, while New York has made a strong comeback, reaffirming its status as a magnet for global capital.
In a world marked by inflation, market volatility, and political tensions, high-end real estate offers a powerful combination of asset preservation and appreciation. Demand remains geographically diverse and motivation-driven — ranging from personal use to income-producing investment strategies such as long-term rentals and wealth preservation.
Global competition for top-tier, well-located, ESG-compliant properties remains fierce. As inventory tightens and construction lags, these rare and desirable assets are expected to continue leading the charge in the global luxury market through 2026 and beyond.
