REAL ESTATE: DISCOVER THE CLASSIFICATION OF THE WORLD'S LARGEST CAPITALS
19 July 2017
The Global Property Guide's ranking of the most expensive capitals in the world shows some surprises. Paris is "well placed", but France is far from the record!
In the top 20 of the most expensive capitals in the world, established by Global Property Guide and analyzed by Xerfi, leader of sectoral economic studies, there are many city-states. Monaco trustees first place, Hong Kong is third, Singapore ninth, Luxembourg sixteenth and Dubai eighteenth. This overrepresentation of independent (or very autonomous) cities in this ranking is explained by the very high concentration of wealth in these urban areas, exceptional taxation or banking secrecy and an oversized financial center.
To have a more accurate view of reality, it is necessary to eliminate these city-states from the rankings. With this new method of calculation, which evicts five cities, London is very much in the lead. Property prices in the British capital are more than twice as high as those of Tokyo, Moscow or Geneva, respectively second, third and fourth place. Paris arrives sixth, just behind Vienna and before Stockholm. To explain this ranking, look at per capita income. In this top 15 of the most expensive capitals, nine countries are indeed among the richest.
Alexandre Mirlicourtois, director of the business and forecasting of Xerfi, highlights the absence of six of the richest countries in the world in this ranking, led by the United States and Canada. To understand this phenomenon, the expert explains the complete dimension of the most expensive capitals. Paris and London are indeed economic and political capitals which possess a strong tourist attraction and concentrate large universities. This is not the case of Washington (distanced by New York) and Ottawa, whose property prices are lower than Toronto.