Cross-Country Investments

Investing in property

around the world

When looking for lucrative investment opportunities, many people think of the most cutting-edge technologies and dynamic startups that become unicorn companies within a matter of months. However, these examples are few and far between, and often require a strong degree of luck and insider knowledge to get in early and enjoy their rise in value.

Meanwhile, traditional investment options such as property have gone from strength to strength, with impressive returns being seen in markets all around the world. Property has long been seen as a safe and reliable choice for investors and, while recessions such as the 2008 financial crisis caused markets to dip severely, prices generally bounced back to their pre-crash levels within a handful of years and continued to surpass them as time went on.

With this in mind, we wanted to investigate the countries where property is the most and least affordable for investors and buyers to get a foot on the property ladder. Looking at capital cities around the world, including a few exceptions such as Sydney and Ho Chi Minh City, we can reveal just how far your money will go when investing in real estate.

Property Price Calculator

To help people searching for properties to buy or invest in around the world, we’ve created a tool that allows them determine what they can afford in each location.

To use our Property Price Calculator, simply select a currency and input the amount you are willing to spend on a property. The calculator will then reveal the average size of city centre property you could afford in each location.

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The price of real estate in global cities

All property markets experience fluctuations in value, usually caused by changes in supply and demand or other more widespread economic factors. As with any commodity, investors are always looking for a lucrative dip in value which they can buy into and wait for prices to recover.

We’ve calculated the average price of a 2-bedroom apartment in capital cities around the world, presuming an average property size of 800 square feet, or 74.32 square metres. We’ll reveal the cities with the most valuable properties, as well as those where it's the most affordable to invest in bricks and mortar.

1. Hong Kong, Hong Kong

The city of Hong Kong is the most expensive location to own an apartment, with the average 2-bedroom property costing an eye-watering $2,123,400. However, the Hong Kong property market has been in decline for some time, with the Financial Times reporting at the beginning of 2023 that sales had dropped to their lowest level since the 2008 financial crisis.

Despite this considerable dip in sales activity, the reduction in prices in Hong Kong has been much less severe. Looking at the Hong Kong House Price Index, we can see that property values at the end of 2022 were roughly similar to those at the end of 2017, suggesting that much of the price growth since 2008 is here to stay.

$2,123,400

Average price of a 2-bedroom apartment

2. London, United Kingdom

London is the city with the second most expensive property, as the average price of a centrally-located 2-bedroom apartment is $1,951,900. As one of the world’s global financial capitals and a popular location for real estate investors, property in central London has a reputation for being some of the most expensive on the planet

Property prices in the UK as a whole have gradually increased since the dip following the 2008 financial crisis, with prices increasing more rapidly since the beginning of the Covid-19 pandemic. However, this growth appears to have slowed to a halt in late 2022, with prices in November falling slightly compared to the previous month.

$1,951,900

Average price of a 2-bedroom apartment

3. Washington D.C., United States

Washington D.C. has the third most expensive property in our study, with an average 2-bedroom apartment costing approximately $1,277,700. This high price tag reflects the inevitably high demand for property in the beating heart of one of the world’s major superpowers.

However, Washington D.C. is no exception to the recent downturn in property prices seen in many parts of the developed world. According to Zillow, prices in the city peaked in May 2022 and have since been on a downward trend.

$1,277,700

Average price of a 2-bedroom apartment

Rank	Rank	City	Country	Buying price (USD per sq. m.)	Average price of 2 bedroom apartment (nearest $100, USD)

1. Cairo, Egypt

Cairo is the city in our study with the most affordable property, with the average cost of a 2 bedroom apartment in the city centre coming to $61,800. Egypt has recently seen a booming property market which the head of Savills Egypt has described as an ‘investment magnet’ that he believes is here to stay.

As such, real estate in Cairo is both some of the most accessible for investors due to the very low relative costs, and is an example of a location in our study in which the property market is on the up.

$61,800

Average price of a 2-bedroom apartment

2. San Juan, Puerto Rico

San Juan, the capital of Puerto Rico, has the second most affordable property in our study with an average 2-bedroom apartment in the city centre costing $74,800. While this makes real estate in Puerto Rico some of the most accessible for investors, the trend of property prices in the city is somewhat less reassuring.

According to Trading Economics’ San Juan Property Price Index, the value of real estate in the city never fully recovered from the 2008 financial crash with prices continuing to fall into the late 2010s. Since then, prices have fluctuated considerably, though the trend was generally upward until the post-Covid era which has seen that growth begin to falter.

$74,800

Average price of a 2-bedroom apartment

3. Quito, Ecuador

The Ecuadorian capital of Quito has the third most affordable property in our study, with a 2-bedroom apartment in the city centre costing approximately $98,100. Quito offers buyers and investors the most affordable property in South and Central America.

The property market in Ecuador has seen prices rise gradually in recent years, providing steady returns for investors. Quito is known for its Spanish-influenced architecture and the colourful facades of many buildings. The city has a wide range of real estate available, ranging from charming colonial-era properties to more modern new-builds with all the mod cons.

$98,100

Average price of a 2-bedroom apartment

Rank	Rank	City	Country	Buying price (USD per sq. m.)	Average price of 2 bedroom apartment (nearest $100, USD)

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Methodology

We wanted to identify the global locations where property is the most and least expensive. To do this, we used data from Global Property Guide to record the average cost per square metre of a centrally-located 2-bedroom apartment in the capital city of a range of different countries. Exceptions here were Australia and Vietnam, for which the data referenced property prices in Sydney and Ho Chi Minh City respectively.

With this data, we were able to rank these cities by the average cost of a 2-bedroom apartment in each. We calculated this by using information from Fidelity Management, twhich states that the average size of a 2-bedroom apartment is around 800 square feet.

We also used this data to create a calculator, allowing people to select a city and input the amount they’re willing to spend to reveal the size of property they will be able to afford.

Several other sources were also referenced within our study, which were used to add context to our data and findings. These included The Financial Times, Zillow

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