What Is the True Value of Luxury Living?
For luxury real estate buyers, determining the value of a property extends well beyond its purchase price. Location, currency fluctuations, the cost of ownership, and the lifestyle a home affords all influence how a property is evaluated. As affluent buyers increasingly consider real estate opportunities across international markets, understanding these factors has become an essential part of making informed purchasing decisions.
As Christian Gattiker of Julius Baer has noted, international mobility is “a defining feature of wealth in 2026.” For buyers acquiring residences in multiple countries, comparing real estate markets requires a broader perspective, one that considers not only property values but also the financial and lifestyle advantages of each location.
Julius Baer’s Global Wealth and Lifestyle Report 2026 offers insight into these considerations. Its Lifestyle Index tracks a basket of 20 luxury goods and services across 25 major cities, including residential property, private education, automobiles, travel, and healthcare. Over the past year, the cost of maintaining a premium lifestyle increased by an average of 10.2% in U.S. dollar terms. Singapore remained the world’s most expensive city for luxury living for the fourth consecutive year, followed by Zurich, which rose from fifth to second. Monaco entered the top three for the first time, while Hong Kong, London, Shanghai, Paris, Sydney, Milan, and Bangkok completed the top 10.
While these rankings measure more than real estate alone, they offer a useful starting point for understanding the markets in which luxury properties are bought, owned, and enjoyed. For buyers, the central question remains: what makes a property worth its price, and how does its value compare with opportunities elsewhere?
1. Currency and Purchasing Power Shape Real Estate Opportunities
Currency movements can significantly influence the relative cost of acquiring property internationally. A home's purchase price may remain unchanged in its local market, yet its cost to a foreign buyer can shift considerably as exchange rates fluctuate.
Zurich’s rise in the rankings was driven largely by the Swiss franc strengthening against the U.S. dollar, while Monaco’s position reflects a strong euro and elevated property prices. Sydney recorded the largest upward movement, climbing six places to eighth, influenced by a stronger Australian dollar and the cost of imported premium goods.
The Americas experienced a different trend. For the first time in three years, no city in the region ranked among the top 10 for overall luxury living costs, largely reflecting the U.S. dollar’s decline against other major currencies. Prices in New York and Miami remained relatively stable.
For international real estate buyers, these movements can create opportunities to enter markets that may previously have been less accessible, or influence the timing and structure of a purchase. A weaker U.S. dollar, for example, may make American properties more attractive to overseas purchasers, while U.S.-based buyers considering homes abroad may find that their purchasing power has changed.
What it means for buyers: Evaluating a property in an international context requires looking beyond its listed price. Currency, financing considerations, and the relative cost of acquiring and maintaining a home all contribute to the overall investment. Understanding these factors can help buyers compare opportunities across markets more effectively.
2. Property Value Extends Beyond Price Per Square Foot
Price per square foot is a useful benchmark for comparing residential real estate, but it does not tell the entire story. Location, architectural distinction, property condition, amenities, and long-term market appeal all influence how a home is valued.
A September 2026 analysis by Sotheby’s International Realty examined residential properties priced at US $5 million and above. Monaco ranked first, with starting prices of US $6,581 per square foot, followed by Hong Kong at US $6,500 and Zurich at US $4,330. These figures illustrate the substantial differences in pricing across leading luxury property markets.
However, the purchase price represents only one component of ownership. Property taxes, insurance, maintenance, renovations, and ongoing operating expenses can materially affect the total cost of a home. Buyers maintaining residences in multiple jurisdictions must also account for differences in local regulations, ownership expenses, and property-related obligations.
A higher-priced property may offer compelling value when its location, quality, and long-term appeal align with a buyer’s objectives. Conversely, a lower purchase price does not necessarily translate into a more advantageous acquisition if ongoing expenses or the property's characteristics do not support the buyer's needs.
What it means for buyers: Assessing real estate value requires a comprehensive understanding of both the property and its market. Beyond price per square foot, buyers should consider the cost of ownership, the characteristics that distinguish a property, and its suitability for their long-term plans.
3. Lifestyle Is an Increasingly Important Real Estate Consideration
The value of a luxury property is closely connected to the lifestyle it supports. Access to exceptional dining, recreation, healthcare, and travel can influence where buyers choose to live, while the design and amenities of a home shape how they experience the property itself.
Julius Baer’s report points to continued spending on experiences and well-being. In Europe, 38% of respondents reported spending more on fine dining over the previous 12 months, while 37% increased spending on luxury hotel stays. In Asia-Pacific, spending on hotels and fine dining outpaced even health-related spending. Healthcare and leisure travel were the only categories to record increased spending across every region surveyed.
These preferences offer insight into the considerations that can shape residential demand. Within the luxury market, buyers may prioritize wellness facilities, private outdoor spaces, thoughtfully designed entertaining areas, and convenient access to restaurants, recreational amenities, and transportation. For others, privacy, architectural character, waterfront access, or proximity to cultural destinations may carry greater weight.
The surrounding community is equally important. A property's appeal is influenced not only by its interiors but also by the neighborhood, amenities, and everyday conveniences available nearby. These characteristics can shape both the ownership experience and the property's appeal to future buyers.
What it means for buyers: Lifestyle considerations are an important part of evaluating a property's overall value. Identifying the features, amenities, and location characteristics that matter most can help buyers select a home that meets their immediate needs while remaining attractive over the long term.
4. Location Remains Fundamental to Long-Term Value
Location continues to be one of the most significant considerations in luxury real estate. Yet the most desirable location is not necessarily the one with the highest property prices or the strongest overall luxury lifestyle ranking. Its value depends on the priorities of the buyer and the characteristics of the local market.
New York, for example, fell outside the top 10 in Julius Baer’s overall Lifestyle Index while ranking first globally for five-star hotel suites and second for private school fees. New York and Miami also ranked second for legal services. These distinctions demonstrate how a city's strengths can be more meaningful to certain buyers than its overall ranking suggests.
The same principle applies at the neighborhood level. Buyers may evaluate access to schools, transportation, healthcare, dining, recreation, and cultural amenities differently depending on their circumstances. Market conditions, the character of the surrounding community, and the availability of comparable properties also influence how an individual home should be assessed.
For buyers considering multiple locations, understanding these differences is essential. A property that meets one buyer's priorities may be less suitable for another, even at a similar price point. The objective is to identify the market and property that best align with a buyer's financial considerations, lifestyle, and long-term plans.
What it means for buyers: A thoughtful real estate decision begins with the right questions about location. Understanding the local market, evaluating neighborhood characteristics, and identifying the features that will matter most over time provide a stronger foundation for assessing a property's value.
The Bottom Line
The true value of luxury real estate cannot be measured by purchase price alone. Currency movements, the full cost of ownership, property characteristics, and location all contribute to how a home is evaluated. Equally important is understanding how a property aligns with a buyer's lifestyle and long-term objectives.
As affluent buyers increasingly consider opportunities across international markets, a comprehensive approach to evaluating real estate has become more important than ever. The strongest purchasing decisions balance financial considerations with the qualities that make a property desirable, both today and in the years ahead.
At The Patterson Group, we understand that finding the right home begins with understanding what matters most to each client. With deep knowledge of Alexandria's residential market, our team helps buyers evaluate properties in the context of their individual priorities, from location and architectural character to lifestyle and long-term value.
Whether purchasing a primary residence or considering a new investment, the goal is to find a property that offers more than an appealing price: a home that reflects your priorities and stands out for its enduring appeal.
Sources: Julius Baer, Global Wealth and Lifestyle Report 2026; Sotheby’s International Realty® brand analysis, September 2026.
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