M
onaco is the world's priciest destination for luxury housing, with a staggering $1 million only securing 205 sq ft of prime residential property. The tiny principality's limited space and high demand drive up costs, making it nearly impossible to find affordable housing. According to this year's Knight Frank Wealth Report, $1 million would get you just 19 square meters in Monaco, compared to a more spacious 34 square meters in New York, the world's sixth most-expensive luxury real estate market.

    Monaco remains a magnet for the ultra-rich due to its tax-free status and high standard of living. However, housing costs are exorbitant, making it difficult for even the wealthy to find affordable accommodations. Renting a 1,100-square-foot property in Monaco starts at around $19,350 per month, with a $30,000 budget likely only stretching to a modest two-bedroom apartment.

    Monaco's extreme property prices are largely due to its lack of space to build more properties, resulting in a limited housing supply. The principality is the world's second-smallest sovereign state after the Vatican City, covering just 510 acres – smaller than New York's Central Park. To address this issue, Monaco has been reclaiming land from the sea for decades, with Savills investing over $2 billion to extend its coastline by 15 acres in 2019, creating homes for around 1,000 people.