When Aloe Blacc wrote the iconic soul song, ‘I Need a Dollar’ in 2010, he had to have known how his lyrics would take on new meaning 15 years on. All eyes are on the actions of the US as it looks to gain maximum leverage from the fact that its currency accounts for 58% of the value of foreign reserve holdings, according to the IMF. Still, it represents the primary currency for comparing the value on offer in different international real estate markets.

As things stand in 2025, prime residential property can be purchased for anywhere between $3,900 per square foot in Hong Kong and $250 per square foot in Kuala Lumpur, with London at $1,920 per square foot. In local currency terms, prices across the Savills World Cities Index have increased by 2.2% over the course of 2024 and by 52% over the past decade.

Over the last 10 years, London and Kuala Lumpur have been the only two markets to see price falls in dollar terms, with the UK capital also offering value since prices have decreased in sterling by -13%. It was the only World City where prime house prices fell in both local and US currency over the period. Similarly, New York, Cape Town, and Paris have seen dollar price increases of less than 5%, though Cape Town experienced price increases in rand (R) of 57%.

Changing demand patterns since 2019 are much more readily apparent in markets where the currency is pegged to the US dollar, such as the UAE dirham and the Hong Kong dollar. Dubai has been the hottest of hotspots recently, reflected in price increases of 66%. Hong Kong, on the other hand, has seen political and economic turmoil, resulting in price falls of -15%.

Savvy dollar-based buyers would have done well to purchase prime property in Cape Town five years ago. Prices in local terms have increased by 9% since 2019 but have fallen by -11% in dollar terms over the same period. Tokyo, Kuala Lumpur, Shenzhen, and Paris have also each seen falls in dollar terms against local currency rises in the last five years.

For dollar-denominated buyers looking to grow their property portfolios as disruption presents unexpected opportunities, the question will be, to misquote Aloe Blacc, ‘where in the world am I gonna go tomorrow?’

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