How Much Prime Real Estate Could You Buy for $1 Million?

Datastream

How Much Prime Real Estate Could You Buy for $1 Million?

The Briefing

• Housing affordability can vary significantly from city to city
• $1 million USD can buy over 6 times more space in Dubai than in Hong Kong

How Much Real Estate Could You Buy for $1 Million?

“There are three things that matter in property: location, location, location”

Those are words from Harold Samuel, a British real-estate mogul from the 1900s. Broadly speaking, it’s a quote that still holds true—property values in the world’s best cities have always been worth a pretty penny.

The scarcity of real estate is driven by trends such as urbanization, which is the migration of people into cities. While the first examples of cities were built thousands of years ago, it was only recently that the majority of the population began to live in them. In fact, the urban population just overtook the rural population for the first time in 2007.

Of course, certain cities simply hold more appeal for wealthy people, and as a result, competition in the prime real estate market can be fierce.

To learn more about the sky-high cost of prime property in cities, this infographic visualizes data from Knight Frank’s Prime International Residential Index (PIRI 100).

What’s a Million Dollars Good For?

The following table lists the number of square feet that you could buy with one million dollars in various cities. We’ve included more cities on this list than in the graphic to create a more comprehensive comparison.

Monaco, the most expensive city on this list, is incredibly land-constrained with an area of just 0.78 square miles. For context, New York’s Central Park is 1.31 square miles in size.

In second place is Hong Kong, which has become notorious for its difficult real estate market. Just 7% of the city is zoned for residential use, which pushes many of its citizens into sub-100 square feet micro apartments. These housing units offer grim living standards and are often referred to as “coffin homes”.

On the other side of the spectrum, Hong Kong recently set the record for the most expensive home in Asia. A 3,378 square foot penthouse sold for $59 million in 2021, translating to $17,500 per square foot.

What is Prime Real Estate?

You may be wondering what prime real estate is.

Knight Frank defines it as “the most desirable and expensive property in the area, generally defined as the top 5% of the market by value.” This suggests that the prices visualized above are on the upper end of the scale, and that more attainable homes are available.

» If you’re interested in urbanization, consider this infographic which ranks the 20 largest cities in the world.

Where does this data come from?

Source: The Knight Frank Prime International Residential Index (PIRI 100)

Datastream

Will Connected Cars Break the Internet?

By 2025, connected cars could produce 10 exabytes (exabyte = 1B gigabytes) of data per month, a thousand-fold increase over current volumes.

The Briefing

• Connected cars could be producing up to 10 exabytes of data per month, a thousand-fold increase over current data volumes.
• This has serious implications for policymakers, manufacturers, and local network infrastructure.

Modern connected cars are more like computers on wheels, when compared to the dumb cars that dominated the twentieth century.

Today’s connected cars come stocked with as many as 200 onboard sensors, tracking everything from engine temperature to seatbelt status. And all those sensors create reams of data, which will increase exponentially as the autonomous driving revolution gathers pace.

With carmakers planning on uploading 50-70% of that data, this has serious implications for policymakers, manufacturers, and local network infrastructure.

In this visualization from our sponsor Global X ETFs, we ask the question: will connected cars break the internet?

Data is a Plural Noun

Just how much data could it possibly be?

There are lots of estimates out there, from as much as 450 TB per day for robotaxis, to as little as 0.383 TB per hour for a minimally connected car. This visualization adds up the outputs from sensors found in a typical connected car of the future, with at least some self-driving capabilities.

The focus is on the kinds of sensors that an automated vehicle might use, because these are the data hogs. Sensors like the one that turns on your check-oil-light probably doesn’t produce that much data. But a 4K camera at 30 frames a second, on the other hand, produces 5.4 TB per hour.

All together, you could have somewhere between 1.4 TB and 19 TB per hour. Given that U.S. drivers spend 17,600 minutes driving per year, a vehicle could produce between 380 and 5,100 TB every year.

To put that upper range into perspective, the largest commercially available computer storage—the 100 TB SSD Exadrive from Nimbus—would be full in 5 hours. A standard Blu-ray disc (50 GB) would be full in under 2 seconds.

Lag is a Drag

The problem is twofold. In the first place, the internet is better at downloading than uploading. And this makes sense when you think about it. How often are you uploading a video, versus downloading or streaming one?

Average global mobile download speeds were 30.78 MB/s in July 2022, against 8.55 MB/s for uploads. Fixed broadband is much higher of course, but no one is suggesting that you connect really, really long network cables to moving vehicles.

Ultimately, there isn’t enough bandwidth to go around. Consider the types of data traffic that a connected car could produce:

• Vehicle-to-vehicle (V2V)
• Vehicle-to-grid (V2G)
• Vehicles-to-people (V2P)
• Vehicles-to-infrastructure (V2I)
• Vehicles-to-everything (V2E)

The network just won’t be able to handle it.

Moreover, lag needs to be relatively non-existent for roads to be safe. If a traffic camera detects that another car has run a red light and is about to t-bone you, that message needs to get to you right now, not in a few seconds.

Full to the Gunwales

The second problem is storage. Just where is all this data supposed to go? In 2021, total global data storage capacity was 8 zettabytes (ZB) and is set to double to 16 ZB by 2025.

One study predicted that connected cars could be producing up to 10 exabytes per month, a thousand-fold increase over current data volumes.

At that rate, 8 ZB will be full in 2.2 years, which seems like a long time until you consider that we still need a place to put the rest of our data too.

At the Bleeding Edge

Fortunately, not all of that data needs to be uploaded. As already noted, automakers are only interested in uploading some of that. Also, privacy legislation in some jurisdictions may not allow highly personal data, like a car’s exact location, to be shared with manufacturers.

Uploading could also move to off-peak hours to even out demand on network infrastructure. Plug in your EV at the end of the day to charge, and upload data in the evening, when network traffic is down. This would be good for maintenance logs, but less useful for the kind of real-time data discussed above.

For that, Edge Computing could hold the answer. The Automotive Edge Computing Consortium has a plan for a next generation network based on distributed computing on localized networks. Storage and computing resources stay closer to the data source—the connected car—to improve response times and reduce bandwidth loads.

Invest in the Future of Road Transport

By 2030, 95% of new vehicles sold will be connected vehicles, up from 50% today, and companies are racing to meet the challenge, creating investing opportunities.

Learn more about the Global X Autonomous & Electric Vehicles ETF (DRIV). It provides exposure to companies involved in the development of autonomous vehicles, EVs, and EV components and materials.

And be sure to read about how experiential technologies like Edge Computing are driving change in road transport in Charting Disruption. This joint report by Global X ETFs and the Wall Street Journal is also available as a downloadable PDF.

Popular

• Demographics5 days ago

  Mapped: The World’s Happiest Countries in 2023

• Misc4 weeks ago

  Ranked: Biotoxins in Nature, by Lethal Dose

• Markets2 weeks ago

  Mapped: The Largest 15 U.S. Cities by GDP

• Economy3 days ago

  Visualizing the Link Between Unemployment and Recessions

• Markets4 weeks ago

  Which Countries Have the Lowest Inflation?

• History2 weeks ago

  Vintage Viz: China’s Export Economy in the Early 20th Century

• Investor Education3 days ago

  Visualizing 90 Years of Stock and Bond Portfolio Performance

• Stocks4 weeks ago

  Visualizing the Global Share of U.S. Stock Markets