This is how little floor space $1 million will buy you in London, New York, and other prime cities

Property prices across the world’s major cities continue to soar despite the number of geopolitical issues, such as an impending Brexit or newly proposed policies from the new US President, shaking investment confidence over the last year.

Cities like London are in the middle of a housing shortage which means prices are soaring due to the lack of supply to meet demand.

Over in the US, New York is also experiencing a surge in property prices.

So $US1 million ($A1.3 million) would probably go a long way for the average person when buying a property.

However, according to luxury estate agents Knight Frank’s new “Wealth Report,” for the world’s richest people, $US1 million is pocket money when it comes to buying in the world’s most desirable cities.

Every year, Knight Frank releases a report on everything the world’s richest spend their money on, where they go, and where they live. Embedded within the report is a section on prime properties and spending trends for the world’s wealthiest.

And according to this chart, $US1 million buys them hardly any floor space in some of the most popular cities for the ultra rich:

NOW WATCH: A leading economist explains why bitcoin isn’t money

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.