Will the Super Rich Keep the Property Market Buoyant?
Despite the credit crunch the wealthy are getting wealthier and continually scanning the globe in search of the next, big investment.
[UKPRwire, Mon Sep 15 2008] Despite the credit crunch the wealthy are getting wealthier and continually scanning the globe in search of the next, big investment, we take a look at some of the factors they face and a few of the possible emerging hotspots they may invest in.
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The assets of High-Net-Worth Individuals (HNWIs) has risen and with more than 9.5 million of them roaming the planet, the need to locate the next property ‘Hotspot’ will be high on their agenda. So what is important to the person of wealth when looking for a property place to purchase?
According to global property professionals Knight Frank, the ownership of property accounts for 42% of HNWIs asset allocation.
The desire to secure more properties in the form of additional second homes or investments seems to be a driving factor for the seriously rich, with luxury, quality and prestige properties being the top priorities.
Other issues that HNWIs may consider when choosing primary residence destinations include the style and location of the property, as well as the amount of land that comes with it.
Sunbelt and Alpine resorts are still highly sought after, but concerns about the Mediterranean becoming uncomfortably hot and the fact that some ski resorts are struggling to guarantee snowfall, are mounting with the increased evidence of a Global climate change.
Lifestyle also plays a part when deciding on property areas. Some wealthy investors have shown an interest in buying where the real estate is close to olive groves, fishing ports and good sporting facilities.
Affluent buyers are constantly ‘spreading the net’ for their investments, looking at remote and unexplored destinations for future opportunities, and particularly seeking properties that offer a sense of individuality or uniqueness.
Although the more established locations, such as Western Europe and North America, continue to perform well, other areas such as North Africa, Asia and Latin America are now beginning to become more established.
Looking further field may achieve rewarding returns and look good on a property portfolio, but some conscientious investors have growing concerns about the affect long haul travelling is having on the environment in terms of carbon emissions.
Looking to the future, cities to watch are almost certainly to the East, according to recent trends in prices, with St Petersburg and Moscow in Russia, Delhi and Mumbai in India, and Guangzhou and Beijing in China, becoming popular choices.
Egypt's investment market is also sparking interest. Its population of 80 million is growing in wealth and there is a major tourism drive.
Sao Paulo in Brazil is also a city worth noting as is Argentina’s capital, Buenos Aries, as South America becomes more and more popular with international developers.
In Europe, Dubrovnik in Croatia is also expected to perform extremely well in the near future, as are areas of northern Europe including Ireland and Scandinavia. The temptation in tropical island locations, such as Isla de Margarita in the Caribbean, is also expected to increase where demand is driven by exclusivity and a ‘paradise’ appeal.
Finally, some experts predict that interest in tax havens is expected to grow hugely, with the demand coming out of the UK for property in Monaco and the Channel Islands steadily increasing.
Dan Johnson, Managing Director, comments: “So, the trend for the extremely wealthy to shape the future of the global property market is unlikely to change in the near future, and why should it? With many world wide economies continuing to prosper, and the number of HNWIs on the rise, the property industry is just going to go from strength to strength.”
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Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
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