Jul 17, 2010 with Comments 0
A Global Perspective On Prime Residential Property And Wealth
Prime, prestige, luxury – all labels applied to the top end of the residential property market in different parts of the world.
While the names may differ, the desire of High¯Net¯Worth Individuals to own and invest in the best property is ubiquitous around the globe. As we discover in our focus on prime property in Asia Pacific (page 18), even the world’s smallest emerging economies, such as Cambodia, are promoting themselves as development hotspots and attracting growing amounts of internal and external investment.
The tangible and straightforward nature of residential property, especially when the outlook for other asset classes is uncertain, explains this attraction. The results of The Wealth Report’s 2010 Attitudes Survey (page 40) clearly indicate that HNWIs, wherever they are around the world, still see property as one of the best assets to own, with most predicting values to grow in 2010.
Furthermore, property is viewed as a strategic investment that can ride out economic cycles. Most of the survey’s respondents said they were interested in long term capital growth from their property portfolios, rather than income.
Despite this globalisation of property as the “must-have” asset class, it would still be wrong to talk about the marketplace for the world’s most desirable properties as a single entity. Just as the labels vary, so do the characteristics of individual markets, not only between continents and countries, but also from city to city and region to region.
Each market – as highlighted by the latest results from our Prime International Residential Index (page 6) – sits in a different part of the economic cycle. Some are booming to the point where overheating is once again a concern, while others are still struggling to shake off the impact of the global recession.
Market drivers are also becoming more nuanced in the light of varying government responses to the credit crunch. Cities like Washington DC and Beijing, as The Wealth Report 2010 Global Cities Survey (page 34) discusses, now find themselves transformed into banking as well as policy hubs, attracting a new breed of property owner.
The last decade witnessed huge shifts in the global property market with many new opportunities emerging. The next 10 years are likely to see even more changes.
Luxury, prime or prestige – however you like to describe them – The Wealth Report 2010 offers a unique and invaluable insight into the world’s most valuable property markets.
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