Global riches pick Mumbai as future residential hub

The global riches, high-net-worth individuals (HNWIs), see New York and London as the world’s leading hubs over the next 10 years, but emerging nation centres are fast catching up, according to the latest wealth report recently launched by Knight Frank and Citi Private Bank. The report reveals that Mumbai increases in importance by 118 per cent, Shanghai by 91 per cent, and Sao Paolo by 66 per cent.
 
It said almost 40 per cent of the world’s most exclusive residential property markets increased in value during 2010. Six of the 10 biggest risers were in Asia.
 
“Luxury property price growth was highest in Shanghai with a 21 per cent rise. London and New York saw increases of 10 per cent and 13 per cent respectively”, the report said. “Monaco remains the most expensive residential location in the world, followed by London.”
 
Schooling and tax are growing drivers for super-rich property purchases. 29 per cent of south-east Asia second-home buyers cite ‘education of children’ as their main second-home purchase reason. On average, property accounts for 35 per cent of the investment portfolios of ultra-high-net-worth individuals (UHNWIs).
 
The report predicts that 64 per cent of HNWIs will increase their charitable giving over the next five years; spending on art, fine wines and private jets and yachts will also rise significantly.
 
Almost 40 per cent of the 85 prime city and second-home locations in 40 countries that were analyzed by the report’s Prime International Index (Piri) rose in value during 2010, 17 of them by 10 per cent or more. A number of locations, however, saw values fall significantly. These include Dublin (-25 per cent) and Dubai (- 10 per cent).

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