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Global rich pick Mumbai as future city

The Financial Express, Dubai

April 13, 2011


The world's rich and powerful see New York and London as the leading business hubs over the next 10 years but emerging nation centres are fast catching up, according to a new report. According to annual Citi/Knight Frank Wealth Report, Mumbai has gained in importance as global business city by 118 percent followed by Shanghai (91 percent) and Sao Paolo (66 percent). It said almost 40 percent of the worlds most exclusive residential property markets increased in value during 2010: Of this six of the 10 biggest gainers were in Asia.

"Luxury property price growth was highest in Shanghai with a 37 percent rise while London and New York saw increases of 10 percent and 13 percent respectively. Monaco remains the most expensive residential location in the world, followed by London," the report said.

Schooling and tax are growing drivers for those buying properties: 29 percent of SE Asia second-home buyers cited "education of children" as the reason for buying an extra housing property.

On average, property accounted for 35 percent of the investment portfolios of ultra-high-net-worth individuals (UHNWIs). Almost 64 percent of HNWIs will increase their donations over the next five years, while spending on art, fine wines and private jets and yachts will also rise significantly.

The 2011 edition of The Wealth Report shows that prime property remains incredibly important to the worlds wealthiest people. On an average, property accounts for 35 percent of UHNWI investment portfolios, second in importance only to investing in their own businesses.

Almost 40 percent of the 85 prime city and second-home locations in 40 countries that were analysed by the reports Prime International Index (Piri) rose in value during 2010. A number of locations, however, saw values fall significantly.