The high end property sector will see strong growth over the coming years, according to a new study by Candy & Candy, Savills and Deutsche Bank. Ultra-prime housing – properties worth more than £10m – are set to increase in value by 27% over the next 5 years in the world’s four main financial centres. Ultra High Net Worth Individuals (UHNWI) are driving demand for super high-end properties in London, New York, Singapore and Hong Kong.
Nick Candy, chief executive officer of Candy & Candy, said, “By 2017 the UHNWI population is expected to have increased by 20% and their wealth by 30%. A trophy safe haven property in a global city is typically at the top of the shopping list for wealthy individuals, and their continuing appetite for such investment is expected to exert even greater influence over global property markets in the next few years.’
In the four financial hubs there were a combined total of 300 transactions involving properties worth more than £10m over 2012, according to international real estate advisor Savills. While the value of these sales last hit £6.6 billion, it is expected that sales in this bracket will rise to £8.4 billion by 2017.
As the global UNHWI population grows, so too will the expectations of high-end property developers in London, New York, Singapore and Hong Kong.
Far from seeking out bespoke unoccupied property insurance, owners of luxurious property from Manhattan to Chelsea tend not to leave their properties as ‘vacant investments’, but use them as homes to live in. Taking up residence in a city like London offers the opportunity to carry out business as well as enjoy a cosmopolitan lifestyle.