London has once again beat off competition from a number of other thriving cities around the globe to be named the number one city in the world for investment from the wealthy who have money to spend. According to the findings that have been published by Knight Frank, the number of super wealthy people around the globe actually grew in 2013. It added that many of these are making the move to London to make the UK capital their "playground" with property purchases.
The reasons for buying in the UK sector at the moment are plentiful. For example, the fact that the economy is improving all the time is a positive for the investing buyer. Property prices are rising as the economy continues to build on a strong second half of 2013, and according to Knight Frank, London will be the destination for a sizeable per cent of the 5,000 people globally who joined the ranks of the super rich in the last year. This was a three per cent rise compared to the end of 2012.
London beat competition from New York, which was relegated into second place on the list, while the rest of the top five destinations for investment from the super wealthy was made up by Singapore, Hong Kong and Geneva in Switzerland.
Another reason given for this by Knight Frank comes from the fact that the UK does not tax money outside the UK for those from overseas who use investor visas to put their money into the economy. Throughout 2013, this was a big factor in helping to contribute to the 26 per cent increase in investment in the nation in the first three quarters of 2013, when compared to the same three-month period a year before.
Of this extra 26 per cent, a large portion was invested in the property market. Knight Frank reports that some 40 per cent of private banks and wealth managers said that their clients increased their allocation to residential and commercial property in 2013. The future looks good for the market as well, with 47 per cent expecting to increase it further in 2014.
- Wednesday 19 March 2014