According to the latest Global Development Insight Q3 2013, since the global financial crisis took hold five years ago, private investors have looked to bricks and mortar as a means of preserving and growing their wealth. Prime real estate prices in key locations such as Dubai and Hong Kong have reflected this, rising by 63% and 81% since early 2009.
Highlights for Q3 2013:
• Chinese investors are the most influential buyer nationality in the world’s prime new-build sector; they tend to buy properties in Hong Kong, New York and London.
• Investors from Singapore and Russia come in second and third place respectively.
• Chinese, Russian and US-based investors are all expected to retain and grow their market share in new-build property over the next 12 months.
• China’s growing importance reflects the rise of Asia as a wealth creation hub. Asia is second only to North America in terms of its billionaire population, and the number of high net worth individuals in China is forecast to rise by 137% over the coming decade, according to data contained in The Wealth Report.
• 39% of people surveyed named political and economic risk in a buyer’s home market as a key driver for international demand.
• New York, Paris and London were amongst the most sought after markets.
• 47% of respondents stated that ‘the safe haven effect’ was the biggest drawer for their market. Education and lifestyle are increasingly important when investing overseas.
Global Development Insight Q3 2013