Global economic problems have failed to curb the rise in the number of wealthy individuals, according to the Knight Frank/Citi Bank Wealth Report.
Steward explains that the Wealth Report shows that for HNWIs property continues to be the most favoured asset class, accounting for approximately 31 percent of all their assets, an increase of some 3 percent on last year.
The 2012 report reveals that there are now 63 000 people worldwide with US$100 million or more in assets and the number of centa-millionaires has increased by 29 percent since 2006.
What is more, predictions indicate that the number of high net worth individuals (HNWIs) will continue to rise, says Lanice Steward, managing director of Anne Porter Properties.
Steward explains that the Wealth Report shows that for HNWIs property continues to be the most favoured asset class, accounting for approximately 31 percent of all their assets, an increase of some 3 percent on last year.
She notes that in today’s economies, a global shift in capital continues to be strongly evident with investment continuing to move east and to Africa.
This confirms Knight Frank’s prediction that in the next 40 years the leaders in national GDP growth and in improving per capita income will be Nigeria, India, Iraq, Bangladesh, Vietnam, The Philippines, Mongolia, Indonesia and Egypt.
Annual growth predictions in these areas are all between 6.4 percent and 8.5 percent for the next decade, she says.
“Despite this, traditional prime Western properties (most in the big cities) continue to attract top investors, including many Middle Eastern and Oriental people.”
The report further reveals that central London, central New York, Monaco, Paris, Berlin and Geneva are still able to attract buyers from a worldwide net and the proportion of Oriental and Middle Eastern purchases continues to rise year-by-year.
Kenya in Africa features as a second home destination (Africa, recorded the highest property growth worldwide in 2011) and there are hints that shrewd buyers should now be looking at the Mediterranean coastline where property values are at an all-time low.
In such less publicised asset classes as vineyards, art and vintage cars, the same buying patterns are also increasingly seen.
Steward says Knight Frank predicts that HNWIs will look to purchase property in high priced cities such as London, New York, Hong Kong, Paris and Singapore will retain roughly the same position they presently hold on the value scale for at least another ten years.
After that the shrewd investors will be look to Beijing, Shanghai, Sao Paulo, Dubai and Mumbai for additions to their portfolios and property is tipped for steady appreciation in all these cities.
According to the report, over 80 percent of HNWIs own two or more properties and these investors choose locations where there is good governance and political stability as high on their list.
Following good governance and political stability, HNWIs place lifestyle: when buying in the traditional residential markets, they rate this as the second most important factor influencing their choice.
As a result, traditional holiday properties such as Miami, now coming out of a 50 percent to 60 percent value slump are popular with Eastern buyers.
Kenya in Africa features as a second home destination (Africa, recorded the highest property growth worldwide in 2011) and there are hints that shrewd buyers should now be looking at the Mediterranean coastline where property values are at an all-time low.
HNWIs are reportedly more interested in commercial property than before with 59 percent of property investors eyeing office spaces and 31 percent looking at retail opportunities in the Western cities.
Steward adds that property remains a favoured investment asset for many people worldwide apart from HNWIs. – Denise Mhlanga
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