Nearly a third of ultra-high-net-worth individuals will invest in international property in the next two years, according to Knight Frank’s 2017 Wealth Report.
The study of those with more than $30m (£24.2m) in net assets showed that 32% expected to invest in cross-border real estate, while a quarter of private wealth was already held in real estate assets.
In commercial real estate, 27% of global transaction volumes came from private buyers in 2016, up from between 20-25% over the past ten years.
Knight Frank’s Family Office Investment Trends survey also found that all its respondents were looking to increase their allocations to property over the next 12 months.
The average rate of growth in the value of the world’s prime residential market slowed from 1.8% to 1.4% last year. Chinese cities dominated the rankings with Shanghai reporting a 27.4% rise in luxury residential prices. Beijing, at 26.7%, and Guangzhou, at 26.6%, came second and third.
Australasia was the strongest-performing region with an average 11.4% rise, year-on-year.
By contrast, prime central London’s market slipped by 6.3% as stamp duty changes came in, although the report said activity grew in the final quarter of the year.
Despite the fall in prices, London topped the ranking of “cities that matter to the wealthy”, which measures the current wealth, amount of investment in 2016, the number of inbound business and first-class flights, and a forecast for future wealth in the city.
New York came second with Hong Kong, Shanghai and Los Angeles rounding off the top five.
Globally, the number of ultra-high-net-worth individuals grew by 3.3% in 2016 to 193,490. The UK topped the list in Europe, with a 30% rise forecast in the coming decade.
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