As many of you have seen, The Wealth Report was just released, which provides the global perspective on prime property and investment around the world. We’ve been asked several times to share the key takeaways for the investors among you, and for non-investors who are merely seeking a macro perspective on their home ownership in The Big Apple.
So here’s what you can learn:
- NYC is the leading city that’s home to the wealthiest individuals from across the globe, with 6,570 Ultra High Net Worth Individuals (UHNWI) It’s even outranking London, in that regard. That said, it’s noteworthy that London and NYC ping pong between #1 and #2 in the world for Current Wealth, Investment, Connectivity and Future Wealth, with LA, San Francisco and Chicago all making it into the Top 10.
- The US and the UK continue to be the most attractive investment environment for the UHNWIs, with Lifestyle and Security as the primary driving factors, followed by Safe Haven for Capital and Education for Children. It’s not hard to see why the prediction is that the US and UK will continue occupying the #1 and #2 spots for some time to come.
- We have to mention our published quote on NYC neighborhoods: In NYC, one of the more promising investment opportunities lie on the “Lower East Side, “where gritty meets trendy”, offering authentic New York without the whitewashing. The neighborhood between Houston and Delancey and east of Bowery to the East River is undergoing a transformation, with modern glass-fronted condos springing up alongside century-old red brick tenements, and projects such as the US$1bn Essex Crossing development acting as a catalyst for wider gentrification. Due for completion in 2024, this nine-building project will encompass a 15,000 sq. ft. public park, retail and office space and will be the new home of the Essex Street Market, reflecting the area’s burgeoning reputation for gastronomy and artisanal crafts.”
- In NYC – luxury prices proved resilient (rising 3.5% year over year) – despite the hiccups felt by locals and the local real estate industry. Remember, everything is relative on the global stage, so you always need to look at global investment when you consider future prospects for NYC real estate.
- The promise of federal investment in the US infrastructure has led to expectations of higher inflation and interest rates – pushing the dollar higher. While this does serve to put a short-term damper on foreign investing, the long-term outlook does not appear to be weighed down by such currency fluctuations.
If these highlights piqued your interest, you may want to take a deeper look into the report. There are fascinating insights into what the UHNWI’s are worried about, their shifting spending patterns and much more. Enjoy!