London, New York top ranking of most-loved cities by super-rich
The most preferred cities for ‘ultra-high-net-worth individuals’ (UHNWIs) to live, invest and do business in are London and New York, a new report revealed.
Estate agent Knight Frank’s The Wealth Report 2021 shows that European cities are the overall leaders of the City Wealth Index this year, claiming eight of the top 20 spots, “largely driven by the investment and lifestyle factors.”
New York and London came in joint first position. They both shined in different areas. London claimed the top-spot for the largest number of homes considered ‘prime’ in each city, with over 68,000 homes worth £2m ($2.8m) or more.
In the wealth category, which measures the number of UHNWI and high-net-worth individuals’ (HNWIs) dwellers in a city, New York took the top spot. It had 7,743 individuals with a net worth of $30m (£21.2m) or more.
When looking at the number of HNWIs, London had over 870,000 millionaires.
London also had the highest level of cross-border private capital ($4bn) from the widest range of nationalities invested in commercial real estate over the 12 months to September 2020.
Meanwhile, New York led the investment category due to the high number of top global firms headquartered there as well as strong domestic investment.
READ MORE: How COVID pandemic is impacting property prices in UK and overseas housing market
With Tokyo and Hong Kong next on the list, Asia claimed five of the top 20 positions with North American cities claimed seven.
The report noted that while the coronavirus pandemic saw a shift away from cities during lockdown, with people moving away in search for more space, the trend was temporary, at least for the rich.
It said factors such as wealth, investment and lifestyle offerings meant the super-rich still by and large prefer cities.
Liam Bailey, global head of research at Knight Frank said: “Long live the city... history shows us that cities rise, fall, but always rise again. The pandemic, far from undermining the city, has shown up the potential for rebirth."
"Expect to hear a lot more about the 15-minute city, green cities, and the coming redevelopment boom - no wonder development land is the third most popular pick for property investment this year for UHNWIs," she added.
One of the biggest trends to emerge in the housing market since the onset of COVID-19 has been outmigration from cities, particularly for those leaving London.
Londoners moving outside the city bought nearly 74,000 homes in 2020, research from December showed.
London leavers purchased 73,950 homes outside the capital in 2020, according to data from Hamptons International Lettings.
