London, New York prime ranked favourite cities by the tremendous wealthy
New York led the investment category due to the large number of top global companies headquartered and heavy domestic investment. Photo: Getty Images
According to a new report, London and New York are the most preferred cities for Ultra High Net Worth Individuals (UHNWIs) to live, invest and do business in.
Real estate agent Knight Frank’s The Wealth Report 2021 shows that European cities are the overall leaders of the City Wealth Index this year, occupying eight of the top 20 places “largely determined by investment and lifestyle factors”.
New York and London took first place together. They both shone in different areas. London topped the list for the largest number of “Prime” homes in any city, with over 68,000 homes valued at £ 2 million (US $ 2.8 million) or more.
New York took the top spot in the wealth category, which measures the number of UHNWI residents and high net worth individuals (HNWIs) in a city. It had 7,743 people with a net worth of $ 30 million (£ 21.2 million) or more.
In terms of the number of HNWIs, London had over 870,000 millionaires.
London also had the highest level of cross-border private capital (USD 4 billion) from a variety of nationalities invested in commercial real estate in the twelve months to September 2020.
Diagram: Knight Frank
Meanwhile, New York led the investment category due to the large number of top global companies headquartered and heavy domestic investment.
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With Tokyo and Hong Kong on the list, Asia occupied five of the top 20 positions and North American cities seven.
The report found that the coronavirus pandemic was moving away from cities during the lockdown, pulling people away in search of more space. However, the trend was only temporary, at least for the rich.
Factors such as wealth, investment and lifestyle choices meant that the super-rich still by and large favor cities.
Liam Bailey, Knight Frank’s Global Director of Research, said, “Long live the city … history shows us cities rise, fall, but keep rising. The pandemic has by no means undermined the city, but has shown the potential for rebirth. “
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“Expect a lot more about the 15-minute city, green cities and the upcoming redevelopment boom – no wonder developing land is the third most popular choice for UHNWIs for real estate investment this year,” she added.
One of the biggest trends in the real estate market since the onset of COVID-19 has been urban brain drain, especially for those leaving London.
Londoners moving outside the city bought nearly 74,000 homes in 2020, research from December showed.
According to Hamptons International Lettings, London graduates bought 73,950 homes outside the capital in 2020.