World's wealthy still keen to buy

Despite a fall in value, the world's wealthiest people are still keen to invest in property, says a new report...

The 2009 edition of the Wealth Report from Knight Frank and Citi Private Bank reveals that:

Despite house price falls, almost 55 per cent of High Net Worth Individuals (HNWIs) plan to increase their exposure to residential property over the next two years.

Property in Monaco is the most expensive in the world costing an average of £51,000 per square metre for the best properties. London and Manhattan are placed second and third. 

Just under half of the locations featured recorded positive price growth on an annual basis in 2008. By the final quarter, however, price growth had either stalled or fallen in 75 per cent of locations.

Hong Kong saw the sharpest annual drop (-24.5 per cent), but prices for residential properties in Bangkok rose 22.5 per cent. 

Some previously buoyant markets have turned very quickly. Dubai, which recorded annual overall growth of almost 11 per cent, saw prices fall by 19 per cent in the last quarter alone.

The first Knight Frank World Cities Survey reveals that New York and London are likely to remain the world's leading financial centres, but Asian cities are catching up.

London takes poll position for global influence by securing top-five positions in four key ranking criteria - "economic activity", "political power", "knowledge & influence", and "quality of life".

Liam Bailey, Head of Residential Research at Knight Frank, commented, "Despite house price falls, the rich are committed to property as an asset class and the results of our Attitudes Survey, which represents the views of a cross section of Citi Private Bank's wealthiest clients, reveal that 55 per cent plan to increase their exposure to residential property over the next two years.

"In turbulent times the wealthy want their investments to be both tangible and transparent."

Source: www.findaproperty.com