Super-rich opt for London despite temporary exodus amid pandemic
London’s standing as a home for the super-rich to live, invest and do business in has been unchanged during the pandemic.
Alongside New York, London is the most important city for ultra-high-net-worth individuals (UHNWIs), those with $30m or more, according to Knight Frank’s City Wealth Index.
There had been concerns that those choosing to leave cities at the peak of the pandemic would stay away.
European cities dominate the index this year, claiming eight of the top 20 spots, largely driven by investment and lifestyle factors. Paris follows London and New York in third position, with its ranking boosted by the luxury lifestyle the city has to offer.
“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, place-making and the coming redevelopment boom – no wonder development land is the third most popular pick for property investment this year for UHNWIs,” Liam Bailey, global head of research at Knight Frank said.
While New York led the investment category due to the number of top global firms headquartered there, London took the crown for the highest level of cross-border private capital.
Some $4bn trickled through the capital from the widest range of nationalities invested in commercial real estate in the year to September 2020.
Elsewhere Knight Frank predicts Asia is likely to see the largest rise in the number of UHNWIs – rising 39 per cent – but Europe will remain the second largest wealth hub with expected growth of 23 per cent.
Globally the number of UHNWs is predicted to grow 28 per cent in the next five years to 663,483, while the number of millionaires is set to rise 41 per cent.
“In the middle of a global pandemic and the related economic crisis why should we be interested in the wealthy? Simply put if we are to understand market and asset performance then the wealthy form a central part of the story,” Bailey said. “From policy makers to investors, a lack of insight into the behaviour and attitudes of the “one-percent” risks a serious misreading of economic trends.”