London and New York will be the top destinations for the world’s wealthy elite as the number of people worth more than $30 million swells 50 percent over the next decade, according to Knight Frank LLP’s Wealth Report.
The two cities will remain the favored locations for the world’s richest people until 2023 even though the fastest wealth creation will be in Asia and Latin America, according to the London-based property consulting firm.
The wealthiest 100 billionaires’ net worth rose by $241 billion to $1.9 trillion in 2012 in spite of Europe’s debt crisis and a stalling U.S. economic recovery, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 100 wealthiest individuals. Carlos Slim, the telecommunications magnate who controls Mexico’s America Movil SAB, is the richest person in the world with a net worth of $71 billion, followed by Microsoft Corp. founder Bill Gates and Amancio Ortega, founder of retailer Inditex SA.
“Wealth creation has not been dented by the global economy slowing, nor has this affected the demand for prime property as the search for safe haven investments has continued,” said Liam Bailey, global head of residential research at Knight Frank. “These factors will likely drive prime values higher in the short to medium term.”
The number of high net worth individuals, classed as those with more than $30 million, rose by 8,700, or 5 percent, in 2012 and is expected to climb another 95,000, or 50 percent, over the next 10 years, according to the survey.
Monaco is the most expensive location to buy residential property with a luxury home costing $5,350 to $5,920 a square foot, according to Knight Frank. Jakarta and Bali posted the highest house price growth in 2012, with the cost of a property rising by 38 percent and 20 percent respectively.