World Elite Still Prefers New York Property Over Others
New York is still the destination for the most global elite, according to The Real Deal. That, however, didn't stop others from choosing London, which narrowly beat NYC in tallying for an overall number of elite buyers. The report by Knight Frank-Douglas Elliman contains these details and more.
The Knight Frank report detailed how New York is still leading other cities for being the city most preferred for residential and commercial investment. The study looks at different global trends among high-wealth individuals, with a requirement of having investments at $10 million or more.
As rosy as this news sounds, New York still fell second in a list that measured overall wealth. London took the first spot for several reasons; the list measured the number of high net-worth individuals and looked into their lifestyle within the city. These metrics measured a city's 'security and affordability.'
London is a peculiar first-placer, though; even with a property such as the One Blackfriars, a 50-story, 274 room place, London still has its own troubles. Economist reported that London is suffering from a bulge in property values, the fallout of a housing bust which almost brought down the global financial system.
Perhaps affected by London's price bulge, other cities showed a similar result. Most global housing markets are showing new highs in property prices. Even five of the world's most liveable cities--Hong Kong, London, Sydney, New York, and Vancouver--have prices which have never stopped climbing after 2009, where London's housing market bulge soared.
This may have contributed to New York's relegation to second place in the aforementioned list. The 'stock market volatility and a strong US dollar' may have made most foreign buyers shy away from the lucrative New York market. It created an 'oversupply' which resulted in the markets' overstock.
New York still had a better picture of the two markets. New York was still the preferred home of most billionaires, with 94 resident billionaires in the city. New York also holds the distinction for having the most of new high-net-worth individuals, with 2018 seeing 55,434 added to the existing number living in the city.\
The list, according to Douglas Elliman Development Marketing president and CEO Susan De Franca, showed that the wealthy demographic in the report was affected less by 'market fluctuations' than most other factors.