High demand for high end property

Wednesday, May 02, 2012

High demand for high end property

In the second half of 2011, more money flowed into Parisian properties than in any other European city, according to a study by CBRE Group Inc.

The appetite for property in Paris continues among investors, with many of the world's wealthiest people pumping their savings into 'safe bet' real estate in the city rather than the more fragile financial markets. Overseas property buyers now own 95% of property in Paris valued at over €6.7 million.

Across the world super rich overseas property buyers now dominate sales of high end property – typically defined as the top 5 per cent of the most valuable homes – in Monaco, Paris and London, buying properties that may only be in use for a few days a year. Rich international buyers are likely to own an average of four properties which they visit throughout the year.

Foreign buyers now make up 50% of those who own top end property in New York, while both property in Singapore and property in Hong Kong have experienced a growth in overseas buyers in the past 5 years. The percentage of foreigners purchasing trophy homes has risen from 12 per cent to 35 per cent Hong Kong.

“I am not surprised that these top-end markets are so international in terms of their buyers. The reality is the super-rich who buy these properties live increasingly global lifestyles,” said Liam Bailey of Knight Frank.

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