It’s official. Mumbai’s luxury real estate is one of the costliest in the world and prices increased by over 20% in 2010, according to Global Wealth Report by Knight Frank and Citi Bank.
Mumbai was on second position while Shanghai that witnessed a 21% price rise in luxury residential real estate prices was on first position.Only 32 cities in the world witnessed a price rise in luxury residential real estate properties. Asian cities such as Shanghai and Mumbai will start to close the gap in next 10 years with New York and London that are presently on top of the wealth report’s global cities index, the report said.
Mumbai was also ranked the world’s 25th most expensive cities in terms of property prices while Bangalore was ranked 52nd on the list. Monaco remains the world’s costliest cities followed by London.
Andrew Shirley, editor of the wealth report, said, “The collective worth of the global high networth individuals (HNIs) increased by 22% against last year. So many of the world’s luxury property markets benefited and the biggest increase is in wealth in Asia Pacific (35%) and that is where biggest increases in property prices is recorded.”
According to the report there are about 1.27 lakh HNIs in India. “Mumbai increases in importance by 118%, Shanghai by 91%, and Sao Paolo by 66%,” it said.
The HNIs, according to the report, would like to invest 10% of their total portfolio in residential real estate. This was double than what financial advisers would have done.
Lifestyle and investment are important drivers for luxury second home purchases but education is also seeing an increase in importance, especially in Asian HNIs.