Sotheby’s International Realty and Wealth-X have released a report naming Dubai, Cape Town, Madrid top UHNW real estate investment havens.
According to “The Europe, Middle East and Africa Luxury Residential Real Estate Report 2015“, high net worth [HNW] and ultra-high net worth [UHNW] individuals should consider several cities in Europe, Middle East and Africa as emerging opportunities for real estate investment. Specifically, its naming Dubai, Cape Town and Madrid as top picks.
- London homes listed at US$1 million+ reached an average price per square foot of $3104
- Cape Town’s average per square foot price on homes at US$1 million+ is $350
- Dubai’s average price per square foot on homes at US$1 million+ is $834
- Madrid’s price per square foot on homes at US$1 million+ is US$ 526
Dubai is a finance, trade and tourism hub in the Middle East. It’s also home to the world’s tallest building, the Burk Khalifa, and hosts the richest horse race in the world, the Dubai World Cup. It’s becoming seen as a portal for extravagant luxury and amongst its population are 34 billionaires and 495 UHNW individuals.
Madrid offers a lovely climate with close proximity to the Mediterranean and Pacific. Its billionaire count is 21 and has 1,315 ultra high net worth residents.
Cape Town has a growing luxury sector that offers abundant outdoor activity coupled with a vibrant city life. It’s also a melting pot of different cultures and peoples. Again, it is growing but it already has 2 billionaires amongst its urbanites and 150 UHNW individuals.
With Greece’s situation still up in the air, Russia and Ukraine’s credit rating at junk status, the US and Cuba officially reestablishing diplomatic relations and a growing luxury sector in Lagos, Nigeria, it will interesting to see how these real estate predictions continue to uphold. Meanwhile, demand for luxury properties continues to rise amongst those with ultra high net worth and that demand will need to be fulfilled in steadily growing and stable markets.