Dubai, UAE - The Wealth Report 2017 highlights a change in UHNWI investment patterns as political uncertainty, cooling measures and barriers affect traditional markets. Education, lifestyle and alternative safe havens are overtaking as priorities, and savvy investors are looking for new opportunities. This year’s Wealth Report identifies five of the best neighbourhoods around the world poised to outperform in the following key categories:
Infrastructure and transport
Regeneration and expansion of public works, including major train lines, roads, airports and hospitals, are attracting developers and residents alike to urban and suburban areas. Notable development to infrastructure has cemented Dubai South as the emirate’s flagship urban project, with the highly anticipated first two residential communities due to complete 2019.
Dana Salbak, Head of MENA Research Knight Frank commented “Home to the Expo 2020 site, Dubai South benefits from on-going government spending on infrastructure projects, notably the expansion of Al Maktoum International Airport and the Dubai Metro’s Red Line (Route 2020), which once complete, will add to the potential capital value growth in the location.”
Gentrification and the ripple effect
Neighbourhoods similar to New York’s Lower East Side, aptly described by the New York Times as where “gritty meets trendy”, have traditionally been overlooked for more established postcodes. However, recent housing developments, such as the US $1bn Essex Crossing Development, are acting as a catalyst for wider gentrification.
Elsewhere, buyers looking for an authentic bohemian atmosphere, coupled with high-quality, good value housing, are turning to areas like Quartier Des Pâquis, Geneva. Alex Koch de Gooreynd, Partner, Knight Frank predicts this artisan quarter is poised to “outperform the rest of the city by some margin over the next five to ten years”, paralleling the transformation to that of London’s Notting Hill in the 1970s.
Buyers might be surprised to see long sought after locations, such as Mayfair, London, which provide some of the most stylish housing in the world on the value hunter list. However, relative value p/sqft redefines the postcode as more financially accessible and the arrival of some of the world’s most prestigious developments secure its position. Cosmopolitan neighbourhoods similar to the 10th Arrondissement, Paris, which are centrally located yet offer lower property prices are popular with creative industries. Hip inner city areas such as Woodstock, Cape Town, which are offering Urban Development Tax Incentive schemes, are seeing average property prices sharply rise to 2.2m rand. Alternatively, buyers looking for a beachfront location should consider the South Coast, Barbados with new projects such as the Capri development.
Technology and creative industries
With the recent boom in the technology and creative industries, high-tech sectors are shaping the residential and cultural landscape of neighbourhoods. Zhangjiang, Shanghai, previously known as a manufacturing and industrial area, has transformed into a major residential community as an IT hub. Mumbai’s largest tech firms are queuing to set up offices in the previously overlooked area, Majiwada-Kasarvadavali, resulting in an influx of tech HNWI’s and rapid improvement to social infrastructure. Mediaspree in Berlin, where hip clubs sit alongside Coca-Cola and Mercedes Benz will see its first high-rise skyline due to a surge in housing demand.
For the full list and details of the 20 neighbourhoods, please refer to pages 36-40 of the Wealth Report.
For further information please contact firstname.lastname@example.org
Nicola Milton, Head of ME Marketing, +971 4 426 7000, Nicola.email@example.com
Dana Salbak, Head of ME Research, +971 4 4267 681, Dana.Salbak@me.knightfrank.com
Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 413 offices, in 60 countries, across six continents. More than 14,000 professionals commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.
Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, Bahrain and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. www.knightfrank.ae