Cluttons
On the issue of a resurgence in EU financial and political instability, with the
exception of Muscat, all our Middle East offices suggested that there would be
no impact on the planned investment activity of our HNWI clients in London.
Furthermore, our Asian offices felt that HNWI would view London as being a more
attractive location, given its relative stability within the wider European region. That
said, some concerns do exist amongst investors. Our Bangkok office noted that
investors felt prolonged financial instability in the EU could have a significant impact
on London’s appeal given the risk of it being drawn into broader EU instability.
EU INSTABILITY - THOUGHTS ON IMPACT OF LONDON
INVESTMENT ACTIVITY
An improved global MAKES LONDON
MORE ATTRACTIVE
MAKES LONDON
LESS ATTRACTIVE
HAS NO IMPACT
ON LONDON’S APPEAL
economic outlook TOKYO
is translating into
a greater level SINGAPORE MANAMA
of investment MUSCAT DUBAI
activity by HNWI
closer to their KUALA LUMPAR BANGKOK ABU DHABI
home markets.
Source: Cluttons, VPC Asia PAcific
Conclusions for HNWI global investment
As anticipated in our report last year, an improved global economic outlook is
translating into a greater level of investment activity by HNWI closer to their
home markets. This is illustrated by the rise of Dubai among favoured investment
destinations, particularly by HNWI investors from Manama and Muscat, following
a widespread exodus as a result of the property market correction in 2009. This
year, our survey positioned the emirate in second place, behind London.
We expect to see this trend gain further traction over the course of the next 12
months across the Middle East and Asia Pacific, as HNWI investors pay greater
attention to local investment destinations, in line with improved economic prospects
in the emerging markets in particular. This is aided by the rising appetite for risk
in investment decision-making, expected to continue over the next year, which
comes through in the results of our survey. This allows HNWI to consider locations
that offer future growth potential, illustrated by Johor Bahru, which is located
in the province of Johor, across the strait separating the southern tip of Malaysia
and Singapore, which was named the top pick by our Singapore office. The rise
of the city stems from its positioning as what can best be described as a suburb
of Singapore, 30 minutes drive from the central business district, in addition to its
lower cost of living and corporate tax holidays.
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