International Private Capital Survey 2013/2014
Competitors gain ground on London as world economy recovers
Once again this year, London is positioned as the primary go-to destination for
investment, with all our offices, with the exception of Jakarta, naming the city
amongst their top three offshore investment targets for their HNWI clients; a
pattern little changed on last year. Our offices in Abu Dhabi, Dubai, Kuala Lumpur
and Bangkok noted that clients in these markets generally view London as their
first choice investment target. However, this is not a consistent pattern, with less
of our offices naming the city as their first choice target for their HNWI clients
when compared to last year, reflecting changes in relative domestic, regional and
international economic and market performance. For example amongst Bahraini
HNWI, London now sits in second place to Dubai, following the turnaround in that
market, while Singapore based investors now consider Johor Bahru (Malaysia) as a
more attractive destination for real estate investment than London.
TOP 3 HNWI INVESTMENT TARGETS
The perceived Rank 2012/13 2013/14
safe haven status 1 London London
of London was 2 Singapore, Kuala Lumpur, Yangon Dubai
identified as the 3 – Singapore
primary driver Source: Cluttons, VPC Asia
The perceived safe haven status of London was identified as the primary driver
for investment for investment in the British capital amongst HNWI clients. This was true for both
our UAE offices in Abu Dhabi and Dubai, where London’s relative stability when
in the British compared to other European nations that are still suffering from the aftermath
capital amongst of the financial crisis, was cited. In addition, the close ties with the city are also
considered important. Amongst Abu Dhabi investors in particular, the close
HNWI clients. relationship between the UK and the UAE is the primary driver for this focus,
with HNWI from the Emirati capital willing to consider all asset classes in London.
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