Investments increase in London, Paris and Zurich
Wealthy investors look for safe investment destinations
International buyers are heading for London. The real estate market in the English capital has become more affordable due to the weakness of the sterling. London has invested in infrastructure and is ranked as one of the most important investment spots for ultra-high-net-worth individuals coming from developing countries and Northern Africa who want to relocate to safer countries.
The demand for real estate properties in the safe Europe has increased considerably and this has made prices rise dramatically. Prices in The Shard – that will be the highest skyscraper in London – will start from 50 thousand pounds per square metre. The demand is driven by Arab families but also by investors coming from Russia, Asia, South America and China.
The number of millionaires in China has increased by 140% from 2010 and they are expected to start diversifying their real estate investments.
David Cameron’s government has taken new fiscal measures – such as the flat rate taxation – to encourage the recovery of London’s property market. Furthermore, new rules have been introduced for visas. The time needed to obtain the authorization to live permanently in Great Britain changes according to the invested capital: with a ten-million-pound investment, it takes two years only to obtain the authorization to live in London for ever; with a five-million investment, buyers have to wait three years to be granted the right to live in the English capital; it will take four years for home purchasers who spend one million pounds to be allowed to live in the country permanently.
Prices in the luxury residential sector have risen by 8% in the last year - buyers come from all over the world; mostly from Spain and Uzbekistan – but the number of two-million-pound purchases has increased up to 52%. European investors come also from France and Greece – due to the worries investors feel in their own country. – Globally, the new wealthy come from Australia, Russia, Nigeria, Hong Kong, Malaysia, Taiwan, China and India.
Great Britain is not the only destination chosen by rich investors looking for a safe refuge in Europe. Switzerland has also opened its doors to foreign investments and is ready to negotiate taxes with property buyers. The demand is booming in Zurich, Paris, Geneva and Lugano – in the canton of Ticino.
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