Luxury Property Investment
By Phoebe Ollerearnshaw
We tap into the most promising neighbourhoods in the world’s greatest cities to determine areas for potential growth and investment.
The ability to be ahead of the curve and identify future property hotspots is a coveted one by investors and second home buyers alike. In an otherwise uncertain investment world, real estate continues to attract capital—a strong demonstration of its stability over other asset classes. More often than not, this asset has rewarded brave investors with strong returns. Changing human behaviour and new technology are no doubt changing the nature of real estate, both as an investment class and as a product we all need—and use—as consumers. One thing is sure: these are challenging and exciting times for the industry. It must somehow find the perfect balance between risk management, entrepreneurship and innovation. Arts & Collections identifies the top property hotspots for ultra-high net worth individuals looking to invest.
Given its close proximity to Hyde Park and the recent announcement to redevelop the Whiteley’s shopping centre, properties in the Bayswater region are expected to see significant price rises in the coming years. The development will see new facilities anchored around a courtyard and a five-star boutique hotel. This attractive hub will work to gentrify the area around Westbourne Grove—making it a magnet for property investors with means.
Palm Jumeirah, Dubai
The land of luxury and excess is proving to hold a particular appeal for affluent investors looking for their next steal. The world’s first series of artificial archipelagos—aptly named ‘The Palm’ due to its distinctive shape—have quickly gained a global reputation. The island attracts young professionals and families and offers luxury apartments, villas and garden homes. Its appeal is set to broaden: the development of The Pointe and Nakheel Mall will offer consumers 5.9 million square feet of entertainment, dining and retail destinations.
Miami is generally proving to be one of America’s fastest developing cities. With an exciting luxury residential project in the pipeline—the Miami World Center— downtown is increasingly becoming the spot to keep an eye on. The venture will see over 500 new residences built alongside vast office and retail spaces. Meanwhile, access to the Brightline intercity rail system will enable better, more efficient transport links.
Brentwood, Los Angeles
It’s no secret that Brentwood is home to an affluent crowd, but a recent influx of restaurants and top boutiques have brought this esteemed area up a notch. Combined with the lure of some of LA’s best private schools and nearby beachside, this may become the new hotspot for budding property investors. Here, a 10,000 square-foot house on a desirable street may sell for a modest $20 million—compared with $30 million for a comparable property in Bel Air.
CBD, Cape Town
Known as the core of business ventures, Cape Town’s Central Business District is now also fast becoming a desirable residential hotspot. The area, which used to be dominated by imposing high-rise office blocks, is now changing for the better. Injection of new capital and innovative ideas geared towards attracting new property buyers are changing the atmosphere and the skyline. In this area, potential investors will find world-class restaurants, breath-taking views of Cape Town Harbor and Table Mountain and pioneering initiatives like ‘First Thursday’, when galleries and museums remain open until late.
St Leonards, Sydney
With its population estimated to double by 2030, St Leonards stands out as a key area for market growth. $6 billion is to be spent on improving the region’s infrastructure, supplying the neighbourhood with a new metro station and approximately 3,700 apartments. This mammoth project will transform the suburb from an industrial district into a zone with mixed-use facilities, including a world-class hospital.
This luxurious neighbourhood, which is at the heart of ancient Milan, has long been favoured by high net worth Italians. Packed with ateliers, period buildings, art studios and elegant boutiques, this residential area has a lot to offer its inhabitants and prospective investors. Plans are in place for a new metro line connecting this prestigious area to the city’s Linate Airport. When completed in 2022, this will further attract the attention of investors and second home buyers.
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