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The Wealth Report 2012: A Global Perspective on Prime Property and Wealth

April 12, 2012 Comments off

The Wealth Report 2012: A Global Perspective on Prime Property and Wealth (PDF)
Source: Citibank

Never before have wealth creation, economic risk and politics been so closely intertwined with the performance of prime residential and commercial property markets. Drawing on insight from Knight Frank, Citi Private Bank and other leading commentators, The Wealth Report 2012 pulls together all these strands and explains their connections and likely implications.

Using exclusive data and survey results, we uncover how the wealth being generated by the world’s fastest growing economies is an integral part of the equation, but also discover on page 16 that economic growth alone is not enough to create cities considered genuinely important by the world’s wealthiest people.

The central trend dominating prime property markets has been the relentless growth of “plutonomy” economics, a phenomenon that sees the wealth of the richest 1% growing far quicker than that of the general population – a trend we initially examined in our first Wealth Report in 2007.

A year later, in the eye of the global economic storm, plutonomy seemed under threat as asset values plummeted. Ironically the response to the financial crisis did more to revive the value of investments held by the wealthy than improve the position of the wider population. Gráinne Gilmore’s article on page 10 of this year’s report highlights growing political concerns about the potential effects of income inequality

My own analysis of prime residential property on page 26 points to the growing interest in wealth accumulation and wealth flows, both in the countries leading economic expansion in the emerging world, and also across Europe and North America where this money is increasingly being invested. In addition, our annual Attitudes Survey provides a unique insight into HNWI investment and spending trends. The results are featured throughout the report and there is a detailed regional breakdown on page 64 of Databank.

Categories: business and economics, Ciibank, housing and real estate, investments
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