Booming number of Asian super-rich flock to invest in Monaco real estate

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Asian ultra-high net worth individuals are showing a keen interest in investing in Monaco property, as the Principality remains one of the safest places for wealth storage.  Today Asia has a climbing number of uber-rich individuals, whose assets are expected to significantly increase in value over the next couple of years. 

As the 2013 Asia-Pacific Wealth Report shows, high net worth individuals (HNWI) with over $1 million in investable assets will see their combined wealth rise to $15.9 trillion by 2015.  With so much money to invest, the attention of the wealthy is directed abroad.

Monaco is being targeted by super-rich Asians seeking a trophy home overseas. (Photo/Wikipedia commons)Monaco is being targeted by super-rich Asians seeking a trophy home overseas. (Photo/Wikipedia commons)

According to the 2013 China Private Wealth Report, 56% of respondents from a HNWI group have either started the process of emigration from China or are consider doing that in the near future.  The reasons for that are vast: from ecological pollution to a stressful business environment in China.  As a result, a large proportion of their wealth gets directed towards top locations for luxury residential investment, such as London, Switzerland or Monaco.

“These are the consumers for whom money is no object and they spend on every kind of luxury goods and service,” says Michael Silverstein of Boston Consulting Group.

Although rich Asian individuals spend their cash on a variety of luxury products, such as yachts or private jets, according to recent figures nearly 28% of their wealth is invested in real estate.  Europeans, for example, have 8% of their wealth held in real estate.

This opens incredible opportunities for luxury real estate markets, such as the one in Monaco.  The Principality, with its clean environment, pleasant climate, jet set society and sumptuous Monte-Carlo property for sale can successfully use this window of opportunity which Asian investors now present.  Asian HNWI are no longer looking for traditional luxury; their tastes have gone up a notch.

“You’ve got a Chinese demographic with a lot of money now.  That’s not entirely new.  They’ve had money for a while.  But their tastes are changing fast,” says Christine Lu, founder of Affinity China, a lifestyle platform for affluent Chinese travelers.