Ultra High-Net-Worth Individuals (UHNWI)
How many of the 34 million dollar-millionnaires own real estate in Paris ? That’s a question I would love to answer. Let’s just look at the top 1% of them, the ones with assets of $ 30 million or more. It appears clearly that real estate is a financial investment for them. It is nothing short of a Global Monopoly. Buying Rue de La Paix or Avenue Des Champs-Elysées is a stable investment, and a complementary approach to their investments in stock-markets.
The consequences of being on the Monopoly for UHNWI
Paris, with its Champs Elysees and world-class museums, is now feeling the consequences of being on the Monopoly of UHNWI.
According to TF1 -the leading French television channel- Paris expensive neighborhoods are now empty, most of the year.
In the video below -which is unfortunately in French – the President and CEO of leading luxury agencies Daniel Feau and Barnes International, explain how clients above € 20 million are exclusively foreign buyers.
For the South-American UHNWI casted in this video, a 400 square meters flat just a few minutes walk away from the Champs Elysees, selling at € 10 million, is a bargain.
A bargain compared to other capital cities of course, because in this Global Monopoly, the competition is London, New York or Hong-Kong, where house prices are much higher than Paris.
Empty 11 months of the year
According to Thibault de Saint-Vincent, CEO of Barnes International in France, this clientèle comes 3 to 4 weeks a year only. Leaving their real estate asset empty, 11 months of the year.
Due to the instability of currencies, of stock markets, real estate is becoming a new kind of asset that’s looked after by the ultra rich especially. If you think of the Russian ultra-rich for example, just consider this : 10 years ago, 34 rubles (Russian money) converted to 1 euro, while now they need to pay 78 rubles to get 1 euro. Any Russian UHNWI who didn’t buy an expensive flat in Paris or New York can only regret it today !
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