Look: These cities are competing for millionaires’ attention – and winning it

The world’s millionaires and billionaires are never the sort to go into funk when asset prices are heading higher. For them, ‘cost of living’ is purely a relative term. Which is why whatever be the state of global and national economies, the rich will still be seeking their next big deal.

The Swiss private bank Julius Baer this week released its latest ‘Global Wealth and Lifestyle Report’, which tracks how HNWIs use a basket of goods and services that reflects their consumption patterns. The study picked those cities that figure prominently in their plans, and what the ground conditions are in those destinations.

Shanghai | China’s financial capital has the highest number of billionaires in the world after Beijing and was ranked the most expensive city in the world even as the city economy was hit hard by the zero-Covid policy. The government announced new support measures to reboot Shanghai’s economy to tackle low business confidence after the two-year pandemic. This includes policies aimed at stabilizing foreign investment, promoting consumption, and increasing investment.

London | The City recently overtook New York as home to the highest concentration of dollar-millionaires in the world. London’s real estate sector has bounced back rather quickly with demand for luxury properties seeing price increases at their fastest rate in nearly seven years.

Dubai | The only Middle Eastern city to make it to Julius Baer’s 2022 list has been one of the few commercial hubs to come out of the pandemic stronger than before. After reopening to travellers in mid-2020, the city hosted high-profile events such as the Expo and IPL T20 tournament. Hotel occupancy rates hit record highs in late 2021, while Dubai International Airport (DXB) re-emerged as the world’s busiest airport in terms of international traffic.

Taipei | Prior to the pandemic, Taiwan’s capital had seen steady increases in the number of ultra-high networth individuals. Although Taiwan lowered its GDP growth rate forecast for 2022, luxury home prices in Taipei are up a near 20 per cent year-on-year, making it the second-best performer in Asia.

Hong Kong | In 2020, Hong Kong had the most expensive residential property market worldwide, with an average property price of $1.25 million. However, the city could be considered one of the biggest losers of the pandemic. Due to the zero-Covid approach, both investments and manpower have shifted to other regional hubs like Singapore. Hong Kong’s transit hub status has also been hit because of the restrictions.

Singapore | Singapore has maintained its growth forecast for the year. However, economic growth could get hit due to supply shocks arising from the Russia-Ukraine conflict.

Monaco | Monaco has held on to its place as a billionaires’ playground. Even Covid has not had much of an impact on the tax haven, which according to some reports, has 12,000 millionaires living in less than one square mile.

Zurich | The financial sector generates around a third of the wealth and a quarter of the jobs in the city. Switzerland on Wednesday downgraded its growth forecasts, citing risks stemming from the Russia-Ukraine conflict and energy inflation.

Tokyo | In the 1980s, Tokyo’s Imperial Palace was worth more than the whole California. Japan’s economy came off those highs a long time ago and a recent record weakening of the yen has made the city more affordable.

Sydney | The city, which makes up for a third of Australia’s GDP, was hit hard by Australia’s two-year lockdown regime that brought flights and tourism to a halt. Overall, Australia’s economy shrank less than many of the other richer nations during the pandemic, but its rebound has been less spectacular. Sydney’s housing market has seen some value declines lately, largely due to rising interest rates.

Paris | The destination is once again bustling with tourists. But it’s not all good for France though with inflation reaching record levels in May and some saying that a recession could be around the corner.

New York | New York state's economy is the third largest in the US, behind California and Texas. The city, which has some of the most expensive real estate in the world, will struggle to keep pace with the country's growth rate due to a labor shortage, which is not expected to be filled until 2025.

São Paulo: Brazil's largest state has a GDP bigger than Argentina. In 2019, its GDP grew 2.6 per cent, twice the national average. Of late, inflation has skyrocketed in the region, mainly due to rising food prices and heavy taxation on imports.

Milan | Milan, which has the highest per capita GDP in Italy, is home to fashion houses such as Versace, Gucci, Armani, Valentino, Prada, and Dolce & Gabbana. In recent months, Italy has been hit by high inflation due to the sanction on Russian energy exports. The country is one of the biggest imports of Russian natural gas in the region.