San Francisco is a whelp of a city compared to mega metropolises like New York and London — The city has less than a million people compared to New York’s 8 million — but that didn’t stop the tech-minded town from placing on the top 5 list of locations being invaded by ultra-rich real estate buyers.
According to the Global Luxury Residential Real Estate Report 2015 from Sotheby’s, San Francisco made the exclusive list of cities where the super wealthy (The 211,275 people in the world who own $30 Million in assets) are buying the most property. San Francisco follows only New York, London, Hong Kong, and Los Angeles on Sotheby’s list.
San Francisco’s appeal to ultra-rich buyers seems to be the city’s unique lifestyle compared to the other wealthy enclaves on the list. According to Sotheby’s, the “UHNW” individuals (ultra high net worth) that live in the bay area are significantly younger than the general average of the group, at 56.
The uptick in the city’s luxury real estate market can also be attributed to an influx of wealthy foreigners. Sotheby’s writes, “After the recession, real estate in San Francisco has seen accelerated growth. The strong performance of the Bay Area’s economy led to affluent individuals profiting from appreciation in stocks and an influx of foreign buyers, increasing the demand for luxury homes in San Francisco. For younger UHNW individuals, the appeal of the San Francisco lifestyle, which differs significantly from that found in Los Angeles, is proving to be increasingly attractive.”
Sotheby’s report also highlighted that San Francisco hasn’t reached the ceiling of its luxury real estate boom. The city’s prosperous and ever-growing tech industry will likely lead to continued economic growth. Sotheby’s writes, “The youth of this city and its recent rise to affluence means that luxury residential properties are still priced lower than in some of the bigger markets – the most expensive property sold in 2014 was US$14 million, although the higher list prices of numerous other properties suggest an optimistic outlook for the future.”
(Via SF Gate)