The majority of wealthy investors see
residential property as being a key part of their portfolios, new research has revealed.
A study from Knight Frank and City Private Bank showed real estate makes up around one-third of the total assets of rich buyers worldwide, while 70% believe residential homes will be the top performer within the sector this year.
It also revealed London has lost its place as the world's top city to New York and, while the capital saw a 6.1% increase in luxury house prices in 2009, it lagged behind places such as Shanghai and Hong Kong, which saw climbs of 52% and 40.5% respectively.
Head of residential research at Knight Frank Liam Bailey said while the global recession has "had a huge impact" on prime property sales, some of the changes have not been as drastic as the media has suggested.
Earlier in the month, the UK Housing Market survey from the Royal Institution of Chartered Surveyors revealed supply of residential property in the UK outstripped demand for the second month in a row during February.