2901 Broadway, San Francisco, CA.
San Francisco is a puppy of a city compared to megacities like New York and London – the city has fewer than a million residents compared to New York’s 8 million – but that hasn’t stopped the tech-savvy city from making the top five To come list of locations that ultra-wealthy homebuyers are invading.
According to Sotheby’s 2015 Global Luxury Residential Real Estate Report, San Francisco made the exclusive list of cities where the super-rich (the 211,275 people in the world who own $ 30 million in net worth) buy the most real estate. San Francisco only follows New York, London, Hong Kong and Los Angeles on Sotheby’s list.
San Francisco’s attraction for ultra-wealthy shoppers seems to be the city’s unique lifestyle when compared to the other affluent enclaves on the list. According to Sotheby’s, the “UHNW” people (ultra high wealth) living in the bay are, at 56, significantly younger than the general average for the group.
The boom in the city’s luxury real estate market is also due to an influx of wealthy foreigners. Sotheby’s writes: “After the recession, San Francisco real estate has seen accelerated growth. The strong economic performance of the Bay Area resulted in wealthy individuals benefiting from the appreciation of stocks and the influx of foreign buyers, which increased the demand for luxury real estate in San Francisco. For younger UHNW individuals, the appeal of the San Francisco lifestyle, which is vastly different from that in Los Angeles, is proving increasingly attractive. “
Sotheby’s report also highlighted that San Francisco has not reached the ceiling of its luxury real estate boom. The city’s thriving and steadily growing technology industry is likely to result in continued economic growth. Sotheby’s writes, “The youth of this city and its recent surge in affluence mean luxury homes are still cheaper than some of the larger markets – the most expensive property sold in 2014 was $ 14 million, despite the higher list prices of Numerous other properties suggest an optimistic outlook for the future. “
(Via SF Gate)