Source: The Financial Times                      Date: 11 April, 2011

Six of the 10 cities worldwide that most appeal to wealthy individuals as places to live and invest will be located in Asia within a decade, according to research that highlights how the region is rapidly closing the gap with the west. The 2011 Wealth Report, published on Wednesday by Citi Private Bank, shows that Shanghai, Mumbai and Beijing are expected to shoot up the rankings by 2020, outpacing western rivals. Mumbai – expected to rise from 38th place this year to seventh by 2020 – stands out as one of the fastest movers. Shanghai is forecast to leapfrog Beijing to become the third-highest ranked city in the world.

New York and London will fight off competition from rapidly growing markets to retain the first two spots, according to the report, but other European cities – including Paris, Brussels, Berlin and Frankfurt – are set to experience a decline in popularity.

The increasing appeal of Asian cities reflects the region’s strong economic growth rates relative to western markets, as well as high employment levels, lower taxes and “liveability” – their good education systems and infrastructure. “When compared [with] other regions, Asia continues to be an attractive location for global talent, as it offers good job opportunities as well as a relatively easy environment for family relocation,” said Mr. Kwang-Meng Quek, global co-head of real estate investment at Citi.

The yearly report looks at the attitudes of wealthy individuals based on a survey of 160 of Citi’s global wealth advisers. Their views represent about 5,000 investors in 36 countries who are each worth more than USD100 million on average. Assessment criteria included the level of economic activity in a city, including the number of international business headquarters there; their influence on the global political stage, judged by, for example, the number of embassies and think-tanks that they host; and the quality of life for residents.