London is witnessing a heavy departure of millionaires and billionaires after the British government imposed a stamp duty tax on premium properties and an additional foreign capital gain tax. This was the last straw for many of the city’s rich, who are now moving to The Big Apple.
In the past 12 months alone, New York has seen a 7% growth in the number of London-based property seekers looking for residences in the city. This is according to the recent Transatlantic Wealth Report developed with the collaborative effort of Beauchamp Estates, which is a London-based real estate firm, New York City brokerage firm Leslie J. Garfield, and Dataloft.
Currently, there are about 191,000 millionaires and 140 billionaires who call London their home whereas New York has 389,100 millionaires and over 103 billionaires living within its boundaries.
Nonetheless, Londoners pay twice as much for every square foot of a premium property in London when compared to the cost of high-end homes in Manhattan. Moreover, moving to NYC sure sounds appealing considering homes in Manhattan are typically more spacious than the ones in London.
For instance, a big family home located in a posh locality such as Knightsbridge in London costs around £2,194 or $3,615 per square feet whereas an Upper East Side Manhattan home comes with a price tag of £1,196 or $ 1,832 per square feet.
Sensing the shift in demand, the UK –based Beauchamp Estates and New York’s Leslie J Garfield have combined their forces to actualize this report and to aid each other in selling properties in their respective countries.
Even though currently the total number rich individuals in London is higher, the tide has turned as more and more millionaires and billionaires are seeking residential properties in New York City. New York currently has more than 120,000 former British residents while that number goes up to 758,000 when looking at the US as a whole.
On the other end of the pond, about 197,000 former American residents live within the boundaries of The United Kingdom, most of them residing in Greater London or the neighboring counties.
According to this very same report, buyers from London typically spend in the neighborhood of £3.29million or $5million to £3.95million or $6million to purchase a Manhattan apartment. On the flip side of the coin, former New York residents are forced to shell out around £4million or $6million to £4.1million when buying a house or apartment in London.
The evidence is quite clear, and it suggests that the world’s richest are packing their bags and heading towards New York. Mainly because New York homes are more affordable as well as spacious compared to London properties. London’s humongous tax rate for any property over £1million has also played a catalytic role. So even if not the most friendly US business environment, packing your business and moving to New York might still be a winning bet.