Mike Nicholls is a Fellow of the Institute of Chartered Accountants, a member of the Gibraltar Society of Accountants, a member of the Gibraltar Funds and Investment Association and a board member of the Gibraltar Chamber of Commerce. Mike operates the Chesterton estate agency in Gibraltar and runs a real estate investment solutions consultancy.
world, property prices in Singapore average £16,500 per square metre and the government is struggling to keep house price inflation manage-
able. Singapore hosts the world’s densest population of millionaires, and limited land for development (the country is only 700km2 in size) means that property prices are not expected to plummet anytime soon. In Switzerland, Knight Frank believes prices in Geneva are set to rise as the country is forecast to see a 27% rise in its high net worth population between 2012 and 2022. The average house price in Geneva is £19,500 per square metre, the popularity of the city being explained by its position as a global financial centre, excellent schools, safe environment and the Alpine ski resorts on its doorstep. The Hong Kong property market
GIBRALTAR MAGAZINE • OCTOBER 2013
is hot, averaging £33,000 per square metre. The government is fighting to cool it down. Knight Frank put the city’s popularity down to strong demand from both local and international owners, and investors who see the city as an international financial hub with a strategic geographic location and a liberalized economy. Sounds like Gibraltar to me. Monaco has a reputation for being a playground for the super-rich. With just 36,000 people, its population is only 20% greater that Gibraltar’s. Property prices average £38,000 per square metre according to Knight Frank, many times more expensive than Gibraltar. The fact that neither individuals nor companies resident in
Monaco pay income or business tax, keeps Monaco property as the most expensively priced in the world. Using the above benchmarks, a Sanctuary villa in Monaco would fetch in excess of £55m (assuming 50% value for the terraces and outside space), £50m in Hong Kong, £30m in Geneva, and £25m in Singapore. An international investor seeking a low tax jurisdiction, which couples as a financial centre, has good schools, offers a very safe environment and is geographically located close to other popular locations and international hubs could well see an opportunity to invest in The Sanctuary, Gibraltar and save themselves a few million pounds. n
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