Real Estate Investor Magazine South Africa November 2014 | Page 55

REI OFFSHORE
REI offshore

The world’s most expensive skyscrapers

Expert Q&A

How does dual
citizenship
benefit
investors?
James
Bowling
CEO
Monarch&Co
What are the main benefits of dual
citizenship?

C

apital values of Hong Kong skyscrapers have hit $6,330 per sq ft, 50% higher than in
Tokyo, the city ranked second in Knight Frank’s Skyscraper Index. Hong Kong’s large
lead can be attributed to a variety of factors, such as the restricted geographic area
of the city which results in developers having to convert air into ‘land’ and build upwards.
The most notable jump in the index comes from San Francisco, now ranked 5th in the
global league table. This acceleration in value has been driven by the rapid growth in
California’s tech sector. In Europe, London comes out on top, with capital values valued
at more than double those in Paris or Frankfurt, demonstrating investor confidence in the
future prospects of the UK capital’s office market, with its new wave of skyscrapers.
James Roberts, head of commercial research at Knight Frank, commented: “Skyscrapers
are the Lamborghinis of the office world, as investors pay more to own these prestige and
high quality buildings. Upper floors in skyscrapers command higher rents compared to
office space in low rise buildings, due to the ego appeal of having an office that towers
over competitors. Also, the panoramic views are a strong marketing tool, as a client can be
taken into a meeting room offering an aeroplane perspective on the city below. Thus, the
premium rents on offer justify the high prices investors will pay to own such a property.”
Scott Picken
Founder and Chairman
International Property Solutions (IPS)
We are proud to announce that International Property Solutions was the
first South African company to be accepted as a Member of the Association
of International Property Professionals (AIPP). In an effort to improve the
professional standards of the international property market, Members of the AIPP
are invited and have committed themselves to global industry regulation.
Bolaji Edu
Chief Executive Officer
Broll Nigeria
Nigeria’s property market is becoming more sophisticated, with prime grade
developments in the commercial and retail sectors offering investors increasing
opportunities, as these markets suffer from an undersupply of A-grade stock.
We project a stabilising of rental growth over the next two to three years as the
current and development pipeline comes to completion.

www.reimag.co.za

While investors have noticed that having a
dual citizenship provides them with further
diversification of their investment portfolios
and spreads their risk, they have started
looking at dual citizenship as a family asset
which can be passed down to their immediate
family members. The decision to partake in
a citizenship or residency programme is not
merely a means of preserving the investors’
wealth, in many cases, the decision to pursue
dual citizenship is about having the option to
relocate to another cou