_City Wealth Spotlight: Sydney & Madrid
Cities have an unwavering draw as economic, cultural, and societal hubs. That is why each year we assess 100 of them around the world against criteria, from their wealthy populations and global connectivity in the City Wealth Index with this year’s addition of real estate sustainability metrics.
Overall, London edges the top spot ahead of New York and Paris, which take joint second place. Los Angeles and Tokyo, Asia’s highest-ranking city, complete the top five. Asian cities Singapore, Hong Kong and Beijing follow at 7th, 8th and 10th respectively, while North American cities like Chicago, Toronto, San Francisco, Washington and Boston round out the top 20 cities listed. Sydney, Australasia’s highest entry, comes in at 14th - equal with European cities Madrid and Munich.
While these places vary when it comes to history and culture, it appears Sydney and Madrid are on par when it comes to the combined wealth, lifestyle and investment assessment of the global wealthy population. What is drawing them to such cities and what can they expect to add to their residential portfolios in either location?
Sydney
For those with an eye on Sydney, wealth rankings outstripped Madrid with some of the highest wealth levels recorded this year in the Australian city. Sydney continues to hold the highest concentration of the nation’s ultra-high-net-worth population, accounting for a quarter of these numbers. This group grew by 10.1% in the last 12 months, with this projected to increase by 31% over the next five years, and the cumulative Australian net wealth set to amount to over $1.1 trillion.
The prime market experienced this wealth-injection too with Sydney prices exceeding the national average at 16.2% growth compared to 12.3%. Naturally, this has appetite for luxury has been fueled by the caliber of impressive homes coming to the market and super-prime developments like Crown Residences at One Barangaroo, a first for Australia.
While transactions at the country’s first fully integrated hospitality-led branded residences continue to exemplify this demand and benchmark new sales records, among them five over $40 million and twelve over $20 million, it is its duplex penthouse at the very top of the 275-metre tower that puts Sydney in direct competition with some of the finest properties around the world. With a dazzling asking price of $100 million, the 800sqm Penthouse at Crown Residences will set yet another record as Sydney’s most expensive apartment and Australia’s most exceptional penthouse.
Image: The Penthouse, Crown Residences at One Barangaroo, Sydney
Located in Barangaroo, Crown Residences is an urban rejuvenation success story, transforming a former 22-hectare shipyard into a thriving waterfront precinct and destination of choice. Bustling with a new financial hub, retail, plethora of dining options and the new Crown Towers Sydney resort, it is only 30 metres from the harbour shoreline, while closely connected to Sydney's CBD only a kilometre away via walking/transport hubs, making it an ideal option for city believers.
Image: King St Wharf and the new harbourside precinct Barangaroo in Sydney
Located in Sydney's northern beaches, still within metropolitan Sydney, is another pristine property combining laid back luxury with the best of Sydney's waterfront living. This three-bedroom apartment in a secure, boutique complex in Narrabeen graces you with sounds of the waves and fresh sea air the minute you walk in. A light-filled layout offers a large open-plan living, dining, generous bedrooms and an outdoor entertaining area - all with ocean views that are entirely your own.
Image: 34/11-21 Ocean Street, Narrabeen, Sydney
Madrid
While Madrid showed lifestyle factors weighed equal to wealth numbers, our City Wealth Index indicated high investment levels for the Spanish city, giving it equal footing to Sydney. With the millionaire count set to hit 48,500 by 2023, this year will be a very important one for the city with investment and interest at historically high levels, according to our experts’ predictions.
With a growth rate at 4.5%, Madrid has some of the most competitive residential property prices in Europe, alongside Golden Visa schemes, exemplary infrastructure and key city renewal projects like Centro Canalejas Madrid and Madrid Centro. Like Sydney, it also boasts an abundance of green space, sunshine, work/life balance, healthcare, stability, security, and far less traffic than other global cities, bumping up the reasons ultra-high-net-worths should consider this capital for their next city purchase.
Image: penthouse views of Gran Via from the Gran Via Teatro 30
One such example that captures Madrid’s commitment to creating a world-class destination is the exemplary residential project Gran Via Teatro 30. Housed within the Teatro Fontalba, one of the first theatres on the legendary Gran Via street dating back to the 1920s, Gran Via Teatro 30 is a collection of 28 contemporary 2 and 3-bedroom apartments including two penthouses hidden behind a classic façade. With views of the iconic Gran Via strip, Calle Valverde, Calle Desengaño and the city beyond, the design of these apartments play on light and space, while the Madrid Centro location offers the very best of the culture-rich city on its doorstep. Construction is already underway with completion expected the summer of 2022.
Image: Teatro Gran Via 30 entrance
Another spectacular property coming to Madrid is Claudio Coello 11, the most exclusive estate in the city on the prestigious street of the same name. Eleven spectacular terraces of varying layouts (two duplexes, two penthouses and two single-stories) maintain the original character of its bourgeois Salamanca neighbourhood in exterior, high ceilings, large doors, windows and original balconies while renovated with contemporary design and functionality. On-site amenities include resident common areas, gardens, outdoor pool, gym and sauna. With the build of these homes underway, residents will be able to move in from December 2022.
Image: Claudio Coello 11