Why London Reigns As Top Luxury Destination

London still has the greatest long-term growth potential as a luxury destination, despite the upheaval caused by Brexit, according to a new report by CBRE and Walpole. The study compared the fundamentals of the most attractive luxury shopping destinations in the world, including New York, Hong Kong and Dubai, as well as newcomers on the luxury market, like Singapore.

The study found that New York is facing uncertainty due to President Donald Trump’s election, and Hong Kong is facing a decline in tourism. Meanwhile, the lower pound is attracting international shoppers who are grabbing bargains in London.

London’s luxury ecosystem, such as its plethora of five-star hotels, Michelin-starred restaurants, art galleries, auction houses and private member’s clubs also act as a strong incentive for shoppers.

London boasts more luxury shopping areas than New York or Hong Kong, and those areas are expanding even as new ones are developing — like London’s White City Westfields and the independent retailers in Shoreditch.

The world’s most famous department stores are found in London, and they continue to develop to attract greater numbers of visitors from both Britain and overseas.

Regarding residential property, London attracts an influential and affluent international clientele who own primary or secondary residences in the Big Smoke. According to the report, London’s appeal as a base is evident in the mounting demand for residential properties: over 120 are under construction in Battersea, Earls Court and Old Oak Common, with 470 more planned for Mayfair Chambers, Curzon Street and St. James’s Market. Ultra-high-net-worth individuals value owning a second home in London more highly than any other city in the world.

One of many contributing factors is the British education system, with world-leading schools and universities in the city itself, along with the proximity of leading board schools and the universities of Oxford and Cambridge.