French HNWIs move to liquid assets – Timetric

French HNWIs are set to shift further towards liquid assets over the next two years, away from illiquid assets such as property, according to a report by Timetric.

This follows a period during which the French residential property market saw gains despite a global trend of declining property prices, reflecting the position of real estate as the biggest asset class for French HNWIs.

By 2011 it accounted for 24% of total French HNWI assets, up from 7% in 2007. UK and US property prices fell by 31% and 25% respectively during the period, while French prices were up 0.7%. Prices in Paris rose by 32.2%, assisted by foreign purchases of prime and super-prime property.

Timetric said that French HNWIs are set to move towards more liquid assets such as alternatives, with art, wine and classic and luxury cars leading the way.

Indices tracking these three assets since 2006 suggest that while the art market fell away in 2008, recent strong demand from markets such as China have pushed prices up again.

Fine wines have continued to do well, and the classic car market will benefit from a move toward so-called luxury collectibles.

By 2015, Timetric estimates that the breakdown of French HNWIs assets will be: 7.2% alternatives, 21% real estate, 7.8% cash and deposits, 24% fixed income, 19.4% equities, and 20.6% business interests.

To read Timetric’s full report click here:

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