The rich are leaving the big cities The rich are leaving the big cities Article by Ruchir SharmaNews WAALI

Rich people are leaving New York, but the city’s local elites are a little complacent. They feel that Manhattan is still the center of the cultural world and always will be, so there is nothing to worry about. In fact – as a teacher told me recently in conversation – if the Dhankubars of New York march to Miami, it doesn’t matter to New York, it’s good for them. But complacency is not good for anyone, even in the greatest city in the world. Especially in the current situation. The pandemic has shown that office work can be done remotely full-time, making it easier than ever to relocate. This is called the cracked mirror effect. That is, shortcomings in New York – eg High tax rates, increasing crime, increasing anger towards capitalists etc. – This leads to flights to Miami, because Miami is not a tax problem and the people there are ready to welcome you with open arms. A similar effect can be seen in Moscow, where the Kremlin’s influence over the war in Ukraine and the strong global backlash are driving an exodus of wealthy Russians. They prefer places like Dubai, where they can live more comfortably. At the same time, Beijing businessmen have started to set up camp in Singapore due to increasing pressure from regulatory bodies in Beijing. Last year, the population of wealthy people in New York fell by 12 percent, in Hong Kong by 14 percent and in Moscow by 15 percent. All these rich are moving towards the cities of Dubai, Singapore, Miami. These three cities have paved the way for the capitalists and want to take advantage of the exodus of the rich for their own interests. These global cities are leading the way in attracting millionaires. This makes it one of the three luxury property markets where prices are expected to rise at the fastest rate this year. During my recent visit to these cities, I saw that they are a magnet for people. The climate is favorable, the way of life is comfortable and the governments are organized. As new restaurants and luxury malls open and art festivals are held, the flow of the rich increases. Singapore is the most established of the three. The number of millionaires here is 2.5 million, which is more than Dubai and Miami. You can feel energy here. Singapore recently opened an agency to host family wealth management firms. Incomes have increased significantly so that Singaporeans are now very careful about who is eligible for tax incentives and who is not. There’s a joke right now that $500 million is the new $100 million. A welcome in Singapore now requires the same amount. The city is generally simple, but during a recent visit I was struck by the wealth it displayed. I saw eight red Ferraris parked outside a house. Dubai has now started issuing golden visas, which allow wealthy people to buy property and live there. This has led to an influx of migrants not only from Russia, but also from South Asia and the Middle East. The real estate boom is at its peak and all the purchases are made in crores. The property market is stable as 80 per cent of transactions are done in cash. Dubai values ​​high culture as well as Guinness World Records. Take a look at the splendor of the new Atlantis, The Royal Hotel. It has 800 rooms and 17 restaurants, most of which are run by world-renowned chefs. You’re more likely to get a good meal there today than in New York. Miami was once considered a place for sunbathers. But now the rich who try to avoid taxes are being dragged there. New deals are made in the thriving financial district and shopping in new luxury shopping neighborhoods after a stroll on the sandy beaches. There is no other market like it in America. In other words, capitalist cities explore each other immediately. Business class seats are full on the Miami-Dubai flight. Manhattanites can be arrogant and say that the departure of these rich people does not matter to them, but that it is for the better, but this exodus does not bode well for them. For years, its population has been moving to Florida, where the economy is growing twice as fast as New York’s. The government there doesn’t spend half as much as New York. (This is the author’s personal opinion.)

Ruchir Sharma Best Selling Author Global Investor [email protected]