The number of ultra high net worth individuals in London is set to jump 17 per cent to 4,940 by 2023, more than the figure forecast for Paris, Geneva and Zurich combined, figures show.

The number of ultra high net worth individuals in London is set to jump 17 per cent to 4,940 by 2023, more than the figure forecast for Paris, Geneva and Zurich combined, according to the latest research from estate agents Knight Frank.

The Knight Frank European Cities Review revealed that Munich is forecast to see the largest increase in its population of wealthy individuals over the next decade with an increase of 48 per cent to 1,651 UHNW individuals, followed by Moscow with 33 per cent (1,096 HNW individuals) and Vienna with 26 per cent (483 UHNW individuals).

Of the smaller cities, Vienna and Barcelona are forecast to see a significant increase in ultra high net worth individuals, up by 26 per cent and 23 per cent respectively.

The survey found that prime markets are recording stronger price growth. Since 2009, the average annual change in prime property prices across luxury European city markets increased from -6.1 per cent to 2.1 per cent in the first quarter of 2014.

Dublin and Madrid’s turnaround in luxury price growth is most evident, while Monaco, Paris and Moscow have also seen an improvement. Some mainstream markets are catching up, with prices in the UK, Russia and Switzerland outperforming luxury prices in their key cities. On average luxury prices rose 2.1 per cent, while mainstream national prices rose 0.6 per cent in the year to March 2014

The survey showed that cities are becoming increasingly important to their national economies. Dublin accounts for 48 per cent of national GDP, while London is now responsible for generating 22 per cent of the UK’s GDP, up from 19 per cent in 1997.

The economic landscape is also picking up, with Munich, Rome and London forecast to see the largest rise in GDP growth in 2014, compared with 2008.

Kate Everett-Allen, head of international residential research at Knight Frank, said the lack of new supply, a widening pool of buyers and the movement of wealth away from geopolitical tension is likely determine the future performance of Europe’s luxury residential markets.

“Key to attracting the world’s rich will be accessibility and infrastructure. New flight routes or the introduction of a winter timetable from key buyer destinations can be sufficient to have a significant impact on demand levels,” said  Everett-Allen.

“Although wealth creation is forecast to be strongest in emerging markets in Asia and Latin America, the appeal of Europe’s luxury bricks and mortar will – due to its history, diverse cultures, architecture and climate – mean it will remain the location of choice for the world’s wealthy,” she added.