Agrowing number of ultra high net worth (UHNW) individuals view
homes as opportunity gateways, driving buying decisions that are
based on potential opportunities from owning these luxury
residential properties, according to the latest study by Wealth-X
and the Sothebys International Realty brand.
The
UHNW Luxury Real Estate Report: Homes As Opportunity
Gateways two trends that are fueling the rise in the
number of ultra wealthy individuals who are buying luxury
homes:
- International home-buying by UHNW individuals (defined as those
with at least US$30 million in assets) from emerging nations
seeking a safe investment diversification. - Home-buying as part of a program to gain citizenship or
residency status in foreign nations.
The report provides insight into the UHNW residential real
estate opportunities in Sydney and Vancouver for buyers
seeking safe investment diversification; and Malta, the Bahamas and Sao Paulo, which may appeal
to ultra wealthy buyers who are seeking citizenship or residency
through property investment.
The UHNW Residential Real Estate index, tracked by Wealth-X,
rose to 115.2 in Q2 2015, an 8.3% rise year-on-year, and the sixth
consecutive quarter in which the index has risen. The continued
rise in the index reflects the confidence of UHNW individuals to
invest in luxury residential real estate.
The index takes into account the full range of luxury
residential properties that are owned by the worlds wealthiest
individuals. Wealth-X data shows there are 211,275 UHNW individuals
globally, who collectively hold nearly US$3 trillion in real estate
assets, equal to 10% of their net worth.
Below are other key findings from the report:
- 12% of second homes purchased by UHNW individuals in emerging
countries (those who reside in BRICS nations) are located outside
their country of residence. - Recent market fluctuations in emerging nations are leading a
new generation of UHNW investors to consider investing in luxury
residential real estate in Western markets. - Chinese UHNW individuals make up the third largest share of
foreign UHNW homeowners in the United States, behind only Canada
and the United Kingdom. - Twenty nations in Europe and the Americas now offer citizenship
or residency programs to individuals willing to invest in domestic
residential real estate. - Many residential real estate markets with such programs
including Sao Paulo, Malta, and the Bahamas offer good long-term
investment opportunities.
According to Philip White, president and chief executive
officer, Sothebys International Realty Affiliates LLC, this joint
report was designed to provide an understanding of the trends
driving buying decisions of ultra-high net worth individuals around
the world. The research reveals trends that go beyond traditional
motivations and help guide real estate investments that contribute
to long-term wealth, he said. “It underscores the important role
real estate plays in a larger strategy to build a valuable asset
portfolio.”
Download the full report
here.
About Wealth-X Wealth-X is the
global authority on wealth intelligence, providing sales,
marketing, strategy and compliance solutions to clients in the
financial services, luxury, not-for-profit and education sectors.
Its award-winning research and thought leadership are regularly
cited by the worlds media such as CNBC, Financial Times, Thomson
Reuters and BBC. Wealth-X has more than 250 staff in 10 locations,
including Singapore, London and New York.
About Sothebys International Realty Affiliates
LLC TheSothebys International Realtynetwork
currently has approximately 17,000 sales associates located in
approximately 800 offices in 61 countries and territories
worldwide.Founded in 1976 to provide independent brokerages with a
powerful marketing and referral program for luxury listings,
theSothebys International Realtynetwork was designed to
connect the finest independent real estate companies to the most
prestigious clientele in the world.Sothebys International Realty
listings are marketed on the sothebysrealty.com
global website. In addition to the referral opportunities and
widened exposure generated from this source, the networks brokers
and clients benefit from an association with the Sothebys auction
house and worldwide Sothebys International Realty
marketing programs. Each office is independently owned and
operated.