Global Ultra Wealthy Population Hold Nearly US$3 Trillion In Owner-Occupied Residential Real Estate Assets

INTERNATIONAL LUXURY REAL ESTATE NEWS, REAL ESTATE NEWS

29th April 2015

Global Ultra Wealthy Population Hold Nearly US$3 Trillion In Owner-Occupied Residential Real Estate Assets
This week Malta Sotheby’s International Realty proudly announced Sotheby’s International Realty’s partnership with Wealth-X to provide valuable insights into today’s luxury real estate market and the buying behaviors of the ultra-high net worth consumer. Nearly US$3 trillion of the world’s private wealth is held in owner-occupied residential properties, a value greater than the GDP of India, a new report by Wealth-X and the Sotheby’s International Realty® brand released today showed. There are 211,275 ultra-high net worth (UHNW) individuals – defined as those with US$30 million and above in net assets – in the world and 79% of them own two or more residences. Some of the main hubs for luxury residential real estate are New York City, London and Hong Kong, but niche locations – such as Lugano, the Hamptons outside New York City, and rural areas around the world – are gaining in popularity.

Aerial view of Lugano, Italy. Breathtaking Lugano, Switzerland, is one of the niche locations gaining popularity worldwide.

The Wealth-X and Sotheby's International Realty Global Luxury Residential Real Estate Report forecasts that the ongoing shift in the wealth creation cycle from the West to the East, and the growing significance of intergenerational wealth transfers will have significant consequences on the luxury residential real estate market - with a noted emphasis on new developments and a change in investment grade cities.
  Below are other key findings from the inaugural report:  
  • The value of UHNW-owned residential real estate assets increased by 8% globally in 2014.
  • On average, UHNW individuals own 2.7 owner-occupied residences.
  • As of 2014, over 7% of the world's UHNW population made their wealth through real estate, up from 5% in 2013.
  • Ultra affluent women value real estate assets more than their male counterparts, holding 16% of the net worth in such assets, on average, compared to less than 10% for men.
  • Luxury residential real estate is an asset class typically favoured by UHNW individuals with inherited wealth: these individuals hold 17% of their net worth in such assets, compared to just under 9% for self-made UHNW individuals.
  • UHNW individuals with net worth between US$30 million and US$50 million typically keep their primary residences for over 15 years and their secondary residences for over 10 years.
  • Billionaires change one of their four properties, on average, once every three years.
  • Secondary residences are typically 45% more valuable than primary residences; twice the square footage and have 10 acres of land.
  • At 83%, Monaco has the highest density of foreign-owned UHNW residences.
  • Over 6% of the world's UHNW population have relocated their primary residence to a different country from which they were born – these individuals often keep a secondary residence in their home countries, and India is the leading country in this respect.

Monaco at dusk. At 83%, Monaco has the highest density of foreign-owned UHNW residences.

 
The Wealth-X and Sotheby's International Realty Global Luxury Residential Real Estate Report 2015, which looks at trends in the UHNW population's appetite for luxury residential real estate across the world, identifies specific attitudes, behaviors and locations that matter to this industry and this wealth segment. Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby's International Realty brand for this inaugural report, which underscores Wealth-X’s commitment to conducting groundbreaking research on the world’s ultra-high net worth (UHNW) population. Expert commentary from the Sotheby's International Realty team complements Wealth-X’s global intelligence on the world’s UHNW population, producing a report that demonstrates a true collaboration between the world’s leading UHNW intelligence provider and the global leader in luxury residential real estate. Luxury residential property is a core component to the anatomy of the ultra-affluent at the intersection of their lifestyle and investment.” “We are proud to partner with Wealth-X to provide valuable insights into today’s luxury real estate market and the buying behaviors of the ultra-high net worth consumer,” said Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “We believe that a solid investment in real estate is one of the single best factors for building long-term wealth, and that many of today’s ultra-high net worth consumers would agree.”
About Wealth-X Wealth-X is the world’s leading ultra-high net worth (UHNW) intelligence and prospecting firm with the largest collection of curated research on UHNW individuals, defined as those with net assets of US$30 million and above. Headquartered in Singapore, it has 13 offices on five continents.
About Malta Sotheby’s International Realty Malta Sotheby’s International Realty aims to serve the high-end residential and commercial real estate market, representing lifestyle properties of exceptional quality and unique characteristics. A brand that represents quality and luxury, its presence in Malta serves international clients looking for high-end real estate investment in Malta and Gozo, and local clients seeking real estate investment opportunities worldwide through our international network. Services include: Residential Sales & Letting, Commercial Sales & Letting, Property Management and Relocation & Residency. Malta Sotheby’s International Realty is operated by CSB Real Estate Ltd – forming part of CSB Group (est. 1987) who offer specialised business and commercial services to clients wishing to set-up or relocate their businesses to Malta.

Malta Sotheby's International Realty, Sliema, Malta. Malta Sotheby's International Realty office on 200, Tower Road, Sliema.


About Sotheby’s International Realty Affiliates LLC The Sotheby’s International Realty network currently has over 16,400 sales associates located in approximately 730 offices in 56 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world.
For more information, kindly direct your request to info@maltasothebysrealty.com.
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Malta Sotheby's International Realty

Launched on the Maltese islands in 2013, Malta Sotheby's International Realty had one clear vision and goal in mind – to offer our clients the highest level of commitment and quality of service in the high-end residential and commercial real estate market throughout the Maltese Islands. We derive our success from local expertise, professionalism, commitment, and discretion to meet any client’s needs. We understand the importance of finding a home that not only suits your needs but suits your vision for the future – a place that facilitates comfort, creativity and familiarity. We realise that a home is much more than a place to live - it is a sanctuary from where we build families and dreams. Our real estate professionals will guide you towards finding your ideal home throughout the entire buying and selling process. The culture of Malta SIR is defined by our knowledgable and dedicated diverse team which spans over multiple nationalities, whether you are a vendor or a buyer we speak your language.

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