Worldwide luxury residential real estate as ‘opportunity gateway’ for UHNW Individuals
The last report published by Wealth X in collaboration with Sotheby’s International Realty demonstrated that collectively, the world’s Ultra High Net Worth Individuals currently have around 10% of their collective net assets invested in real estate around the world and are looking to place more investments in luxury real estate worldwide as a way of diversifying their holdings.
As a result, they are looking to invest their money in destinations that are capable of offering a distinct lifestyle option. The latest and third report published this year by Wealth X in collaboration with Sotheby’s International Realty reaffirms that the Ultra Wealthy are indeed buying homes as ‘opportunity gateways’ for diversification and citizenship or foreign residency.
Malta’s citizenship programme is a good long-term investment
MALTA FACT FILE:
35 – UHNW POPULATION
2 – NUMBER OF BILLIONAIRES
US$2.5 – MILLION AVERAGE LISTED PRICE (FOR HOMES OVER $1 M)
US$678 – AVERAGE PRICE PER SQUARE FOOT
4.2 – AVERAGE NUMBER OF BEDROOMS
59 – AVERAGE AGE
FINANCE, BANKING & INVESTMENT – TOP INDUSTRY
77% – PERCENT SELF-MADE
US$160 MILLION – AVERAGE NET WORTH
SPORTS – TOP HOBBIES
FRANCE, GERMANY & UNITED STATES – TOP COUNTRY FOR FOREIGN OWNERS
The exciting news for Malta is that the island is deemed to offer a good long-term investment opportunity. In the past year, market volatility in certain nations, particularly in China, has led buyers to seek homes in economically and politically stable locations as a hedge against market instability at home and Malta offers the desired stability in both regards. In view of this scenario, Malta’s citizenship programme enhances the island’s position as an attractive location for investment, especially as the EU is the most significant region of citizenship application.
As stated in the report, “Global citizenship” is becoming an increasingly popular tool for the world’s ultra wealthy. There are many different reasons why a UHNW individual might seek a second citizenship including, but not limited to: greater stability and security, tax efficiency, ease of travel, higher standard of living, increased options for children’s education, and investment opportunities that may not otherwise be available.”
Malta’s citizenship programme enables foreign nationals to purchase one property anywhere across the island, although more than one property situated within Special Designated Areas (SDAs) can be bought. All the island’s luxury lifestyle developments fall within this compiled list and most of them are located in prime, highly sought after locations in the island’s commerce, leisure and activity hubs.
More key findings from the report
To give an overview and insight on trends surrounding luxury residential real estate worldwide and the UHNW population, the key findings on the potential of the luxury real estate market extracted from the report are the following:
The findings of the report were issued using a proprietary valuation model to assess all asset holdings including privately and publicly held businesses and investible assets. Wealth X holds the largest existing proprietary database of UHNW individuals, highlighting their financial profile, passions and interests, known associates, affiliations, family members, biographies, news and much more.
Click here to read the full report