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Where the wealthy invest

by 3. December 2015 14:34

The world’s wealthiest people are choosing to invest in properties outside of where they normally live, and the most popular locations are the United States, United Kingdom and Switzerland, according to a new survey released this week.

The survey, which was published by Wealth-X and Sotherby’s International Realty, considered those with assets above US$30 million, otherwise known as ultra-high net worth individuals (UNHW). The report was compiled using Wealth-X’s proprietary wealth intelligence derived from their staff of global researchers.

In his welcome note, Philip A White Jr, President and Chief Executive Officer at Sotheby’s International Realty Affiliates LLC comments: “The world’s UNHW population is growing, and real estate plays the unique role of an investment opportunity and a need. Those that work hard want a haven they can retreat to so they can savour their free time. They also lead global lives and have varied interests that take them to far-reaching places. Many will purchase property in locations they fall in love with during their travels, or to meet the demands of their lifestyles.”

The world’s UNHW population now totals 211,275. Of these individuals each own on average 2.7 properties. An average buyer in this sector is 63 years old with a net worth of US$165 million. However there is an increasing number of younger buyers. They tend to purchase homes based on lifestyle considerations, including properties that are energy efficient, environmentally sustainable and technologically sophisticated.

The research finds that UNHWs are increasing the number of properties they hold outside their home countries – in particular in the United States, United Kingdom and Switzerland. And though places such as the Caribbean and the Mediterranean have traditionally been preferred choices, it seems that these individuals are now looking further afield to South East Asia, Canada and Belize.

Global cities including London, New York and Paris also remain popular. New York is the city with the highest number of UHNW-owned residences in the world. While Monaco has the highest density of foreign-owned UHNW residences.

The research shows that international homes now account for 16% of ultra-net worth individuals’ non-primary residences. Five years ago that figure was 11%.

The report concludes that “the future of luxury residential real estate looks highly promising and positive. With its tendency to gain in value faster than traditional real estate and its greater appeal to UHNW individuals with inherited wealth as well as its reputation as a safe asset, luxury residential real estate is set to see more and more growth in demand.”

This article has been provided by Experience Invest, a market leader in UK residential investments.

 

 

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