According to the 2015 Global Luxury Residential Real Estate Report by Sotheby’s International Realty, the top cities for ultra high net worth residents are:
- New York, USA
- London, UK
- Hong Kong
- Los Angeles, USA
- San Francisco, USA
- Washington D.C., USA
- Dallas, USA
- Mumbai, India
- Paris, France
Ultra high net worth (UHNW) is defined by those with a net worth of US$30 million or more. There are approximately 211, 000 individuals worldwide who meet this requirement and each person averages 2.7 properties. The report also states that “United States is the most popular country for foreign UHNW individuals looking to buy secondary residences.” As you can see from the list, the United States holds the majority of UHNW residents worldwide. Also important, the world’s UHNW population grew 6% between 2013 and 2014, increasing the demand for luxury properties. Luxury real estate is deemed as any property valued at US$1,000,000 or more. Amazingly UHNW individuals tend to own at least 2 properties, and many have 3 or 4. These estates are purchased primarily for practical and business reasons, but emotional satisfaction plays a vital role as well.
The report graciously breaks down the typical profile of luxury property owners by city. For example, the average UHNW New York resident is 60 years old, occupied in banking, investment, or finance, and has a median net worth of US$120 million. Sotheby’s CEO Kathryn Korte reported that a new record was set in Manhattan for the most expensive co-operative apartment ever sold at $70 million in 2014. It later broke the record again at $71.3 million. Interestingly, the report also claims that the emerging UHNW class from China and Russia are primarily younger, self-made individuals. China’s UHNW population has an average net worth of US$141 million and often elects to live in neighboring countries like Hong Kong and Singapore.
Definitely take a moment to read through the report for some interesting information regarding the world’s elite, where they chose to live, and how it affects the global real estate market.
from Anthony S Casey and Real Estate http://ift.tt/1cy5oUU