Wealth X and Sotheby’s International Realty Ultra-High Net Worth Real Estate Report: Homes as Opportunity Gateways
Wealth-X and Sotheby’s International Realty
This is the third year that Wealth-X and Sotheby’s International Realty have collaborated to release an annual report focusing on the trends of ultra-high net worth individuals (which are defined as people with at least 30 million U.S. dollars in assets) in relation to the luxury residential real estate market world wide. In the third edition report released the focus is on Homes as Opportunity Gateways. The report provides valuable insights into what is fueling the rise in the number of ultra-high net worth individuals (“UHNW”) purchasing luxury real estate outside their home countries.
A summary of the findings are as follows:
- UHNW Residential Real Estate Index rose by 8.2% comparing year-on-year. It has now risen for six consecutive years other than falling slightly in Q4 of 2013. The index represents real estate on a global basis and indicates the strength of the market generally as it relates properties purchased by UHNW individuals.
- Emerging Market UHNW individuals purchased 12% of their second homes outside of their country of residence.
- Recent volatility in emerging markets are leading to UHNW investors considering investing in luxury real estate outside of their country of residence.
- The UHNW Chinese now make up the third largest percentage of foreign homeowners in the U.S. with only Canada and United Kingdom having more UHNW purchasers.
- Cities of interest to these emerging market homeowners that are purchasing more western residential properties are doing so in cities like Sydney and Vancouver which still have values that are three to five times less expensive then London and New York City.
- Many nations in Europe and the Americas offer citizenship and/or residency programs to individuals investing in domestic residential real estate and many more nations are considering such programs which many UHNW individuals utilize.
- The cost of real estate investment for residency and/or citizenship begin at $250,000 U.S. dollars.
- Many markets including Malta and the Bahamas offer good long-term investment opportunities due to the residency/citizenship programs.
Read the whole Wealth X report here.
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Wealth X and Sotheby’s International Realty Ultra-High Net Worth Real Estate Report: Homes as Opportunity Gateways
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