Home Topics Real Estate The world population of the ultra-rich rose 2.4% in the pandemic year

The world population of the ultra-rich rose 2.4% in the pandemic year

The annual wealth report, jointly published by Douglas Elliman and Knight Frank in March, also suggests that prices in major luxury markets could rise as much as 7 percent in 2021.

The number of wealthy private individuals (ultra-high-net-worth individuals, UHNWIs) rose 2.4 percent in 2020 to over 520,000, despite a monumental year of economic uncertainty. This emerges from the 15th edition of the luxury broker Douglas Elliman and the global real estate consultancy Knight Frank The Asset Report.

A very wealthy person is someone with a net worth of $ 30 million or more.

China led the way in prosperity growth with an additional 9,594 UHNWIs in 2020, followed by the US (6,080 UHNWIs) and Japan (1,199 UHNWIs).

Compiled by several Knight Frank research teams around the world, the Wealth Report, which will be released on March 2nd, provides insights into key markets, global wealth distribution, threats and opportunities to wealth, luxury trends and much more.

The report predicts that the global UHNWI will grow by 27 percent over the next five years, for a total population of 663,483 by 2025. The world population of millionaires is projected to increase by 41 percent over the same period.

During this time, Knight Frank expects Asia to see the largest increase in the number of UHNWIs with growth of 39 percent. Indonesia (expected UHNWI population growth of 67 percent) and India (63 percent) are expected to drive the continent’s prosperity growth.

Meanwhile, the U.S. is expected to increase its UHNWI population by 24 percent by 2025.

Liam Bailey | Photo credit: LinkedIn

“Asia is the greatest wealth story,” said Liam Bailey, Knight Frank’s global director of research, in a statement. “The US is and will remain the world’s dominant center of prosperity over the forecast period, but Asia will see the fastest growth in UHNWIs over the next five years, 39 percent compared to the global average of 27 percent.”

The data from the Wealth Report also reflects the participation of luxury buyers in the growing demand for homebuyers that has been seen across all socio-economic classes over the past year. According to the report, 26 percent of UHNWIs globally plan to buy a home in 2021, a significant increase from 21 percent in 2020. Such demand, particularly in areas with access to nature, could lead to price increases of up to 7 percent in certain areas Markets to Bailey.

“The demand for land and coastal properties is particularly high, with access to open space being the most desirable feature,” Bailey said in a statement. “The pandemic is a huge demand for places that offer an oversupply of wellness – think mountains, lakes and hotspots on the coast. Demand will help fuel prices in our key markets rise by up to 7 percent this year. “

Auckland, New Zealand, was the leader in Knight Frank’s Prime International Residential Index, with prices rising nearly 18 percent in 2020. (The index tracks luxury home prices in 100 cities and second home markets over a 12 month period.) Amid the island nations’ skillful handling of the pandemic and rapid economic recovery, the country has become an enviable place for ultra-wealthy, to buy property and obtain residence.

Ten of eleven North American markets tracked by the index finished in the top 20, including Palm Beach, which had 20 sales over $ 20 million in 2020, twice as many as in 2019.

The only two US cities that made the index’s top 10 placement were San Diego and Aspen, which saw price increases of 9.1 percent and 9.0 percent, respectively.

The report also pointed to the resilience of cities like New York and London, despite the severe impact they had suffered at the height of the pandemic. The two cities jointly took first place in the Knight Frank City Wealth Index, which measures a city’s wealth, investment and lifestyle offerings, followed by Paris.

According to the report, there are more UHNWIs in New York than any other city in the world with 7,743 UHNWIs. However, London has the largest number of high net worth individuals (individuals with a net worth of $ 1 million or more), at over 870,000 millionaires.

Howard Lorber | Douglas Elliman

“While 2020 was a difficult year, New York City has always been resilient,” said Howard Lorber, executive chairman of Douglas Elliman, in a statement. “It is the city’s enduring strength that makes it desirable to wealthy private individuals time and again. Ultimately, New York is the financial capital of the world and will always be the epicenter of art, fashion, architecture, food and entertainment. The immense value of the city lies in its constant reinvention. “

Email Lillian Dickerson

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