Sotheby’s International Realty® and Wealth X have just released the inaugural edition of the Global Luxury Residential Real Estate Report 2015. I am proud to be associated with the Sotheby’s International Realty® network, which provides access to luxury real estate and homes for sale worldwide. Wealth-X is the world’s leading ultra high net worth (UHNW) intelligence and prospecting firm, with the largest collection of curated research on UHNW individuals, defined as those with net assets of $30 million and above. Together they have compiled the report offering an insight into the spending habits of luxury residential property owners and identifying the most significant markets for UHNW residential property investment.
Bloomberg Business reports that there are 211,275 UHNW individuals in the US with net assets of $30 million. According to the report, those UHNW individuals own an average of 2.7 properties. There are a variety of reasons for these investments but at the end of the day, those that comprise the UHNW consider investing in real estate as one of the most important parts of their portfolio, whether it be an investment property or a primary residence. In fact, nearly US$3 trillion of the world’s private wealth is held in owner-occupied residential properties, a value greater than the GDP of India.
UHNW individuals are increasing the number of properties they own in the United States, United Kingdom and Switzerland, with the U.S. listed as the most popular country for foreign UHNW investors. New York is the city with the highest number of UHNW-owned residences in the world, and London, Hong Kong, Singapore and Paris join the Big Apple as the most important international hubs for UHNW residential real estate. Some cities like Los Angeles, San Francisco, Washington D.C. and Dallas are all driving residential real estate trends, as are locations with particular appeal in terms of lifestyle. Although the Napa and Sonoma Valleys were not mentioned in the report, they certainly fall under this lifestyle category.
The value of UHNW-owned residences globally rose by 8% in the past year. As capital continues to flow toward key cities and locations across the globe, and as available land becomes scarcer, such growth in value will continue.
The inaugural Global Luxury Residential Real Estate Report 2015 is the definitive source of data, insights and trends for the world’s UHNW population and the global luxury residential real estate industry, revealing opportunities for this sector. If you are a UHNW individual, or are on your way to that elite group, and are looking for opportunities to buy a luxury home, estate, vineyard or winery in Napa Valley or Sonoma, please call me at 707-738-4820 or email me at [email protected]. Please be sure to LIKE me on Facebook so you can stay informed too!