We provide a whistle-stop tour of the current trends inside the latest edition of The Wealth Report and predict the shape of the year ahead.
At a glance
Above: Data drive.
Wealth continues to be created around the world – particularly in Asia’s economic hubs. The world’s UHNWI population is expected to rise 27% in the next five years, however, the changing geopolitical and regulatory environment, and shifting social attitudes to wealth, means there should be a reassessment of what it means to be wealthy. The dominant investment trends in this edition are wellness, impact investment and Environmental Social Governance (ESG).
Results of Knight Frank’s new global Wealth Sizing Model suggests that geopolitical uncertainty is failing to slow wealth growth. In 2019, the world’s UHNWI population was 513,244 and is expected to increase by 27% in the next five years, taking the total to 649,331.
The US dominates with 240,575 UHNWIs, more than Europe and Asia combined. However, Asia’s forecast five-year UHNWI growth is double North America’s projected rate, with high growth expected in India (+73%), China (+58%) and Indonesia (+57%).
Above: US and China dominates the economic landscape.
China and the US are under the spotlight once again. Although both countries dominate the market, research has shown that they have created two distinct economic ecosystems. In addition, both the US and China dominate the unicorn landscape in 2020.
For the 2020 edition of The Wealth Report, we’ve looked at 100 cities around the world, inspecting each city’s global appeal as a place to invest, live and spend time. The metrics were based on three main categories – wealth, investment and lifestyle. New York claimed the top spot, with London pushed into second place. Paris, Hong Kong and Los Angeles complete the top five.
According to The Wealth Report Attitudes Survey, 80% of UHNWIs are dedicating more time and money into their wellbeing. However, there is a growing focus on wellness as a measure of national performance. Oslo tops topped the bill, followed by Zurich and Helsinki tied in second place.
Superyachts and private jets are staples of luxury travel but as concerns over the climate grows, questions are being raised about their impact on the environment. William Mathieson, Intelligence Director of The Superyacht Group and Thomas Flohr, Founder and Chairman of Vistajet share their views and insights on how their business are working to become more sustainable.
The latest results of the Prime International Residential Index (PIRI) showed that only 22% of the 100 prime residential locations we tracked saw average prices fall last year. Cities outperformed the second homes market with Frankfurt (+10%) at the top of the list.
The US remains the top destination for Asian buyers according to The Attitudes Survey. Driving this attraction is a combination of tax reductions, rate cuts and an increase in annual price growth.
In this edition, we also look at the emerging trends in residential property development and wellness. Some of the trends discussed include creating private boreholes, services used to monitor air quality control and creating a sense of community in developments.
Above: Sentosa, Singapore.
Knight Frank’s global team of residential property experts have selected 40 neighbourhoods that they have identified as prime property hotspots for 2020. Included on the list this year is Amizmiz in Marrakech, Sentosa in Singapore and Maida Vale in London.
This year, philanthropy takes centre stage as the ultimate passion investment and concern for the planet is continuing to drive UHNWI endeavours. The Wealth Report features three pioneering philanthropists – Jason Flom, Sugianto Kusma and Anders Holch Povlsen – whose investments of passions are promoting the wellbeing of individuals, society and the wider world.
The Wealth Report delves into the world of luxury investments including designer handbags with collector Julia Kovalijova, and we share the top tips of striking it rich at auction.
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