The planet had almost 200,000 ultra-high-net worth people this past year, according to the agent’s wealth study, with more than two-thirds of these across Asia, Europe and North America. Europe is the largest regional center for this population globally, although the surge among Asian economies means that the world is going to have more than 20 million people worth at least $1 million for the first time this year. Even though the U.S. is the world’s biggest economy, New York is its only city in the real estate broker’s top 10. Rarity and provenance also drove earnings of artwork and classic cars to new highs in 2018. Highlights range from the $48 million auction of a 1962 Ferrari 250 GTO and the $90.3 million bid to get a David Hockney painting, the most paid at auction for a work by a living artist.
According to The Wealth Report 2019, rare whisky and cars are at the top of a 10 years value change study on luxury investments. (Knight Frank)
“Direct flights between Edinburgh and Beijing point to the increase of whisky within an asset class,” Bailey said in reference to routes introduced this past year from China’s Hainan Airlines. “
There’s still a desire for wealthy individuals to dedicate a part of their portfolios into real products.” The data highlight the concentration of this ultra-wealthy residing in the biggest metropolises. Business opportunities, lifestyle needs, hospitals and transportation infrastructure are all factors that draw on the super-rich to splash out in homes in large cities.
Despite Brexit, that is particularly true with London- the U.K.’s political and financial center, and the planet’s greatest wealth hub – in which overseas property buyers have faced criticism for pushing up prices. London’s richest comprise members of this billionaire Rausing family, who have packaging company Tetra Laval, and Chelsea community landowner Charles Cadogan. With their private jets and multiple homes, the world’s mega-rich would be the greatest globetrotters.
Watch the national breakdown: With U.K. lures the planet’s wealthiest Asia’s economic development has made it the largest source of new billionaires and fostered luxury investments worldwide . This past year, China and Hong Kong buyers accounted for about a quarter of purchases in London houses worth at least 2 million pounds ($2.6 million), according to Knight Frank, almost doubling from two decades before. The area’s wealthy also boosted demand for luxury collectibles, helping push the broker’s Rare Whisky 100 Index up 40 per cent last year.
Yet about half of this elite population have their main residences within a group of just 10 cities, according to Knight Frank’s 2019 Wealth Report, which lists London, Tokyo and Singapore as home to the most people worth at least $30 million. While the U.S. is the world’s largest economy, New York is its only city in the real estate brokerage’s top 10. Despite the uncertainty of the last few years, London is where the richest live, with the highest concentration of extreme wealth, being home to 4,944 of the ultra-wealthy.
“London has a very distinctive proposal,” said Liam Bailey, Knight Frank’s global head of residential research. “There is no other city that contrasts as a global hub for so many distinct sectors.”