Knight Frank Wealth Report 2024: 626,000 UHNW Population in 2023, $12.8 Million Wealth to be Top 1% in Monaco, $5.2 Million in Singapore & $3 Million in Hong Kong, Top 5 Locations to Buy New Homes are United Kingdom, United States, France, Australia & UAE, Top 5 Preferred Commercial Real Estate Sector in 2024 are Living Sectors, Healthcare, Education, Development Land & Data Centres
15th March 2024 | Hong Kong
Knight Frank has released the Knight Frank Wealth Report 2024, providing key insights on global real estate, residential & commercial properties & UHNW investment preferences. In 2023, the global UHNW population (Ultra high net worth) is around 626,000 (North America 253,000, Asia 165,000, Europe 155,000, Middle East 18,700, Australasia 17,900, Latin America 13,100, Africa 2,900). The Top 3 UHNW Population in 2023 are United States 225,000, China Mainland 98,000, Germany 29,000, and the Top 10 are United States, Chinese Mainland, Germany, Canada, France, United Kingdom, Japan, Italy, Australia, India. Wealth required to be in Top 1% in countries (Top 5) – Monaco $12.8 million, Luxembourg $10.8 million, Switzerland $8.5 million, United States $5.8 million, Singapore $5.2 million. No. of homes ownership – 3.72 properties. Wealth allocated to primary & secondary homes – 29%. Residential portfolios located outside country of residence – 27%. Top 3 City, Sun & Ski locations Price Increase in 2023 – Manila +26.3%, Dubai +15.9%, Bahamas: +15%. 5 Most Expensive City Location – Square metre (sqm) per $1 million – Monaco 16 sqm, Hong Kong 22 sqm, Singapore 32 sqm, London 33 sqm, Geneva 34 sqm. Top 5 Locations to buy new Homes – United Kingdom, United States, France, Australia, UAE. Top 5 Preferred Commercial Real Estate by Sector in 2024 – Living sectors, Healthcare, Education, Development land, Data centres. Total Investment in Commercial Real Estate in 2023 – Private Companies $337 billion, Institutional Investors $221 billion, Public Investors $73 billion, Other $65 billion. Top 5 Commercial Real Estate Investment Country Allocation in 2023 – United States, United Kingdom, Canada, Germany, Japan. Top 5 Commercial Real Estate Investment Cities Allocation in 2023 – London, Singapore, Toronto, New York, Paris. Top 5 Source of Investors (Origin) in 2023 – United States, Singapore, Canada, Hong Kong SAR, Japan. Top 5 Most Popular Investments of Passion – Art, Watches, Classic cars, Wine, Jewellery. Top 5 Luxury Investment Price Change (10 Years) – Rare whisky +280%, Wine +146%, Watches +138%, Art +105%, Classic cars +82%. See below for key findings & summary | View report here
“ 626,000 UHNW Population in 2023, $12.8 Million Wealth to be Top 1% in Monaco, $5.2 Million in Singapore & $3 Million in Hong Kong, Top 5 Locations to Buy New Homes are United Kingdom, United States, France, Australia & UAE, Top 5 Preferred Commercial Real Estate Sector in 2024 are Living Sectors, Healthcare, Education, Development Land & Data Centres “
Knight Frank Wealth Report 2024
Knight Frank has released the Knight Frank Wealth Report 2024, providing key insights on global real estate, residential & commercial properties & UHNW investment preferences.
Definition:
- HNWI (High-net-worth individual) – More than $1 million net worth
- UHNWI (Ultra-high-net-worth individual) – More than $30 million net worth
- Prime Property – The most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value. Prime markets often have a significant international bias in terms of buyer profile.
Knight Frank Wealth Report 2024
Summary
- 2024 Real Estate Outlook – Politics, Auckland (New Zealand) leads prime location price forecast increase, Sydney leads price increase forecast for rents, Stock levels will be the key determinant of price and rental performance, with rate cuts, taxes and red tape influencing factors.
- Top 3 Opportunities – Relaxation of tax and property regulations, Property’s appeal as a means to diversify / spread risk, Safe haven capital flight
Top 3 Risks – Election resulting in policy change / higher taxes, Climate risk, Undersupply of luxury homes - 5 Themes Shaping Prime Real Estate – Policy, AI (Artificial Intelligence), Currency, Climate, Wellness
- Wealth required to be in Top 1% in countries (Top 5) – Monaco $12.8 million, Luxembourg $10.8 million, Switzerland $8.5 million, United States $5.8 million, Singapore $5.2 million
- Global UHNW Population in 2023 – 626,619
- UHNW Population 2023 by Region – North America 253,000, Asia 165,000, Europe 155,000, Middle East 18,700, Australasia 17,900, Latin America 13,100, Africa 2,900
- Top 3 UHNW Population 2023 – United States 225,000, China Mainland 98,000, Germany 29,000
- Top 10 UHNW Population 2023 – United States, Chinese Mainland, Germany, Canada, France, United Kingdom, Japan, Italy, Australia, India
On Real Estate
- Wealth allocated to primary & secondary homes – 29%
- Residential portfolios located outside country of residence – 27%
- No. of homes ownership – 3.72 properties
- Top 3 reasons to buy next Residential Properties – Job re-location, Tax, Education
- Clients invested directly in Commercial Properties in 2023 – 20%
- Clients planning to invest directly in Commercial Properties in 2024 – 19%
- Percentage of clients planning to apply for 2nd Passport or new Citizenship in 2024 – 19% (Asia: 13%)
- Top 3 City, Sun & Ski locations Price Increase in 2023 – Manila +26.3%, Dubai +15.9%, Bahamas: +15%
- 5 Most Expensive City Location – Square metre (sqm) per $1 million – Monaco 16 sqm, Hong Kong 22 sqm, Singapore 32 sqm, London 33 sqm, Geneva 34 sqm
- Top 5 Locations to buy new Homes – United Kingdom, United States, France, Australia, UAE
- Top 5 Preferred Commercial Real Estate by Sector in 2024 – Living sectors, Healthcare, Education, Development land, Data centres
- Total Investment in Commercial Real Estate in 2023 – Private Companies $337 billion, Institutional Investors $221 billion, Public Investors $73 billion, Other $65 billion
- Top Commercial Real Estate Investment by Sector in 2023 (All investors) – Industrial & Logistics, Living, Office, Retail, Hotel, Seniors housing & care
- Top 5 Commercial Real Estate Investment Country Allocation in 2023 – United States, United Kingdom, Canada, Germany, Japan
- Top 5 Commercial Real Estate Investment Cities Allocation in 2023 – London, Singapore, Toronto, New York, Paris
- Top 5 Source of Investors (Origin) in 2023 – United States, Singapore, Canada, Hong Kong SAR, Japan
- Top 5 Most Popular Investments of Passion – Art, Watches, Classic cars, Wine, Jewellery
- Top 3 Reasons for Investments of Passion – Intellectual interest, To belong to a community, Status among peers
- Investment portfolio allocated to luxury investments – 20%
- Top 5 Luxury Investment Price Change (10 Years) – Rare whisky +280%, Wine +146%, Watches +138%, Art +105%, Classic cars +82%
- Top 3 Actions by clients to reduce Carbon Emissions – Reduce their personal carbon footprint 65%, Switch to electric vehicles 40%, Improve energy efficiency of their homes 34%
- Top Clients ESG strategies when investing in Commercial Properties – Only invest in the most sustainable / prime assets, Invest in renewable energy projects, Sell poor ESG-performing assets
Knight Frank Wealth Report 2024
1) Real Estate Outlook
2024 Real Estate Outlook:
- Politics will usurp economics as the major downside risk for property markets in 2024.
- Auckland (New Zealand) leads our prime price forecast, while Sydney leads for rents.
- Stock levels will be the key determinant of price and rental performance, with rate cuts, taxes and red tape influencing factors.
Top 3 Opportunities:
- Relaxation of tax and property regulations
- Property’s appeal as a means to diversify / spread risk
- Safe haven capital flight
Top 3 Risks:
- Election resulting in policy change / higher taxes
- Climate risk
- Undersupply of luxury homes
5 Themes Shaping Real Estate in 2024:
- Global growth will slow, but geopolitics will support critical sectors
- Rates will fall, just not as much as investors hope
- Liquidity will improve in 2024
- AI investment will drive real estate requirements
- Climate change will impact property values, but also presents new prospects
5 Themes Shaping Prime Real Estate:
- Policy
- AI (Artificial Intelligence)
- Currency
- Climate
- Wellness
2) Wealth required to be in Top 1% in Countries
Wealth to be in Top 1% in Country (Selected)
- Monaco – $12.8 million
- Luxembourg – $10.8 million
- Switzerland – $8.5 million
- United States – $5.8 million
- Singapore – $5.2 million
- Sweden – $4.7 million
- Australia – $4.6 million
- New Zealand – $4.5 million
- Ireland – $4.3 million
- Germany – $3.4 million
- France – $3.4 million
- Hong Kong SAR – $3 million
- United Kingdom – $3 million
- Italy – $2.5 million
- Spain – $2.4 million
- Japan – $1.9 million
- Chinese Mainland – $1 million
3) UHNW Population
Global UHNW Population
- 2022 – 601,300
- 2023 – 626,619
- 2028 – 802,891
Most UHNW Population 2023 by Region:
- North America – 253,000
- Asia – 165,000
- Europe – 155,000
- Middle East – 18,700
- Australasia – 17,900
- Latin America – 13,100
- Africa – 2,900
- Total – 626,000
UHNW Population Change 2023 by Region (vs 2022):
- Asia: +2.6%
- Australasia: +2.9%
- Europe: +1.8%
- Middle East: +6.2%
- Africa: +3.8%
- North America: +7.2%
- Latin America: -3.6%
- Total: +4.2%
Expected Wealth change of HNWI in 2024:
- Increase more than 10% – 21.1%
- Increase by less than 10% – 50.3%
- Remain the same – 22.5%
- Decrease by less than 10% – 5.6%
- Decrease more than 10% – 0.4%
Profile of HNWIs who expect wealth to increase in 2024:
- Global – 65%
- Boomer (1946 to 1964, Age 60 to 78) – 52%
- Gen X (1965 to 1980, Age 44 to 59) – 56%
- Millennials (1981 to 1996, Age Age 28 to 43) – 69%
- Gen Z (1997 to 2012, Age 12 to 27) – 75%
Top 30 UHNW Population 2023 by Country:
- United States – 225,000
- China Mainland – 98,000
- Germany – 29,000
- Canada – 27,000
- France – 24,000
- United Kingdom – 23,000
- Japan – 21,000
- Italy – 15,000
- Australia – 15,000
- India – 13,000
- Spain – 10,000
- Switzerland – 14,000
- Netherlands – 8,300
- Taiwan – 7,600
- South Korea – 7,300
- Hong Kong SAR – 5,900
- Singapore – 4,700
- Sweden – 4,100
- New Zealand – 2,500
- Norway – 2,200
- Austria – 2,100
- Turkey – 1,900
- Ireland – 1,800
- Indonesia – 1,400
- Finland – 1,200
- Thailand – 800
- South Africa – 800
- Portugal – 800
- Malaysia – 700
- Vietnam – 700
4) Property investment insights
On investing in Residential Properties:
- Wealth allocated to primary & secondary homes – 29%
- Residential portfolios located outside country of residence – 27%
- Clients bought a home in 2023 – 24%
- Clients planning to buy a home in 2024 – 22%
- Clients rent out their second homes – 33%
- No. of homes ownership – 3.72 properties
Top reasons to buy next Residential Properties:
- Job re-location – 6
- Tax – 5
- Education – 4
- Lifestyle – 3
- Safehaven – 2
- Investment – 1
Clients invested directly in Commercial Properties in 2023:
- Global Average – 20%
- Asia – 19%
- Australasia – 21%
- Europe – 18%
- Middle East – 24%
- Africa – 11%
- North America – 21%
- Latin America – 17%
Clients planning to invest directly in Commercial Properties in 2024:
- Global Average – 19%
- Asia – 21%
- Australasia – 17%
- Europe – 17%
- Middle East – 23%
- Africa – 13%
- North America – 19%
- Latin America – 15%
Reasons to invest in Farmland:
- Food production – 49%
- Environmental benefits – 41%
- Safe-haven investment – 38%
- Lifestyle opportunities – 37%
- Tax planning – 35%
- Income from carbon credits – 30%
- Planting trees – 25%
Percentage of clients planning to apply for 2nd Passport or new Citizenship in 2024:
- Global Average – 19%
- Asia – 13%
- Australasia – 4%
- Europe – 13%
- Middle East – 5%
- Africa – 38%
- North America – 26%
- Latin America – 43%
5) Investment in Residential / Homes
Top 10 Locations to buy new homes:
- United Kingdom – 17.7%
- United States – 9.8%
- France – 7.2%
- Australia – 5.6%
- UAE – 5.4%
- Switzerland – 5.4%
- Spain – 4.5%
- Italy – 4%
- Portugal – 3.8%
- India – 3.5%
Top 10 City, Sun & Ski locations Price Increase in 2023:
- Manila: +26.3%
- Dubai: +15.9%
- Bahamas: +15%
- Algarve: +12.3%
- Cape Town: +12.3%
- Athens: +12%
- Ibiza: +12%
- Mumbai: +10%
- Shanghai: +8.6%
- Mustique / St Barts (2 Locations): +10%
Most Expensive City Location – Square metre (sqm) per $1 million (What $1 million can buy):
- Monaco – 16 sqm
- Hong Kong – 22 sqm
- Singapore – 32 sqm
- London – 33 sqm
- Geneva – 34 sqm
- New York – 34 sqm
- Los Angeles – 38 sqm
- Paris – 40 sqm
- Shanghai – 42 sqm
- Sydney – 43 sqm
- Miami – 60 sqm
- Tokyo – 64 sqm
- Dubai – 91 sqm
- Madrid – 96 sqm
- Mumbai – 103 sqm
Most Expensive 2nd Home Location – Square metre (sqm) per $1 million (What $1 million can buy):
- Aspen – 20 sqm
- Verbier – 28 sqm
- St Tropez – 32 sqm
- Ibiza – 50 sqm
- Bahamas – 62 sqm
- Chamonix – 63 sqm
- Quinta Do Lago – 67 sqm
- Lake Como – 91 sqm
- Marbella – 101 sqm
- Barcelona – 110 sqm
- Gold Coast – 112 sqm
- Provence – 129 sqm
- Barbados – 143 sqm
- Cape Town – 196 sqm
- Phuket – 213 sqm
Selected Locations Price in 2023:
APAC:
- Shanghai: +8.6%
- Beijing: +3.3%
- Shenzhen: +5.4%
- Guangzhou: +1.6%
- Taipei: +2.6%
- Seoul: +6.2%
- Hong Kong: -2.1%
- Singapore: +2.9%
- Delhi: +4.2%
- Mumbai: +10%
- Bangkok: -1.8%
- Kuala Lumpur: +0.2%
- Jakarta: +0.6%
- Manila: +26.3%
Oceania:
- Sydney: +2.7%
- Melbourne: +1.4%
- Brisbane: +2.3%
- Gold Coast: +4.1%
- Perth: +5.2%
- Wellington: +1.1%
Europe & Middle East:
- London: –2.1%
- The Hamptons: -2.7%
- Oxford: -8.4%
- Monaco: +0.6%
- Zurich: -2.4%
- Geneva: -1.3%
- Venice: +2.5%
- Paris: +2.5%
- Cannes: -7%
- Barcelona: +2.7%
- Madrid: +6.4%
- Amsterdam: -5.6%
- Dubai: +15.9%
America:
- New York: -2%
- San Francisco: +0.5%
- Los Angeles: +2.5%
- Orange County: +5%
- Miami: +6.5%
- Hawaii: +4%
- Bahamas: +15%
- Toronto: -1%
- Vancouver: +6.7%
Global Property Regulatory Changes:
- Canada – A two-year foreign buyer ban due to end on January 1 2025
has been extended to 2027. Permanent residents and some temporary workers
are exempt, along with some rural and “recreational” property. - New York – In September 2023, a de facto ban on short-term lets came into effect. Partial home stays of less than 30 days remain permissible, if the property is registered with the Mayor’s Office and the host present throughout.
- United Kingdom – A Labour Party victory in the UK general election is expected to end the non-dom tax regime, increase stamp duty for overseas buyers and potentially lead to changes to inheritance tax rules.
- France – From 2025, properties rated G for energy efficiency can no longer be let. Since August 2022, rents for F- and G-rated properties cannot be increased. The rules do not apply to furnished holiday lets.
- Hong Kong SAR – Since 28 February 2024, non- permanent residents pay the same stamp duty as resident buyers, up to 4.25%. Sellers can dispose their assets anytime without paying an extra 10% stamp duty.
- Portugal – The Non-Habitual Residency initiative, with lower tax rates for non-residents, was due to end in 2023 but has been extended for applicants who can prove their move was planned prior to December 2023.
- United Arab Emirates – UAE has reintroduced the three-month or 90-day visit visa, which can be extended within the country for an additional cost.
- China Mainland – New housing policies across first-tier cities include lowering the downpayment ratio for first-time and second-home purchasers and extending the maximum mortgage term to 30 years.
- Australia – Fees for foreigners allowed to buy existing houses will be tripled, and taxes for foreigners who leave dwellings vacant doubled. Plus, January saw the country’s “golden visa” scheme halted.
- New Zealand – Mortgage interest can once again be deducted from rental income for tax purposes and investors now need to hold a property for two years rather than 10 to avoid paying capital gains tax.
6) Investment in Commercial Real Estate
Most Preferred Commercial Real Estate by Sector in 2024:
- Living sectors – 14%
- Healthcare – 13%
- Education – 11%
- Development land – 10%
- Data centres – 9%
- Industrial & logistics – 8%
- Hotels & leisure – 7%
- Farmland – 6%
- Life sciences – 5%
- Offices – 5%
- Forestry – 4%
- Real estate debt – 4%
- Retail – 3%
Living sectors (14%) Breakdown:
- Residential private rented sector – 8%
- Seniors housing – 3%
- Student housing – 3%
Total Investment in Commercial Real Estate in 2023:
- Private Companies – $337 billion
- Institutional Investors – $221 billion
- Public Investors – $73 billion
- Other – $65 billion
Top 10 Commercial Real Estate Investment by Sector in 2023 (All investors):
- Industrial & Logistics – $174 billion
- Living – $167 billion
- Office – $152 billion
- Retail – $129 billion
- Hotel – $55 billion
- Seniors housing & care – $18 billion
Top 10 Commercial Real Estate Investment by Sector in 2023 (Private investors):
- Living – $100 billion
- Industrial & Logistics – $70 billion
- Office – $66 billion
- Retail – $59 billion
- Hotel – $30 billion
- Seniors housing & care – $10 billion
Top 10 Commercial Real Estate Investment Country Allocation in 2023 (All investors):
- United States – 29.6%
- United Kingdom – 20.3%
- Canada – 9.7%
- Germany – 9.6%
- Japan – 8.7%
- China Mainland – 6%
- Australia – 5.7%
- Spain – 5.7%
- France – 5.3%
- Singapore – 5.1%
Top 10 Commercial Real Estate Investment Cities Allocation in 2023 (All investors):
- London – 7.6%
- Singapore – 5.1%
- Toronto – 5%
- New York – 4.8%
- Paris – 4.1%
- Berlin – 3%
- Tokyo – 2.5%
- Los Angeles – 2.3%
- Melbourne – 2.2%
- Sydney – 2.1%
Top 10 Source of Investors (Origin) in 2023:
- United States – 32.3%
- Singapore – 26.3%
- Canada – 11%
- Hong Kong SAR – 8.7%
- Japan – 8%
- France – 7%
- Germany – 6.5%
- United Kingdom – 5.2%
- Switzerland – 4.7%
- UAE – 4.4%
7) Luxury & Passion Investments
Top 10 Most Popular Investments of Passion:
- Art – 48%
- Watches – 42%
- Classic cars – 38%
- Wine – 35%
- Jewellery – 28%
- Rare whisky – 26%
- Luxury handbags – 22%
- Coins – 15%
- Coloured diamonds – 14%
- Furniture – 13%
Top Reasons for Investments of Passion:
- Intellectual interest – 5
- To belong to a community – 4
- Status among peers – 3
- Investment – 2
- The joy of ownership – 1
Investment portfolio allocated to luxury investments:
- Asia – 21%
- Australasia – 18%
- Europe – 18%
- Middle East – 23%
- Africa – 17%
- North America – 20%
- Latin America – 23%
- Global Average – 20%
Luxury Investment Price Change (10 Years):
- Rare whisky: +280%
- Wine: +146%
- Watches: +138%
- Art: +105%
- Classic cars: +82%
- Luxury handbags: +67%
- Coins: +56%
- Furniture: +40%
- Jewellery: +37%
- Coloured diamonds: +8%
8) ESG, Carbon Emissions
Top Actions by clients to reduce Carbon Emissions:
- Attempting to reduce their personal carbon footprint – 65%
- Switch to electric vehicles – 40%
- Improving the energy efficiency of their homes – 34%
- Improving the energy efficiency of their investment property – 34%
- Reducing the carbon footprint of business operations – 30%
- ESG screening of investments – 24%
- Investing in nature-based solutions – 21%
- Attempting to measure carbon usage – 20%
- Owning fewer homes – 14%
- Reducing private jet travel (where applicable) – 14%
- Reducing air travel – 10%
- Reducing personal vehicle ownership – 10%
Top Clients ESG strategies when investing in Commercial Properties:
- Only invest in the most sustainable / prime assets – 29%
- Invest in renewable energy projects – 27%
- Sell poor ESG-performing assets – 23%
- Acquire and upgrade assets with weak ESG credentials – 21%
- Acquire and reposition (change of use) assets with weak ESG credentials – 20%
- Invest in carbon sequestration opportunities through land acquisition – 19%
Top ESG-related criteria use to assess Property Acquisitions:
- Energy efficiency rating (e.g. EPC) – 61%
- Renewable power source (e.g. solar panels) – 48%
- Green / sustainable certifications (e.g. BREEAM, LEED, DGNB, Green Mark, NABERS) – 46%
- EV charging points – 39%
- Impact on nature and biodiversity (e.g. green roofs/space) – 32%
- Impact on wider community (e.g. community facilities, open space/cafés) – 26%
- Amenity-rich assets (e.g. cycle facilities, wellbeing space) – 25%
Knight Frank Wealth Report
Compiled by research teams around the world, The Wealth Report is Knight Frank’s flagship thought-leadership publication. Now in its 18th edition, the report has become a highly anticipated document that is considered vital reading for UHNWIs across the globe and their advisors. Highlighting the issues that matter to UHNWIs, The Wealth Report is the ultimate guide to prime property markets, global wealth distribution, the threats and opportunities for wealth, commercial property investment opportunities, philanthropy and luxury spending trends.
Methodologies
Taking established wealth estimation models (Davies et al. (2017) as our starting point, we have estimated levels of net wealth on a location-by-location basis using balance sheet data, where available, on households’ financial and non-financial wealth. Where data was not available, estimates were generated using econometric techniques. Utilising estimated Gini coefficients, we then drew the wealth distribution curve for each location, calibrating this with our own data as well as other industry standard sources. This allows us to estimate the number of individuals in each location in the following wealth bands:
- HNWIs – those with net wealth of US$1 million or more
- UHNWIs – those with net wealth of US$30 million or more, and
- Billionaires – those with net wealth of US$1 billion or more.
When talking about net wealth, we now include primary residences and second homes not owned primarily as investments, as this gives a more accurate representation of total wealth. Individuals pass wealth on via the places they live and borrow against them to fund their investments. In addition, when house prices are rising consumers can experience a positive wealth effect, supporting higher levels of consumption, and – of course – vice versa. We then forecast using a number of metrics including GDP per capita, life expectancy, government consumption and political risk, as these are proven significant variables for such calculations.
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