What are the trends shaping the decisions of the world’s wealthy? Where are the best performing luxury real estate markets? And where should you keep an eye fixed for growth? The Wealth Report, now in its 13th year, addresses these questions and more by tracking the world’s wealthiest people to determine how their behaviors influence markets, from real estate to art to whiskey, around the globe. Below we have gathered some of the stand out facts from this year’s Report.
Global Wealth Trends
1) In 2019, the number of millionaires worldwide will exceed 20 million for the first time ever.
2) New York leads all cities with 94 billionaires. London is a close second.
3) There are 200,000 UHNWIs (ultra-high net-worth individuals with $30M+ in net worth) worldwide, following 4% growth in 2018.
4) London has the world’s largest UHNWI population with 4,944, an increase of 582 over the last five years 36% of UHNWIs already hold a second passport, with 26% planning to emigrate.
5) Existing UHNWIs expect their wealth to increase over the next 12 months, with confidence most marked in the US where 80% expect to be better off.
6) New York’s Teterboro Airport is the world’s busiest private aviation hub with 66,968 private jets leaving in 2018.
Property Market Update
8) The next 12 months will see a shift in performance of global property markets, as purchasers and investors respond to greater uncertainty in the global economy, a proliferation of market regulation and the rising cost of debt.
9) In 2018, the PIRI 100 recorded its lowest rate of annual growth in six years: +1.3%.
10) The US remains the world’s most mature multihousing market—but Europe is gaining ground.
11) Madrid, Berlin, Paris and Cape Town top our 2019 prime residential growth forecast
12) UHNWI residential real estate choices are increasingly driven by the search for stability.
13) Boston’s Seaport District, Delray Beach, Florida and LA’s Pasadena all made The Wealth Report’s list of residential hot spots to keep an eye on in 2019.
14) Private investors spent $289 billion on commercial property in 2018. Of that, $178 billion was spent in the US.
Investments of Passion
15) Whiskey stormed to the top of our Investment Index in 2018 with 40% annual growth, achieving almost unimaginable new auction highs.
16) Blockchain provides an easily consultable public record for unique collectibles. This record is very interesting, especially from an investment perspective.
17) The index for rare classic cars rose almost 2.5% in 2018. However not every marque recorded an increase. Porsche, for example, fell on average 6.5%.
18) In terms of diamond color, blue diamonds were the top performers in 2018, with yellow values weakening slightly and pinks remaining stable.
19) On a longer-term view, wine collectors will want to continue to buy into those young and upcoming Burgundy and Piedmont producers who have the best-located vineyards.
20) In New York, Christie’s $833 million spring sale of 1,500 objects belonging to the Rockefeller estate was the highest auction total ever for a single collection.