According to a new report by Wealth-X and the Sotheby’s International Realty® brand, ultra-wealthy individuals are purchasing luxury homes around the world to further diversify their holdings. The report, which focuses on Europe, the Middle East and Africa, provides insight into the “EMEA” region’s luxury residential real estate market. The study hones in on the market for the 211,275-person strong global community of ultra high net worth (UHNW) individuals, who collectively own nearly US $3 trillion in real estate. The report identifies purchasing and investment opportunities for those of UHNW, who are defined as individuals with over US $30 million in assets.
The Europe, Middle East and Africa Luxury Residential Real Estate Report For 2015 shows that its UHNW Residential Real Estate Index hit a new record high in the first quarter of 2015. This record high is indicative of the strength of the global luxury real estate sector. The index takes into account the full range of luxury residential properties owned by the world’s wealthiest individuals.
While London remains the top real estate hub for the EMEA region, holding one-third of its premium properties worth more than $10 million dollars, the report suggests that the cities of Madrid, Dubai and Cape Town are highly appealing as well. These areas offer various purchasing and investment opportunities, luxury properties and strong lifestyle considerations that are predicted to garner serious interest from UHNW buyers.
According to Philip White, President and Chief Executive Officer of Sotheby’s International Realty Affiliates LLC, this joint report was designed to provide a deeper understanding of the UHNW consumer, specifically in the EMEA region. “The research shows that trends and the economic climate in some EMEA countries are stimulating alternative investments such as real estate in these local markets,” he said. “These opportunities are exciting and we are proud to be able to provide an in-depth look at them.”
Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this second luxury real estate report for 2015. Because it touches upon several key elements in an ultra affluent individual’s life, including lifestyle, investments and family, luxury residential real estate encapsulates a core part of their identity. As their wealth continues to grow, so will their investments, fueled by flight to safety from less geopolitically stable geographies.”