Bricks and mortar top of the shopping list for world’s wealthiest, new reports reveal
The impact of high net worth individuals on global property markets has long been recognised, but now two newly released reports have thrown the figures into sharp focus. According to the annual Knight Frank Wealth Report, the number of ultra-high net worth individuals across the world rose by 3% during 2013. The increase means the number of people with more than US$30m in assets has now reached over 167,000.
- 59% increase in ultra-high net worth individuals since 2003 (Knight Frank)
- Russia is now home to 111 billionaires (Forbes)
- €42m home in Notting Hill attracting particular attention from Russian buyers (Idinaidi)
The astonishing figure represents an increase of 59% in the past decade, while the same report predicts a further increase of 28% in the decade ahead. It seems the world – or the top 1% of it, at least – is getting richer.
The latest annual ranking of global billionaires from Forbes certainly concurs. According to Forbes there are now a record 1,645 billionaires. To make it into the top 20 ranking, an individual now needs some $31bn in his pocket, compared to a measly $23bn last year – a significant jump in just 12 months. The US boasts the most billionaires (492), while Russia came in third, with 111 individuals making the cut for the 2014 list.
The result has been an increased number of Russians eyeing up property overseas. While New York and Paris are popular choices, London remains the firm favourite with Russian buyers, with Knight Frank identifying them as the biggest foreign buyers of homes valued at over £1m in the capital during 2013. In total, Russian buyers spent more than £500m in London over the course of the year.
It’s not just wealthy Russians who are looking to London either – Knight Frank’s 2014 Global City Survey confirmed the English capital as the most popular city on the planet with wealthy buyers during 2013. Residential property was identified as the biggest item of discretionary spending for ultra-high net worth individuals, with almost 30% of their wealth accounted for by their main home and any second homes.
In fact, nearly one third of ultra-high net worth individuals living in Russia are looking to purchase a new home in 2014, while 37% are considering permanently changing their domicile or country of residence.
The UK is considered the top destination for those seeking a new domicile and when it comes to locations, Knight Frank’s Prime International Residential Index recognised London as the third most expensive property market in the world, with $1m getting buyers a mere 25 square metres of space. Russians considering buying in London can compare this with what they can get in Moscow, which ranked as the ninth most expensive market and where the same amount will result in 43 square metres.
Industry expert Carlo Walther, COO of Russia’s fastest-growing property portal, Idinaidi, comments on the recent developments,
“London has long been a popular choice with Russian buyers. Over 80% of the searches for UK real estate on Idinaidi are for London properties. Though Russians can get more for their money in Moscow – and the recently listed$82,000 per month Moscow apartment has certainly attracted considerable attention – luxury London apartments and houses remain top of their list of aspirations when it comes to owning homes overseas.
“Belgravia, Kensington and Chelsea are three of Russian buyers’ favourite areas of London. In fact, the most viewed overseas property on Idinaidi in London 2013 was a one bedroom apartment, overlooking the River Thames, for a price of €1m.”
For more information visit Idinaidi at www.idinaidi.ru.