In this article, we will explore some facts and figures about the ultra-wealthy people, such as how many they are, where they live, how they invest, and how they spend.
Ultra wealthy people are those who have a net worth of at least $30 million, according to one common definition. They are the richest people in the world, who control a large amount of global wealth and influence. They are often self-made entrepreneurs, business leaders, investors, or inheritors of family fortunes. They live in different countries, regions, and cities, but tend to cluster in certain places that offer them economic opportunities, cultural attractions, and security.
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How Many Ultra Wealthy People Are There?
According to the Credit Suisse Global Wealth Report 2022, there were 218,200 ultra-high net worth individuals (UHNWIs) in the world in 2021, an increase of 46,000 from the previous year2. This group of people represented 0.003% of the global adult population but held 11.7% of the global wealth.
The majority of the ultra-wealthy people (53%) lived in the United States, followed by China (9.6%), Germany (4.5%), Canada (2.8%), and India (2.4%)2. The report also projected that the number of UHNWIs would grow by 85% to 744,812 by 2027, with the fastest growth rates in Hungary, Turkey, and China.
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Where Do Ultra Wealthy People Live?
The ultra-wealthy people tend to live in major cities that offer them access to business opportunities, cultural amenities, and high-quality services. According to the Knight Frank Wealth Report 2023, the top 10 cities with the most UHNWIs in 2022 were New York, Tokyo, London, Paris, Hong Kong, Los Angeles, Beijing, Shanghai, Singapore, and Mumbai.
These cities accounted for 22.7% of the global UHNWI population. The report also ranked the cities based on their attractiveness to the ultra-wealthy people, considering factors such as lifestyle, investment, education, healthcare, and security. The top 10 cities in this ranking were London, New York, Paris, Hong Kong, Singapore, Tokyo, Los Angeles, Sydney, Zurich, and Dubai.
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How Do Ultra Wealthy People Invest?
The ultra wealthy people have diverse and sophisticated portfolios that reflect their risk appetite, return expectations, and personal preferences. According to the Wealth-X Billionaire Census 2022, the average asset allocation of the worldโs billionaires in 2021 was 36% in equities, 24% in private holdings, 15% in cash and cash equivalents, 10% in real estate, 9% in alternative investments, and 6% in other assets.
The report also noted that the ultra wealthy people increased their exposure to equities and alternative investments, such as hedge funds, private equity, venture capital, and cryptocurrencies, amid the market recovery and innovation opportunities in 2021.
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How Do Ultra Wealthy People Spend?
The ultra-wealthy people have a high level of consumption and expenditure, both for their personal and professional needs. They spend on various categories, such as luxury goods, travel, education, philanthropy, art, and entertainment.
According to the Wealth-X Billionaire Census 2022, the average annual spending of the worldโs billionaires in 2021 was $117 million, or 1.4% of their net worth. The report also estimated that the total spending of the worldโs billionaires in 2021 was $1.4 trillion, or 1.1% of the global GDP.
Some of the most popular spending categories for the ultra wealthy people were:
Luxury goods: The ultra wealthy people are avid consumers of high-end products, such as jewelry, watches, fashion, cars, yachts, and private jets. According to Bain & Company, the global personal luxury goods market grew by 14% to โฌ281 billion in 2021, driven by the strong demand from China and the online channel.
Travel: The ultra wealthy people are frequent travelers, both for business and leisure. They prefer to stay in luxury hotels, resorts, and villas, and use private aviation services.
According to the Knight Frank Wealth Report 2023, the top 10 destinations for ultra-wealthy travelers in 2022 were the Maldives, France, Switzerland, Italy, the United States, the United Kingdom, Australia, Japan, Thailand, and Spain.
Education: The ultra wealthy people value education highly, both for themselves and their children. They often send their children to prestigious schools, colleges, and universities, both in their home countries and abroad.
According to the Knight Frank Wealth Report 2023, the top 10 countries for ultra-wealthy education seekers in 2022 were the United States, the United Kingdom, Canada, Australia, Switzerland, France, Germany, Singapore, China, and Hong Kong.
Philanthropy: The ultra-wealthy people are generous donors to various causes, such as health, education, environment, arts, and social justice. They often establish their own foundations, trusts, or initiatives, or join existing ones, to support their philanthropic goals.
According to the Wealth-X Billionaire Census 2022, the average annual giving of the worldโs billionaires in 2021 was $25 million, or 0.3% of their net worth. The report also estimated that the total giving of the worldโs billionaires in 2021 was $303 billion, or 0.2% of the global GDP.
Art: The ultra wealthy people are passionate collectors of art, both for aesthetic and investment purposes. They buy, sell, and display various types of art, such as paintings, sculptures, photographs, and digital art.
According to Art Basel and UBS, the global art market sales reached $50.1 billion in 2021, up 4% from 2020, despite the pandemic-related challenges. The report also noted that online art sales surged by 36% to $12.4 billion in 2021, accounting for 25% of the total art market sales.
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Knight Frank Wealth Report 2023: A Comprehensive Guide to Global Wealth and Property Trends
The Knight Frank Wealth Report 2023 is a comprehensive and authoritative guide to the global wealth and property trends, that provides valuable insights and perspectives for the UHNWIs, their advisors, and the industry stakeholders.
The Knight Frank Wealth Report 2023 is the 17th edition of the flagship publication that provides insights into the prime property markets, global wealth distribution, the threats and opportunities for wealth, commercial property investment opportunities, philanthropy and luxury spending trends.
The report is based on data from various sources, such as the Knight Frank Wealth Sizing Model, the Knight Frank Attitudes Survey, the Knight Frank Luxury Investment Index, and the Knight Frank City Wealth Index.
The report also features interviews and opinions from experts and industry leaders on various topics related to wealth and property. In this article, we will summarize some of the key findings and highlights from the report.
Global Wealth Trends
According to the Knight Frank Wealth Sizing Model, the global ultra-high-net-worth-individual (UHNWI) population, defined as those with a net worth of at least $30 million, declined by 2.4% to 218,200 in 2021, due to the economic and social impacts of the Covid-19 pandemic.
However, the report projects that the UHNWI population will rebound by 9.5% in 2023 and grow by 85% to 744,812 by 2027, driven by the recovery of the global economy and the emergence of new sources of wealth.
The report also reveals that the United States, China, Germany, Canada, and India are the top five countries with the most UHNWIs, while Hungary, Turkey, and China are expected to have the fastest growth rates in the next five years.
Prime Property Markets
The report analyzes the performance and outlook of the prime residential and commercial property markets around the world, based on various indicators, such as price changes, rental yields, demand and supply, and investment activity. The report shows that prime residential property prices increased by 2.1% on average across 100 cities in 2021, despite the pandemic-related challenges and restrictions.
The report also forecasts that prime residential property prices will rise by 3.6% on average in 2023, with the strongest growth expected in Auckland, Sydney, and Seoul1. The report also highlights the importance of sustainability, technology, and wellness as key factors influencing the prime residential property markets in the future.
The report also examines the trends and opportunities in the prime commercial property markets, such as office, retail, industrial, and hospitality sectors. The report shows that the prime commercial property markets faced significant disruptions and uncertainties in 2021, due to the pandemic-induced changes in consumer behavior, work patterns, and travel demand.
The report also predicts that the prime commercial property markets will undergo a period of recalibration and adaptation in 2023 and beyond, as investors and occupiers seek to balance the risks and rewards of different sectors and locations. The report also emphasizes the role of innovation, diversification, and social impact as key drivers of the prime commercial property markets in the future.
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Wealth Mobility and Preferences
The report explores the trends and factors affecting the mobility and preferences of the UHNWIs, such as their travel patterns, education choices, citizenship and residency options, and philanthropic activities. The report shows that the UHNWIs are frequent and discerning travelers, who seek to visit destinations that offer them a combination of safety, convenience, culture, and nature.
The report also reveals that the UHNWIs are keen to pursue education opportunities for themselves and their children, both in their home countries and abroad, with a preference for quality, reputation, and diversity.
The report also indicates that the UHNWIs are interested in acquiring alternative citizenship or residency, either for personal or professional reasons, with a preference for stability, security, and flexibility. The report also demonstrates that the UHNWIs are generous and strategic philanthropists, who support various causes and initiatives, with a focus on impact, transparency, and collaboration.
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Luxury Investments and Spending
The report tracks the performance and trends of the luxury investments and spending of the UHNWIs, such as art, wine, classic cars, jewelry, watches, handbags, whisky, and digital art. The report shows that the luxury investments and spending of the UHNWIs increased by 6% on average in 2021, as they sought to diversify their portfolios, preserve their wealth, and express their passions.
The report also ranks the luxury investments and spending of the UHNWIs based on their annual and 10-year returns, as well as their popularity and rarity. The report reveals that art, wine, and classic cars are the top three luxury investments and spending of the UHNWIs, while handbags, whisky, and digital art are the newest and fastest-growing ones.
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Key Takeaways
The ultra-wealthy people have different preferences, motivations, and challenges, depending on their age, gender, origin, and industry. Understanding the facts and figures about the ultra wealthy people can help us gain insights into their lifestyles, behaviors, and trends.
(India CSR)
