Owner-occupied luxury properties worth $3 trillion are owned by the world's ultra-wealthy.


According to a recent study by Wealth-X and Sotheby's International Realty, owner-occupied residential properties hold nearly US$3 trillion in private wealth, which is more than India's GDP. apartments for sale


There are 211,275 ultra-high net worth (UHNW) individuals in the world, identified as those with net assets of $30 million or more, and 79 percent of them own two or more homes.

New York City, London, and Hong Kong are among the most popular destinations for luxury residential real estate, but niche locations such as Lugano, the Hamptons outside of New York City, and rural areas around the world are also growing in popularity.

According to the Wealth-X and Sotheby's International Realty Global Luxury Residential Real Estate Report, the ongoing shift in the wealth creation cycle from the West to the East, as well as the growing importance of intergenerational wealth transfers, would have significant implications on the luxury residential real estate market, with a focus on new developments and a shift in investment strategy.

Other main findings from the inaugural report are listed below:

In 2014, the global value of UHNW-owned residential real estate assets increased by 8%.

UHNW individuals own 2.7 owner-occupied homes on average.

About 7% of the world's ultra-high-net-worth individuals made their fortune by real estate in 2014, up from 5% in 2013.

Ultra-affluent women place a higher emphasis on real estate assets than their male counterparts, with real estate assets accounting for 16 percent of their net worth on average, compared to less than 10% for men.

Luxury residential real estate is a common asset class among UHNW individuals with inherited wealth, with such assets accounting for 17% of their net worth, compared to just under 9% for self-made UHNW individuals.

UHNW individuals with a net worth of $30 million to $50 million typically hold their primary residence for more than 15 years and their secondary residence for more than ten years.

Billionaires change one of their four homes every three years on average.

Secondary homes are 45 percent more expensive than primary homes, with twice the square footage and ten acres of land.

Monaco has the largest density of foreign-owned UHNW homes, at 83 percent.

Over 6% of the world's UHNW population has moved their primary residence to a country other than their birth country; these individuals also maintain a secondary residence in their birth countries, with India leading the way.

The Wealth-X and Sotheby's International Realty Global Luxury Residential Real Estate Report 2015 examines unique attitudes, habits, and locations that matter to this market and this wealth category, and looks at developments in the UHNW population's demand for luxury residential real estate around the world.


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