The numbers say it all when it comes to ultra high net worth individuals and high-income people.
Wealth X, a global ultra high net worth intelligence and data company, tells us that the number of ultra high net worth individuals surged by some +24% in 2018 compared to 2017. The number of women considered ultra high net worth individuals increased +18% in 2018 compared to 2017. In Canada alone, Knight Frank tells us that the number of ultra high net worth individuals increased some +15% y/y.
According to the Pew Center, the number of high-income people in the US has increased this year to approximately 20% of the population.
The overall surge in wealth is due primarily, according to Wealth X, the Pew Center and Knight Frank, to the booming tech sector around the world. Specifically, within the global demographics of this “new” wealth, Asian and Pacific wealth has grown by +29.1%, EMEA wealth has grown by +9.0% and wealth among the Americas has grown by +10.8%.
And to what parts of the world are these millionaire migrants attracted? Vancouver, BC and Toronto in Canada, Colombo Sri Lanka, Ho Chi Minh Vietnam, Hyderabad India, Melbourne and Sydney Australia, Shanghai China, Mumbai India and Dubai in the United Arab Emirates. In the United States, New York City, San Francisco and Los Angeles continue to be the big draws.
In addition to “good stable, safe investments that will increase in value over the years,” wealthy migrants are going for lifestyle and life experiences, according to Wealth X, when buying real estate.
Millennial buyers (born 1981-2001), Gen-Xers (born 1965-1980) and Boomers (born 1943-1964) among global luxury buyers share common buying profiles.
- Millennials globally (47% of luxury buyers) tend to be the most self-directed buyers, wanting all relevant information before making any buying decisions. They tend to be 3 X more influenced by trends than any other demographic group and like to work with people who share their strengths, i.e., speak their language.
- Gen-Xers globally (28% of luxury buyers) highly value residential properties that offer them flexibility in terms of work-life balance. They tend to be most influenced by modern conveniences rather than prestige or history and embrace online shopping as their primary mode of information/research gathering.
- Boomers globally (25% of luxury buyers) continue to have the most money to spend on luxury properties. Personalization is the key for this demographic. They tend to focus on engaging, shareable, one-of-a-kind properties that can be enjoyed by multiple generations.