In August 2015, growth statistics emerged regarding real estate purchase trends of the elusive UHNWI (the Ultra High Net Worth Individual) demographic whose asset base is $30M and up. Wealth-X and Sotheby’s International Real Estate, partnered on the UHNW Residential Real Estate Index to uncover new trends. The UHNW Residential Real Estate index rose to 115.2 in Q2 2015, an 8.3% rise year-on-year, and the sixth consecutive quarter in which the index has risen. This highlights a continued strength of real estate as an investment for the global ultra wealthy population. 79% of UHNWIs own a second home, 53% of UHNWIs own three or more homes.
The answer to why this his happening now is that emerging market nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets. There are also potential citizenship opportunities driving additional interest. 20 countries in Europe and the Americas including the Caribbean, offer citizenship or residency programs when buying domestic residential real estate in that country. Another is viewing the new residence as an opportunity gateway to a better lifestyle, greater capital appreciation, rebalancing of liquid asset strategies, any type of ROI that could be seen as an opportunity, either in terms of lifestyle or capital asset management.
The new statistics clearly show an escalation of interest in luxury real estate. And this escalation usually infers a parallel escalation of purchase interest for luxury products associated with significant real estate acquisition. Contact me to learn more about this trend and to list in this active environment.
With over 11 years of experience and an established reputation as one of the top producing agents at ONE | Sotheby’s International Realty, I live to share my luxury real estate expertise with clients looking to buy and sell in Coral Gables and surrounding South Florida communities. Find all information about my background and services on my website.