Knight Frank Report Reveals the Favourite Residential Destinations of the World’s and India’s Wealthiest People

For India’s wealthy, the top preferred markets are the United Kingdom, USA, UAE, Singapore and Canada, according to Knight Frank’s Wealth Report 2018.

As per the latest survey by global real estate consultancy Knight Frank LLP, Hong Kong tops the ranking for the greatest number of sales in the ultra-prime residential market worldwide, with the highest number of transactions worth US $ 2.5 billion achieved in the last 12-month period ending August 2018. It was also the most expensive ultra-prime market, with an average price of US $52.8 million paid. New York and London took the second and third place, respectively.

According to the research, the top six ultra-prime city markets of Hong Kong, New York, London, Singapore, Los Angeles and Sydney reported 153 transactions above US $25 million in the 12 months to the end of August 2018 with a combined value of US $6.6 billion. The combined transaction levels in these cities grew by 12% in the two years since 2016 with growth set to continue.

Liam Bailey, global head of research at Knight Frank commented, “The relentless creation of private wealth globally over the past decade has fuelled the growth of ultra-prime residential markets.”

In India, an analysis of the trends in the last three years indicate that the UK, USA, UAE, Singapore and Hong Kong were the most preferred markets by the Indian wealthy.

The recent studies highlight that the number of demi-billionaires, those with US $500 million or more in net assets, will rise by a staggering 70% from 200 in 2017 to 340 in 2022. Subsequently, the rise in the number of Indian demi-billionaires will propel outbound investments in key residential destinations of global significance.

In 2018, the top preferred markets are UK, USA, UAE, Singapore and Canada. The inherent reasons for these markets could range from being a top global city to a second home destination or a ski resort destination.

Knight Frank’s Wealth Report 2018 highlights that the global ultra-wealthy population (US $50 million+ in net assets) grew by 18% in the five years up to 2017 and is forecast to increase a further 40% over the next five.

This growth is likely to mean transactions at the ultra-prime end of the market will continue to increase and spread to more locations. Other cities such as San Francisco, Chicago, Dallas, Beijing and Shanghai may soon rise in the rankings and second home markets such as Sardinia, Portofino and the French Alps are also likely to see more activity at this level.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The rise of the Indian Ultra wealthy population and their inclination for owning ultra-prime property globally resonates well with the strong trend of increasing outbound investment from India. While this investment is finding way into key residential destinations globally, it also presents a unique opportunity for top Indian markets like Mumbai and Delhi that are bound to benefit if they create a comparable product for such demand.” - TWL Bureau