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The "Billionaire Hubs" - A Look At The Housing Habits Of The World's Ultra Richest People
When it comes to our current pre-war, pre-revolutionary world (in Paul Tudor Jones' words) there are two social classes which are jockeying for the post positioning when it all comes crashing down: the Ultra High Net Worth, i.e., the 0.01%, those 211,275 individuals (and their families) who have a net worth over $30 million and who collectively control $30 trillion in wealth, and everyone else, with the countdown to extinction for the global middle class now getting louder by the day, leaving a world of a handful of uber-wealthy oligarchs and billions of, well, others.
And nowhere is this distinction more vivid than when looking at their residential real estate holdings. But while the real estate of the 99.99% is boring (and increasingly in the form of rentals), when it comes to the dwellings of the 0.01% things get exciting, and are the topic of the latest joint report between Wealth-X and Sotheby's, which while not revealing anything groundbreaking has plenty of pretty charts.
... and "fast facts" such as the following key findings (see if you can spot in the data below how, as we first hinted in 2012, the US and NYC specifically, became the new "Swiss bank account"):
- The world’s ultra high net worth (UHNW, or those with net worth of $30 million or more) population totals 211,275 (up 6% from last year), control $29.7 trillion in wealth (up 7% from 2013) and these individuals each own, on average, 2.7 properties.
- US$2.9 trillion of the world’s UHNW wealth is held in owner-occupied residential real estate assets.
- 79% of the world’s UHNW individuals own two or more properties and just over half of them own three or more residences.
- Secondary residences are 45% more valuable & twice as large
- UHNW individuals are increasing the number of properties they hold outside their home countries with the United States, United Kingdom and Switzerland being the three favorite locations.
- Over 7% of the world’s UHNW population have made their wealth through the real estate industry, up from 5% in 2013.
- The UHNW Residential Real Estate Index shows a 8% increase in the value of UHNW-owned residences globally in the past year.
- The United States is the most popular country for foreign UHNW individuals looking to buy secondary residences.
- New York is the city with the highest number of UHNW-owned residences in the world.
- Monaco has the highest density of foreign-owned UHNW residences - 83%.
- Female UHNW individuals value real estate assets more than their male counterparts, holding 16% of their net worth in such assets compared to less than 10% for men.
- UHNW Chinese and Russian multiple homeowners are typically self-made and young – these two clusters are becoming increasingly important buyers of luxury residential real estate around the world.
- Over 6% of the world’s UHNW population is made up of expatriates - those individuals who are currently based outside their home countries. These individuals are stimulating residential real estate demand in their home countries’ markets
- for example, India’s non-resident population is increasing demand in Mumbai’s residential real estate market.
These are the world's "billionaire hubs":
One thing about billionaires: they don't want to be confined to just one residence. Or two. Or three. "These individuals typically not only own a residence in their primary business city, but also own secondary residences outside this home city and often outside their home country. The UHNW population forms the consumer base for the global luxury residential real estate market. There are varying definitions of “luxury residential real estate" and some differ by location - for example, city penthouses and countryside mansions."
What are the UHNW's preferred locations? Well, everywhere, but they have a certainly predisposition to select venues:
We continue to see New York, London, Hong Kong and other such markets dominate the luxury residential property landscape, although other more niche markets such as Monaco, Lugano and even Marbella are also attractive to UHNW investors. New markets are becoming increasingly important in generating investment from new UHNW individuals and therefore new demand for luxury residential real estate - whether for these new UHNW individuals, or for foreign-based UHNW individuals who want to enter these markets. Middle Eastern cities such as Abu Dhabi and Dubai continue to see soaring housing prices with high demand – spurred by the governments’ focus on tourism and real estate as sources of investment.
All around the world – from St. Bart’s to Marbella, Mexico City to Mumbai - UHNW individuals own real estate, with clusters of various sizes forming in various locations. What this report also shows, however, is that some of the world’s most significant hubs for luxury residential real estate are tied to the identity of a particular city - from the appeal of the Hamptons for New Yorkers in the finance industry to the attraction of Los Angeles for individuals involved in the entertainment industry. Despite this phenomenon, one pervasive trend remains true – UHNW individuals’ interest in luxury residential real estate is not bound to any one location. Many in the UHNW population acquire properties in areas that have sentimental value and that can offer privacy. This is why, aside from their primary residences typically located in global hubs, UHNW individuals’ secondary residences in the countryside are often particularly luxurious.
What is curious is that while the primary UHNW residence tends to be tied to their area of business interest, it is the secondary house that is a far greater store of value:
Below are the prevailing primary residence countries of choice:
And secondary:
How much of the UHNW's net worth is in real estate? It depennds on their total wealth, with 22% allocated to housing for the lowliest rung, those with "only" $30-0$49 million, at 22%, going all the way down to a mere 3% for the wealthiest, those with over $1 billion in wealth.
Of course, no look at the ultra-wealthy home buyers would be complete without your stereotypical breakdown of the two biggest purchasing groups in recent years: the Russians and the Chinese. Sure enough:
One thing is certain: the housing market for the less than ultra-luxury segment may be stagnating, but when it comes to the offshore tax shelters known as "luxury real estate" (especially in the US), it is truly a bull market, one which is rising far faster than the overall market.
Wealth-X's conclusion is effervescently optimistic:
The future of luxury residential real estate looks highly promising and positive. With its tendency to gain in value faster than traditional real estate and its greater appeal to UHNW individuals with inherited wealth as well as its reputation as a safe asset, luxury residential real estate is set to see more and more growth in demand. We also expect that as new UHNW individuals become involved in the real estate industry, a new boom of supply of such real estate will occur - in locations that have so far been less important than the traditional hubs explored in this report.
Well, coming from Sotheby's one wouldn't expect a view of the world in which the rich don't get richer, and fail to generate the much needed sales commissions. And, it is a view that is surely accurate, at least until either the revolution or war predicted by PTJ, becomes a fact. By then, however, the world will have far bigger problems than what the price of a luxury palace in St Barts is.
Finally, since the Wealth-X report is ultimately a sales brochure, here is a sample catalog of what those 211,275 individuals for whom this post is relevant, are bidding on.
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The only way to fix it is to flush it all away
History_rhymes.
Thirty million isn't what it used to be;)
These billionaire cockroaches are crawling all over each other trying to pay the highest price for a house in a small area each of these countries. Go for it! Inflate the shit out of prices...the higher they go the farther they fall. At least this giant pissing contest will keep them the hell out of places where normal people live.
Is this a real estate alert?
I'd keep the museums though. Definitely!
A neutron bom' would solve the problem: The radiation wipes out the sheeple, but leaves the buildings.
It's probably how it will happen If/When things get ultra serious.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Great! Go buy real estate in New York and Fuck off!
The Aristocrats: The Rothschilds
https://www.youtube.com/watch?v=b0su39y7QOM
.
Lord Rothschild Explains Economic Warfare
https://www.youtube.com/watch?v=Kh9kNmq-5fo
.
this is how it is done.
FYI... What every Jew and non-Jew should know:
http://just-another-inside-job.blogspot.de/2007/07/what-every-jew-and-no...
According to one scholar, a heretical cult, the "Shabataian Frankists," controls organized Jewry, including Zionism and Freemasonry.
They believe Shabatai was the Messiah (God) and his soul has transmigrated down to the Rothschild dynasty, who are now the "king of the Jews."
According to their messianic system, Redemption requires that the Rothschilds become God, i.e. king of the world. This will see the sacrifice of 2/3 of all Jews and the destruction and enslavement of the rest of mankind. Bjerknes believes this demented creed actually is the motive force behind history, including all wars, and world government.
89% of "the Chinese Buyers" are "self-made."
I wonder what that means. In a centrally-planned economy, "self-made" is a rarity. That's the whole idea of a state-run economy. The oligarchs get to pick the winners. If you're self-made, then you've had to fight against them all the way to the top.
The Chinese buyers are 'picked' to be self-made, as the term “self-made” is an antonym of communism.
Since Capitalism hasn’t existed for years in the USA, “self-made” is also impossible to achieve in our current fascist kleptocracy, as well.
How can anyone make that sort of money in Washington, D.C.? I thought that our public servants were paid only a pittance.
Oh, never mind!
You are right, don't ask questions, just keep looking at your IPhone and you will be fine.
I read that whole article in the voice of Robin Leach.
Whatever happened to Robin Leach?
http://www.zerohedge.com/news/2015-03-30/hedge-fund-olympics-caption-con...
Sir, I'm afraid this property is a bit out of your reach at $14.6 million.
Well, what would it take for me to qualify then?
About $14.59 million more in income.
Soooooo, what you're telling me is that I have a chance. Yeaaaaaah!
As an Australian I love the way our entire nation is just a billionaire bubble. From the "millionaire factory" that is Macquarie Bank to the mining and agriculture sectors we are disproportionately "rich". Add to this the interest those "self made" Chinese billionaires have for this continent and you can begin to imagine just how wonderful for everyone else the realestate industry in this country has become.
Aussies are so rich now that even the servants have servants.
I'm a carpenter that can keep up with the best of them , I live in flyover country between NYC and the Hamptons . Sorry but , I say let the good times roll!
They seem to be implying that all the ultra rich own multiple properties. Don't any of them rent? Even luxury resort accommodations?
What does this do to the wide spread theory that real estate is an investment for rubes and sheeple?
You don't understand. These people pay cash for what they know are useless baubles for their trophy wives and mistresses. They never see with their own eyes many of the properties. They're status symbols, not the rat-traps they palm off on proles as investments.
That cash invariably comes from the pockets of proles stiffed on pay rises.
When I was younger, I looked up to UHNW individuals as examples of successful capitalists. Now, I see them as cronies with connections. If they had to compete without their purchased regulations and other anti-competitive measures, they'd get eaten alive.
BIG business begets BIG government. Need a powerful and over-reaching governemnt to stamp out your competition and allow cartels. Without gubmit, prolly have to use mafiaso tactics.
This is perfectly Natural law (that obeys Laws of Human Nature)...
1. When you're a 'Nobody', trying to work your way up, you definitely want the System to be 'fair' and libertarian -- to give you a chance at success and its rewards.
2. If/when you finally make your way to the top of the competitive heap and you're a 'Somebody', you will want to eliminate the costs associated with this Struggle in Competition. THE best way to do this, is to change the Laws in your favor.
This includes not only tax advantages, but minimizing or avoiding ALL unwanted expenses (e.g. costs due to Labor Laws, Environmental Laws, etc). Ever increasing Compliance regulations in Industry Standards, Taxation, etc. increase the "Cost of doing business" to such high levels, that only the biggest can afford to pay them.
If the ROI for political contributions is 500:1, you're damn right you're going to contribute to Big-Biz friendly pLOticians (cause they 'plot' and scheme).
That's why the ONLY way to keep a healthy economy healthy, is to have and KEEP the CHECK & BALANCES of the system. Under Reagan/Bush. "DEREGULATION" became a codeword for the elimination of these Checks & Balances, which allowed Crony Capitalism to rise, and with it the ever-increasing redistribution of wealth from the Unwashed Many to the Special Few.
But 'tis a common proof,
That lowliness is young ambition's ladder,
Whereto the climber-upward turns his face;
But when he once attains the upmost round.
He then unto the ladder turns his back,
Looks in the clouds, scorning the base degrees
By which he did ascend.
- da Bard
This place is crazy..
im starting to think its more a 'hate usa /hate the gov/hate the rich/ hate the jews/hate the muslims/hate the blacks/hate the poor...?
And as it never fails..the comments jump on the wagon.
What am i missin folks?
Is this just a hippie hate site over anything else?
If your dumb enough to down arrow this..you must be smart enough to back it up. Lets hear the explanation.
I like my furniture better and I'm poor as shit.
:)
Im just trying to panhandle enough money to get the real estate taxes paid up for the year on my cardboard box over the steam grate. Prime property though, close to the liquor store and titty bars. You know what they say, Location ,Location, Location.
It's sad to see so many comments tearing down the rich for being rich. This article should be seen as a success story. We live in the wealthiest time in history with the greatest potential for opportunity to reach the top in anything we want. Instead of complaining about the rich, find out how they did it. Then do better. Set your goals. Write them down. Develop a plan of action. Find out the people/places/things you need to get on board to help you get to the top. Then take the first step and keep adjusting your approach until you get there. Never quit. And never complain - especially about people who have more than you.
If you feel that some of the rich are evil, that's fine. When you get to their level, make sure you act differently.
Now stop complaining and get started.
Great material wealth is and has always been obtained by usury, murder, rape, and theft.
Not one billionaire ever got there being honest and compassionate.
The worship of Mammon is accomplished through greed, covetousness, selfishness, corruption sociopathy and misanthropy.
You're confusing some guy who owns a plumbing supply company who might be worth 10 million or a local business owner whose worth a few million with the global oligarch class who were born into their respective industries, more or less.
The ultra rich are usually oligarchs who obtained wealth through illicit means (finance for example..most hedge funds are just highly advanced criminal organizations)
Fuck'em all in the pussy! They can tongue punch my fart box.
calling henry george .....
Just the fact that DC is on this list proves, beyond a reasonable doubt, that the 0.01% are getting their ill gotten gains from the USSA taxpayer.
"I have a mansion, forget the price. Ain't never been there, they tell me it's nice." - Joe Walsh Life's Been Good
I bet they haggle over every fuckin nickel and dime. lol