Global hot spots

UHNWIs buy residential real estate for a variety of pursuits, climates and attractions.

21 January 2014, Words by Yolande Barnes

 

There are a significant number of hot spots around the globe where UHNWIs will invest. These hot spots fall into three categories: cities, retreats and destinations.

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Global cities are important for UHNWIs as this is where wealth is made, stored and invested. UHNWI home ownership in these cities closely reflects and underlies a predilection for other types of real estate investment in the same cities – and probably other types of inward investment as well. The selection of a city as a home often reflects other financial commitments there. Top cities, by the size of residential commitments are New York, followed by London, Hong Kong and Singapore.

Global retreats are many and varied, including islands, coastal resorts, lakes and countryside. The top location, by the value of UHNWI homes found there, is the Caribbean. Many other retreats are part of the city scene, acting as weekend boltholes from places of work and business. The US has many examples of these, the Hamptons, Winnetka and Nantucket Island for instance.

Destinations of the wealthy have evolved for many reasons, mostly related to pursuits such as skiing, hunting, shooting, fishing, golf, wine and sailing. Places as varied as Aspen, Colorado and the Scottish Highlands fall into this category. Some are related to specific business types, for example, tech industries, tax havens, film-making or even politics. All are characterised by high-end housing in exclusive environments, such as Beverly Hills, Monaco and Bethesda, Maryland.

The emergence of retreats and leisure destinations is a nascent market in Asia. The development of resorts to rival Europe’s sun and ski playgrounds is only just beginning in the East; Japan’s ski resorts and China’s Hainan Island being rare examples.

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Key Contacts

Yolande Barnes

Yolande Barnes

Director
World Research

Savills Margaret Street

+44 (0) 20 7409 8899

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883