In an era of increasing global mobility, the Savills Spotlight on Wealth Trends report reveals how and where high-net-worth individuals choose to live. It examines key lifestyle and financial drivers, and highlights property hotspots – old and new. Here are 10 of its most fascinating findings.
1 Established wealth destinations rule …
The top five spots on the Savills HNW Individuals Hotspot Index are taken by Dubai, New York, Singapore, Hong Kong and Abu Dhabi, with Monaco, Los Angeles, Miami, Aspen and London completing the top 10.
2 … And are joined by new kids on the block
Emerging centres of wealth include Rome, Tuscany and Milan, which are among the top 30 locations on the HNW Hotspot Index thanks to the popularity of Italy’s lifestyle and its flat tax on global earnings. Sydney, Shenzhen, Kuala Lumpur and Lisbon also have growing numbers of wealthy residents.
3 Mobility is the buzz word
Global wealth is increasingly mobile, and the options for wealthy individuals are wider than ever – a change accelerated by technology and remote working patterns. For global citizens, this unlocks a new way to live and to use their properties.
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4 Lifestyle, lifestyle, lifestyle
Private members’ clubs, exclusive shopping, Michelin-starred restaurants and immersive cultural opportunities all influence where the globally wealthy live. “Health is wealth” is the new mantra, with access to nature and sophisticated wellness facilities now key considerations.
5 London heads the lifestyle leaderboard
Tokyo has the most Michelin Guide-recommended restaurants, Paris is a fashion capital and top designer brands cluster in New York. Yet for all-round quality of life, including access to the best hospitality and healthcare, London leads the world.
6 Property hotspots come in many forms
The Savills HNW Individuals Hotspot Index includes cities, coastal resorts, ski slopes and country escapes. What these locations have in common is that they attract high-net-worth individuals, thanks to an innovative economy where business can thrive, with low corporate tax, good airport connectivity and strong digital infrastructure.
7 The importance of property
Property remains an integral part of the fluid wealth portfolio. Tax regimes and the lifestyle on offer in global cities are key factors in real estate purchases, with additional motivations including schooling, capital preservation and the desire to buy a trophy asset.
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8 The destinations laying out the red carpet for families
For high net worth families, excellent international schools, personal safety and generously sized homes are essential factors in any relocation decision. Prime family-focused choices include Dubai, with 168 international schools at the time of writing, Madrid with 92, and London and Seoul, which have a high concentration of top-ranked universities.
9 Property goals
Buyers are choosing prime residential real estate based not just on their lifestyle priorities but also long-term security and the potential for rental yield. HNWIs today seek longevity and usability with a property checklist that includes privacy, generous space and a high-quality, turnkey finish.
10 The question of inheritance
Real estate plays an important role in succession planning, one reason for a surge in the growing numbers of family offices. The UK’s global reach on inheritance tax is a drawback while Singapore, Dubai and Monaco are attractive for tax-efficient wealth transfer.
This article was originally published on Portfolio by Savills, using findings from their inaugural research paper, Spotlight on Wealth Trends.
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Words by Cathy Hawker
