The growth has come from a recovery in asset pricing led by **, Bitcoin, and even real estate.
The number of ultra-high-net-worth individuals worldwide grew by 42%, reversing the downward trend in 2022.
Knight Frank's annual report, released on February 28, defined "ultra-high net worth" as having a net worth of at least $30 million. Of the total 626,619 super-rich, North America has the largest share of super-rich, up 72 percent, compared to 601,300 a year ago.
The wealth story of the United States is staggering," said Liam Bailey, global research director at Knight Frank and editor of the report: "Not only has the United States been a huge force in wealth creation in the past, but we, in the next five years, will have a third of our newly rich population coming from the United States." ”
Bailly attributed the reversal to a "recovery in asset pricing led by **, Bitcoin and even real estate." ”
Importantly," Bailly said, "wealth creation is back." ”
By region, the Middle East has the second-highest number of super-rich, with an increase of 62% and Africa came in third with an increase of 38% 。Only the wealthy in Latin America have decreased by 36% 。By country, Turkey is ranked at 9The super-rich population growth rate of 7% tops the list, followed by the United States at 79% and 6 percent in India1% and 5% in South Korea6% and 5 in Switzerland2% 。
Bailly said increasingly globalised capital flows could be the reason for some of the changes. "Money from Latin America has flowed into U.S. markets like Miami. While markets such as London and New York still attract wealthy property buyers, we are seeing a shift to new markets," he said.
Dubai, as a new global hub, has been prominent in terms of what the world's wealthy want to invest in. Central cities such as Miami and Milan are also trying to attract wealth, and they have been quite successful. ”
Bailly said the evolution of these markets has created a virtuous circle, with wealthy investors seeing a "game of opportunity" to invest in commercial real estate and infrastructure.
"The rich need to be served where they are looking," he said. He noted that Miami lacks high-quality schools, and that an influx of wealthy people may seize on this and take remedial measures. "There is still a lot of work to be done in the re-valuation of commercial real estate, which means that well-capitalized investments can go into the redevelopment and reuse of buildings. ”
Bailly said the increase in wealth liquidity also meant that ** was "balancing the impact of these flows": "Over the past 12 months, Singapore has increased stamp duty on foreign home buyers. We're seeing the same thing in Canada, where foreign buyers are barred from entering. Portugal's foreign investor program, which encourages the wealthy to buy real estate, has shifted to other investments, "including company creation, art and research."
It is an attempt to balance the inflow of wealth with the needs of local residents. Wealth can be a controversial topic, and countries will always try to balance inequality somehow."
At the same time, wealth growth does not necessarily come at the expense of the less affluent, and it can create "real economic growth," he said.
Knight Frank Wealth Report** The number of the world's super-rich will grow by 28 by 20281% 。Knight Frank said Asia will lead the way, with high growth rates in India (50%), Chinese mainland (47%), Malaysia (35%) and Indonesia (34%). Europe and Latin America are "expected to be the weakest regions," the report said.
by Michael Kamina
Edited by Yu Zhou
Copyright Notice: Barron's original article, without permission, may not**. For the English version, see February 18, 2024** "'Wealth creation is back'—u.."s. poised for huge growth in ultra-rich population.”。
The content of this article is for informational purposes only and does not constitute investment and financial advice of any kind; The market is risky and investors should be cautious. ）
Wealth management.