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Report shows where the world's 200,000 ultra-rich spend their real estate dollars.

Ultra wealthy individuals are buying up luxury homes around the world to further diversify their holdings, according to a new report by Wealth-X and the Sotheby's International Realty brand.

The joint report, Europe, Middle East and Africa Luxury Residential Real Estate Report For 2015, provides insight into the EMEA region's luxury residential real estate market and identifies purchasing and investment opportunities for ultra high net worth (UHNW) individuals looking to diversify their holdings.

The report shows that the UHNW Residential Real Estate index tracked by Wealth-X hit a new record high of 112.1 in the first quarter of 2015, up nearly four percent from the fourth quarter of 2014, and seven percent from the first quarter of 2014.

The index takes into account the full range of luxury residential properties that are owned by the world's wealthiest individuals.

Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively own nearly $3 trillion of real estate, equal to 10 percent of their net worth.

Other key findings from the report show:

* The EMEA region offers purchasing and investment opportunities, particularly in Madrid, Dubai and Cape Town, where luxury properties and strong lifestyle considerations may appeal to UHNW buyers.

* London remains the top real estate hub for the EMEA region. The city's price per square foot (US$3,103) is nearly four times that of Dubai, six and nine times more than Madrid and Cape Town respectively.

* One-third of all premium London properties for sale (homes valued above $1 million) are worth more than $10 million.

By comparison, Dubai has only eight percent of its luxury properties listed in the super prime range above $10 million.

* The less expensive price per square foot for premium real estate in Cape Town generally leads to larger houses. A luxury property in the South African city has six bedrooms on average--higher than Madrid and Dubai, the two other cities profiled in the report.

Wealth-X President David Friedman commented: "Because it touches upon several key elements in an ultra affluent individual's life, including lifestyle, investments and family, luxury residential real estate encapsulates a core part of their identify.

"As their wealth continues to grow, so will their investment fueled by flight to safety from less geopolitically stable geographies."

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Comment:Report shows where the world's 200,000 ultra-rich spend their real estate dollars.
Publication:Real Estate Weekly
Article Type:Report
Date:Jul 1, 2015
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