Where are the Ultra-Wealthy Buying their Homes
As we enter a new gilded age, the ranks of the ultra-wealthy have been growing exponentially across the world. London’s luxury real estate brokerage, Knight Frank, estimates that the number of these incredibly wealthy individuals (defined as those with net assets over $30 million) has grown by 35.6 percent between 2006 and 2012. Trends from 2012 to 2018 haven’t been fully analyzed, but world economic growth suggests the arrow is still pointing up.
This ultra-wealthy class has been, unsurprisingly, snatching up real estate to grow and diversify their holdings. These purchases are sound long-term investments, but also tend to be a bit of a bragging piece, of course. These homes aren’t just in traditional vacation and resort locales but scattered across some of the world’s great cities. At the top of this list of destinations are New York City, London, and Miami.
What’s the draw?
A perfect location bridging New York City and Latin America, Miami has been enjoying a climb in the ranks as the uber-rich with a connection to South America take root. World-class restaurants, beautiful beaches, and an enticing nightlife makes Miami, not only for the weather, a hot place to be. Condo sales of $1 million or more have increased by 47.6% year over year, and luxury single-family home sales have also jumped by 16.7%.
The development of David Beckham’s new Major League Soccer franchise is a draw from one of the world’s most popular sport. Additionally, Turkish businessman Mehmet Bayraktar’s Island Gardens Deep Harbor, a superyacht facility, has opened the doors for the exceptionally wealthy to bring their prize yachts to Miami.
With major renovations underway, Miami is a huge draw for both investment properties and liveable market.
London is one of the world’s oldest and greatest hubs of culture, history, finance, and pretty much anything else you can think of. Home to some of Europe’s primary financial centers, the appeal of London to the richest among us shouldn’t surprise anyone. Despite the potential for a shake-up with the ongoing Brexit talks in the UK, London has been attracting rich investors and home-buyers from Russia, Asia, and the Middle East.
These investors are flocking to London neighborhoods such as Knightsbridge, Kensington, Chelsea, and Belgrave Square. Apartments and townhomes in these areas have been picked up almost as soon as they are listed with absolutely enormous prices tags. Some of these units are going in the hundreds of millions with prices per square foot nearing $10,000.
Between 2014 and 2016 The Guardian reported foreign investors have bought up 3,600 of London’s 28,000 newly built homes. These homes, suitable for first-time buyers, are being rented out for increased cash flow for investors from Hong Kong and Singapore primarily.
Between 2008 and 2014, about 30% of condos in Manhattan developments have been sold to foreign investors and LLCs. New York developers are making new homes with these wealthy foreign buyers in mind. With penthouses costing upwards of $100 millions dollars that come with amenities such as private restaurants, world-class spas, and gorgeous panoramic views, foreign investors are enticed by chance to flex their wallets and grab some of the unique and coveted real estate in the world.
The Atelier, an especially ritzy Midtown condo tower, is looking to unload all nine units on their 45th floor in one sale which comes packaged with a 1 million dollar yacht and five years of docking fees, two Rolls Royce Phantoms, and courtside seasons tickets to the Mets games.