Owner-occupied luxury properties worth $3 trillion are owned by the world's ultra-wealthy.

According to a new analysis by Wealth-X and Sotheby's International Realty, owner-occupied residential properties hold almost US$3 trillion in private wealth, which is more than India's GDP.

There are 211,275 ultra-high net worth (UHNW) persons in the globe, defined as those with net assets of $30 million or more, and 79 percent of them own two or more homes. property

New York City, London, and Hong Kong are among the most popular destinations for luxury residential real estate, but specialized spots such as Lugano, the Hamptons outside of New York City, and rural places throughout the world are also growing in appeal.

According to the Wealth-X and Sotheby's International Realty Global Luxury Residential Real Estate Report, the ongoing shift in the wealth creation cycle from the West to the East, as well as the growing importance of intergenerational wealth transfers, will have significant implications on the luxury residential real estate market, with a focus on new developments and a shift in investment strategy.

 

Other major conclusions from the initial study are included below:

In 2014, the worldwide value of UHNW-owned residential real estate assets climbed by 8%.

UHNW persons possess 2.7 owner-occupied homes on average.

Over 7% of the world's ultra-high-net-worth individuals obtained their fortune from real estate in 2014, up from 5% in 2013.

Ultra-affluent women place a higher value on real estate assets than their male counterparts, with real estate assets accounting for 16 percent of their net worth on average, compared to less than 10% for males.

Luxury residential real estate is a popular asset class among UHNW persons with inherited wealth, with such assets accounting for 17% of their net worth, compared to slightly under 9% for self-made UHNW persons.

UHNW persons with a net worth of $30 million to $50 million usually hold their primary property for more than 15 years and their secondary property for more than ten years.

Billionaires shift one of their four homes every three years on average.

Secondary homes are 45 percent more valuable than principal homes, with twice the square footage and ten acres of land.

Monaco has the largest density of foreign-owned UHNW houses, at 83 percent.

Over 6% of the world's UHNW population has shifted their permanent residence to a nation other than their birth nation; these individuals typically maintain a secondary residence in their birth nations, with India leading the way.

 

The Wealth-X and Sotheby's International Realty Global Luxury Residential Real Estate Report 2015 identifies specific attitudes, behaviors, and locations that matter to this industry and this wealth segment, and looks at trends in the UHNW population's appetite for luxury residential real estate around the world.