Naples, FL is home to Ultra-High-Net-Worth Individuals who are shaping the worlds’ real estate markets.
Real estate now accounts for around a fifth of the invested wealth of the nearly 200,000 ultra high net worth individuals (UHNWIs) in the world, according to new analysis from international real estate advisor, Savills, in association with Wealth-X, the world’s leading UHNW intelligence provider. The use of private equity in major property deals worth at least US$10 million has nearly tripled since 2009.
The firm has also analyzed the way private money moves around the real estate world and found that the majority (92%) of investments are within the ‘home’ global region. North America stands out as uniquely domestic, with 99 per cent of all UHNWI investment coming from US citizens themselves.
In “Around The World In Dollars and Cents” published today, Savills estimates that the total value of the world’s real estate is now around US$180 trillion, some 72 per cent of which is owner occupied residential property. Of the US$70 trillion that is ‘investable’ and therefore traded regularly – including US$20 trillion of commercial property – over half is being bought by private individuals, companies and organizations. Investing institutions, listed companies and publicly owned entities are becoming relatively less important to world real estate as a result.
Around 3 per cent, or US$5.3 trillion, of the world’s total real estate value is owned by UHNWIs. This wealthiest 0.003 per cent of the world’s population has real estate holdings which are worth an average of US$26.5 million each.
Mykolas D. Rambus, CEO of Wealth-X, confirms the growing importance of private wealth: “We forecast that the UHNW population will grow by 22 per cent by 2018, its combined wealth – currently US$27.8 trillion – is expected to total over US$36 trillion by 2018. This presents huge opportunities for those involved in global real estate investment to create the right product in the right locations.”