NEW YORK, Jan. 19, 2017 /PRNewswire/ -- Wealth-X, in collaboration with Warburg Realty and Barnes International Realty, today released the first edition of the "Global Property Handbook" – a review of the luxury real estate market that explores the buying habits of the world's wealthiest people. The report names London, New York and Tokyo as the most popular for ultra-high net worth (UHNW) individuals – those with a net worth of $30 million or more – and lists Cuba as one of the top emerging markets for real estate developers.
"This report is the first-ever attempt at putting the global real estate market into perspective," says Frederick Warburg Peters, CEO of Warburg Realty. "Using the resources of three companies, we've taken a deep dive into where the world's highest earners are living, playing and investing – and explored the practical, emotional and financial factors involved in their buying decisions."
The Global Property Handbook reveals that 10% of UHNW individuals own five properties or more. To help map these properties, the report includes the new "Alpha Cities Index," which ranks the overall attractiveness of a city for wealthy individuals when considering a luxury real estate purchase. The top five cities from the Index are detailed below:
- London, UK: Unmatched in its appeal to the wealthy, from culture to financial security, despite recent tax reforms.
- New York, US: Vying closely for the number one spot, with the largest ultra-wealthy population and scores of the top-class universities.
- Tokyo, Japan: A luxury shopping destination and the wealth center of Asia, Japan's capital fuses tradition with financial strength.
- Sydney, Australia: A lifestyle like no other, with beaches, sunshine, culture, and commerce, its buoyant property market maintains value.
- Paris, France: A haven for culture, entertainment, shopping, and finance, the City of Light is a magnet to the wealthy property buyer.
Beyond these premier cities, the Global Property Handbook identifies the top emerging luxury destinations for wealthy real estate buyers. In addition to Cuba, this list includes global capital cities including Lisbon, Portugal; Berlin, Germany; and Tel Aviv, Israel.
The report also features the Global Luxury Residential Property Index, which tracks the top 10% of the residential property market (by median sales price) since 2010. This year, the Index shows that prices peaked in 2015 and fell during the first half of 2016. As a result, only the properties with an optimal combination of practical, emotional, and financial benefits have continued to grow in value.
"As a share of total net worth, real estate holdings tend to fall as you increase your personal wealth. So someone with a net worth of $10 million might own a $5 million apartment, but if you have a net worth of $100 million, you're less likely to own $50 million worth of real estate," says Clelia Warburg Peters, President of Warburg Realty. "I think there was a misunderstanding of the depth of the market on the part of many developers."
"We're proud to have collaborated with Wealth-X and Warburg to create the benchmark for global luxury real estate research and insights," says Thibault de Saint Vincent, President of Barnes International Realty. "At a global level, the luxury property market is performing well, in what is a challenging environment. Looking ahead, international diversification of real estate will be particularly important, as there can always be local threats due to economic and political factors."
The global leader in wealth information and insight, Wealth-X boasts the world's most extensive collection of hand curated dossiers on the ultra wealthy and produces unparalleled high net worth market research. www.wealthx.com
About Warburg Realty
With a longstanding tradition of extraordinary service, Warburg Realty has remained at the forefront of the industry for 120 years as a true example of premium brokerage, and is one of the last privately held residential real estate firms in New York City. Warburg's offices include its 7,000-square-foot flagship at 654 Madison Avenue, a Flatiron location at 18 West 21st Street, and a new Tribeca office at 124 Hudson Street. www.warburgrealty.com
Founded over 20 years ago, today BARNES is a major player in international luxury real estate. BARNES brings its clients global expertise to advise them on their international real estate investment decisions while offering tailored local support. http://www.barnes-international.com/
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SOURCE Warburg Realty