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RESIDENTIAL REAL ESTATE 2023
Spotlight on the world’s leading markets for the wealthy
We are proud to debut our most recent collaboration with Wealth-X – The Global Luxury Report on Residential Real Estate. Informed by data collected from 4-million of the wealthiest people in the world from over 175 countries combined with the global insights from REALM’s membership comprised of elite real estate professionals from over 100 different brands, 40 states and 12-countries, the report represents some of the most comprehensive observations available in the industry.
State of the Luxury Market Town Hall
Thursday, March 9, 2023 | Time
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REALM is a community of elite, luxury real estate professionals who are in the Top 10% of their market in annual sales volume, and Top 10% in average selling price.
All residential homes of the wealthy matter. Wealthy individuals often have multiple homes and business interests in multiple locations. Any residential presence or ‘footprint’ — even if only for a few days a year in a primary residence or a secondary (or additional) home – represents an opportunity for organizations looking to connect, interact and nurture relationships with the wealthy.
The US dominates the list of the world’s top 20 cities by ultra high net worth (UHNW) residential footprint. With a total UHNW footprint approaching 22,000 individuals, New York is the leading global city of the wealthy, while Los Angeles and Miami both have a footprint in excess of 10,000. This reflects not only the sheer size of the US wealth market, but also its geographic and business diversity.
Three Asian and two European cities are represented in the top 20. London ranks in second place with a UHNW footprint of close to 16,000, and Hong Kong follows closely behind in third position, with 15,175. Beijing has overtaken Singapore in the top 10 – the UHNW footprint in China’s largest wealth market has increased steadily over recent years, driven by strong demand from the UHNW second-homer population.
Among the leading cities for UHNW second-home owners, Naples is a huge outlier. While technically smaller than a metropolitan area, Naples (Florida) has by far the highest ratio of UHNW second-homers to primary residence owners at 23:1. The ski resort of Aspen in Colorado, lower down the rankings, is the only other location with a ratio above five.
Monaco has by far and away the highest level of UHNW density. The city state on the French Riviera has one UHNW individual (as a primary resident or with a second home) for every 39 residents. Aspen ranks second and, among US cities, Naples and Greenwich also rank very highly.
Ultra wealthy homeowners in Dubai, Los Angeles and Monaco show distinctive characteristics. Dubai’s ultra wealthy home owners tend to be younger than those in the other two cities of focus and mainly comprise primary residents; those with homes in Los Angeles have a high share of self-made fortunes and private jets (about 10%); while Monaco’s home owners are a broad mix of ages and nationalities, and have a strong interest in boating, travel and sports.