The global population of ultra-high-networth individuals (UHNWIs) has grown by 60% in the 10 years since The Wealth Report was first published. According to data prepared for the 2016 report by wealth intelligence company New World Wealth, there are now 187,500 UHNWIs with $30 million or more in net assets, excluding their principal residence, around the world. This figure is up 61% from 116,800 in 2005.
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The Wealth Report, an annual publication released by worldwide property consultancy Knight Frank, looks at wealth and global prime property trends. In 2016, NYC ranked #2 in terms of being the most important and well-connected cities for Ultra High Net Worth Individuals or UHNWIs (those with over $30 million in net worth excluding primary residence), behind London. This is the second year in a row that London has beaten NYC, however, both cities have long dominated the ranking of global cities that matter to the world’s wealthy.
New York City had 5,600 UHNWI residents in 2016, the highest of any of the global cities, up by 32% over the last 10 years. In addition, the report looked at how well connected cities were in terms of UHNWIs living within 2 hours travel time. NYC came in at 8,300 UHNWIs, while London had 4,500 UHNWI residents, with 16,100 UHNWIs were living within 2 hours travel time, the highest of any of the global cities. The concentration of wealth in Europe helps to explain why the report suggested London being the more important global city than New York.
In terms of Multi-Millionaires (those with over $10 million in net worth, excluding primary residence), NYC came in first with 14,300 Multi-Millionaires vs. London with 12,730 Multi-Millionaires. In terms of Millionaires (those with over $1 million in net worth, excluding primary residence), NYC came in second with 320,000 millionaires vs. London with 370,000 millionaires.
The report also reported on Seasonal Fluctuations of the Multi-Millionaire population (those with over $10 million in net worth, excluding primary residence), which are good prediction of demand for second home purchases. With a peak population of 32,500, NYC ranked #2 behind London. The Low Population of 11,870 ranked #1, higher than London, which came in at 10,450.
Going forward, the report predicted that in the next 10 years, NYC would pick up an additional 1,624 UHNWIs, maintaining its status of one of the most important cities for UHNWIs.
So, what does all this mean for the property market? Expect a robust market for Manhattan prime and super-prime properties for the next decade.