New Report: Global Demand for Luxury Homes Strong in the EMEA Region As Ultra Wealthy Buyers Look To Diversify Holdings
Posted by Brittanny Havard — June 29, 2015
DENVER, CO - Ultra wealthy individuals are buying up luxury homes around the world to further diversify their holdings, according to a new report released June 23, 2015, by Wealth-X and the Sotheby’s International Realty® brand.
The joint report, Europe, Middle East and Africa Luxury Residential Real Estate Report for 2015, provides insight into the EMEA region’s luxury residential real estate market and identifies purchasing and investment opportunities for ultra high net worth (UHNW) individuals looking to diversify their holdings.
The report shows that the UHNW Residential Real Estate index tracked by Wealth-X hit a new record high of 112.1 percent in the first quarter of 2015, up nearly 4 percent from the fourth quarter of 2014, and 7 percent from the first quarter of 2014. This highlights the strength of the global luxury real estate sector on the back of demand by ultra high net worth individuals.
The index takes into account the full range of luxury residential properties that are owned by the world’s wealthiest individuals. Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively own nearly US$3 trillion of real estate, equal to 10 percent of their net worth.
Key findings from the report are that the EMEA region offers purchasing and investment opportunities, particularly in Madrid, Dubai and Cape Town (three EMEA cities featured in the report), where luxury properties and strong lifestyle considerations may appeal to UHNW buyers.
London remains the top real estate hub for the EMEA region, and the city’s price per square foot (US$3,103) is nearly four times that of Dubai, six and nine times more than Madrid and Cape Town respectively. One-third of all luxury London properties for sale (homes valued above US$1 million) are worth more than US$10 million. By comparison, Dubai has only 8 percent of its luxury properties listed in the super prime range above US$10 million. The less expensive price per square foot for premium real estate in Cape Town generally leads to larger houses. A luxury property in the South African city has six bedrooms on average – higher than Madrid and Dubai, the two other cities profiled in the report.
Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this second luxury real estate report for 2015. Because it touches upon several key elements in an ultra affluent individual’s life, including lifestyle, investments and family, luxury residential real estate encapsulates a core part of their identity.”
According to Philip White, president and chief executive officer, Sotheby’s International Realty, this joint report was designed to provide a deeper understanding of the UHNW consumer, specifically in the EMEA region. “The research shows that trends and the economic climate in some EMEA countries are stimulating alternative investments such as real estate in these local markets,” he said. “These opportunities are exciting and we are proud to be able to provide an in-depth look at them.”
Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors. Its award-winning research and thought leadership are regularly cited by the world’s media such as CNBC, Financial Times, Thomson Reuters and BBC.
The Sotheby’s International Realty network currently has approximately 17,000 sales associates located in approximately 800 offices in 61 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world.
Locally, LIV Sotheby’s International Realty (LIV SIR) has 10 office locations in the Denver Metro and surrounding areas, including Boulder, Castle Pines, Cherry Creek, Denver Tech Center, Downtown Denver, Evergreen and the resort communities of Breckenridge and the Vail Valley, and is the exclusive Board of Regent for the Who’s Who in Luxury Real Estate.
Scott Webber, president of LIV SIR, attended the EMEA conference in Rome held April 27 to 29, 2015, to coincide with the launch of the new Rome Sotheby’s International Realty office and to further leverage the power of the global SIR network. Ninety participants, including owners and senior management, represented 27 affiliated companies across 19 countries within the EMEA region
For more information, contact LIV Sotheby’s International Realty public relations manager, Brittanny Havard, at 303.486.3738. To service all of your real estate needs visit www.livsothebysrealty.com.
About LIV Sotheby’s International Realty
LIV Sotheby’s International Realty, the exclusive Board of Regent for the Who’s Who in Luxury Real Estate, has 10 office locations in the Denver Metro and surrounding areas, including Boulder, Castle Pines Village, Cherry Creek, Clayton Street, Denver Tech Center, Downtown Denver, Evergreen and the resort communities of Breckenridge and the Vail Valley. For more information call 303.893.3200. To service all of your real estate needs visit www.livsothebysrealty.com.