According to Knight Frank's 2023 Wealth Report, investors with a net worth of over $30 million predominantly invest in real estate. The report reveals that about 32% of their capital goes into purchasing primary residences and additional homes.
Investment Distribution of Ultra-High Net Worth Individuals.
Investment Area | Percentage of Total Wealth |
---|---|
Main or Secondary Residences | 32% |
Other Real Estate Assets (Offices, Warehouses) | 14% |
Stocks | 20% |
Direct Real Estate Properties or REITs | 22% |
Private Equity and Venture Capital | 6% |
Luxury Items (Art, Classic Cars) | 3% |
Other Investments | 3% |
The study involved more than 500 asset managers representing family offices and private banks, overseeing a total capital of $2.5 trillion. On average, each of these investors owns about 3.7 real estate properties.
Stocks also form a significant part of their portfolio, accounting for around 18%. Investments in commercial real estate, including offices and warehouses, make up 14% of their assets. The interest in private equity and venture investments, involving startups and companies before their IPO, is also notable, constituting 6% of the total investment volume.
Luxury investments, such as art, classic cars, and wines, also hold a meaningful position. These passion investments make up about 3% of the wealth of these ultra-rich individuals, with nearly 60% planning to increase their art collections soon.
The number of ultra-wealthy individuals is on the rise: about 579,000 such investors were recorded worldwide in 2022, and this number is expected to increase to 744,000 by 2027, marking a 29% growth.
These figures underscore the growing interest in luxury real estate, stocks, and luxury items. With these trends, a heightened demand for elite real estate and other prestigious assets can be expected.