Knight Frank 2019 Wealth Report Released

March 12, 2019 by Michael Light

Categories: Market Trends

The Knight Frank Wealth Report 2019

 

Knight Frank Residential, the largest real estate consultancy firm in the world, in connection with its exclusive partner Douglas Elliman Real Estate, the #1 Brokerage in Manhattan and Miami Beach and top luxury firm in the U.S., just released their 2019 Wealth Report, which reflects the global perspective on prime property and investment, including key wealth trends and property hotspots around the world. The Wealth Report examines investment trends covering almost 100 countries and 100+ cities, including what US$1M buys you around the world.

The 2019 Wealth Report gives our clients insight on what the next 12 months has in store for us. The multitude of global, economic and political issues continue to be unresolved and have become even more complex in many countries. Nevertheless, we remain optimistic about 2019 because while there still may be challenges, there will be considerable opportunities for many as the markets continue to shift. In this year’s edition of The Wealth Report, we highlight the residential and commercial markets around the globe that offer great investment opportunities for those looking to purchase real estate.


DOWNLOAD: 2019 Wealth Report


Key Takeaways From The 2019 Wealth Report:

  • The global Ultra-High-Net-Worth Individuals (“UHNWI”) population is forecast to rise by 22% over the next 5 years, meaning that an additional 43,000 people will be worth more than US$30 Million by 2023.
  • 2019 will be the year the number of US$ millionaires globally exceeds 20 million for the very 1st time.
  • Whisky storms to the top of DE | KF’s Luxury Investment Index with 40% annual growth.
  • Existing UHNWI’s expect their wealth to increase over the next 12 months, with confidence most marked in the U.S. where 80% expect to be better off.
  • 63% of the world’s ultra-high-net-worth population saw an increase in their wealth in 2018.
  • Home to around 33,300 millionaires, we expect Miami to record prime price growth of 5% in 2019, outperforming a number of other key U.S. cities. Prices are rising from a comparatively low base, new investment in the form of the Brightline train is boosting the local economy and Florida’s low tax status may spur some U.S. residents to move to the sunshine state in the wake of the new State and Local Tax (SALT) deductions.
  • Did you know that Miami is the top city in the U.S. to buy luxury real estate, based on value proposition? Check out the graph below for a quick look at the relative value that Miami offers compared to other major cities in the U.S. and around the world.

How many square feet/square meters can US$1Million buy you in the top luxury markets in the world?

Below is a list of the top 20 luxury market cities worldwide broken down into square feet. Notice Miami’s location on the chart, which shows the value proposition of buying real estate in Miami instead of other top destination cities. For instance, you only get 334 square feet of space in NYC per US$1Million compared to 1,001 square feet in Miami. The value proposition for tropical Miami coupled with the fact that Miami has reinvented itself as a creative tech hub, an international cultural destination, a financial banking hub and a low tax status destination….screams….BUY REAL ESTATE IN MIAMI!

2019 Wealth Report Relative Values

Relative Values – How much US$1 Million will buy in key cities around the globe

  1. Monaco: 172 sq/ft (16 sq/m)

  2. Hong Kong: 237 sq/ft (22 sq/m)

  3. New York: 334 sq/ft (31 sq/m)

  4. London: 334 sq/ft (31 sq/m)

  5. Singapore: 388 sq/ft (36 sq/m)

  6. Los Angeles: 420 sq/ft (39 sq/m)

  7. Geneva: 441 sq/ft (41 sq/m)

  8. Paris: 495 sq/ft (46 sq/m)

  9. Sydney: 560 sq/ft (52 sq/m)

  10. Shanghai: 614 sq/ft (57 sq/m)

  11. Beijing: 721 sq/ft (67 sq/m)

  12. Tokyo: 721 sq/ft (67 sq/m)

  13. Berlin: 786 sq/ft (73 sq/m)

  14. Miami: 1,001 sq/ft (93 sq/m)

  15. Melbourne: 1,044 sq/ft (97 sq/m)

  16. Mumbai: 1,076 sq/ft (100 sq/m)

  17. Istanbul: 1,173 sq/ft (109 sq/m)

  18. Dubai: 1,539 sq/ft (143 sq/m)

  19. Cape Town: 1,905 sq/ft (177 sq/m)

  20. Sao Paulo: 2,153 sq/ft (200 sq/m)


Objects of Desire for 2019 Go Hand-In-Hand With the Top Sales of 2018

Below is a graph highlighting the top objects of desire for 2019 based on DE | KF’s Luxury Investment Index, which shows that rare whiskey is the hot new trend, as it is expected to have 40% annual growth. Further, trends are usually forecasted based on the past, so it is important to note that in 2018, a bottle of Macallan 1926, hand painted by Michael Dillon sold for US$1.5 Million, making it the most expensive bottle of whiskey to ever sell. WOW!

2019 Objects of Desire - 12 Month Change in Asset Value & Top Sales of 2018

2019 Objects of Desire – 12 Month Change in Asset Value & Top Sales of 2018


Knight Frank and Douglas Elliman Released Additional Reports Providing Insight on Other Key Takeaways from our Global Market.

Urban Futures 2019

This is the 1st edition of Urban Futures, which is a report on the increasingly prominent topic of housing affordability around the world. Although this has become a critical issue for cities all around the globe, it is often viewed not on the forefront of our discussion. This Urban Futures report lays out an overview of solutions that are currently being implemented in some of the leading cities around the world and gives insight to those city authorities that have not yet begun this process.

DOWNLOAD: Urban Futures 2019

The Global Ultra-Prime Market 2019

This inaugural edition of The Global Ultra-Prime Market 2019 is a report showcasing the global assessment of ultra-prime residential markets. This information is based on market data gathered from across the world to confirm the actual extent of the world’s top-tier residential locations.

DOWNLOAD: The Global Ultra-Prime Market 2019

Prime Global Forecast 2019

The Prime Global Forecast is a resourceful report providing insight on how the economic landscape around the globe is changing and its effects around the world. As monetary policy normalizes and geopolitical jitters increase in many countries, we must remember with risk, comes great opportunity.

DOWNLOAD: Prime Global Forecast 2019


If you are interested in the local real estate market in Miami and Miami Beach, please contact Broker Michael Light. Michael is the Senior Director of Luxury Sales and a member of the exclusive Sports & Entertainment Division at Douglas Elliman Real Estate. You may reach Michael directly at (786) 566-1700 or michael@miamiluxuryhomes.com.


 


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