We are always excited by the publication of Knight Frank's report into the High and Ultra High Net Worth sector. It provides fantastic insight into the sector where we also specialise and is widely acknowledged as a voice of authority.
You can read the full report here and we have highlighted some salient factors below.
It isn't a surprise to learn that COVID has played a part in some of this year's findings. The key word is accelerate, as many trends previously predicted to have developed over the next few years are happening much faster than anticipated.
Key points from this year's report are as follows.
- Expansion in the UHNW sector, particularly in Asia with growth of 12%. Interest rates remaining low has increased the cost of assets and created an increase in the number of UHNW individuals of around 2.4% globally.
- International travel has dropped by over 80%. Whilst not a surprise, and with a widespread downturn reported throughout 2020, this has led to a reduction in the acquisition of property outside the buyer's main country of residence. It is anticipated that this will recover quickly as lockdown measures ease, with London being a sought after location – often linked to educational placements for children.
- UHNW property prices have increased during the pandemic – relocating away from towns and cities and a desire for increased space and privacy have had a positive impact on prices.
- The market for luxury assets has seen significant growth. Items flagged include handbags (up by 17%), fine wine (13%) and classic cars (6%).
- London remains the global leader in terms of prime real estate, tied with New York and Paris in third place. The remaining cities around the world show a pattern resembling the London Underground rail map using the factors of wealth, investment and lifestyle although longer term forecasts indicate that this may not remain the case.
Lockton's own experience bears out much of this research. Our existing clients are acquiring passion assets and reviewing the value of existing collections and we are being introduced to new customers by those who recognise our abilities and expertise and clients who like our blend of agility and knowledge.
We are able to produce solutions for homes, collections and other valuable assets wherever they are located.
If you are considering a review of your existing portfolio, then please contact us. Our team includes experts across all sectors, including your home, motor, collectables or even your family office structure's needs.