Where ultra-rich Asians will invest in property in 2019

Around 23 percent of ultra-high net worth individuals (UHNWI) around the world plan on investing in property in their home countries this year, while 27 percent mull investing abroad, data from Knight Frank’s Attitudes Survey revealed.

Some 33 percent of UHNWIs in Asia alone plan to invest in property in their countries of residence for the period 2019-20, according to the survey, part of the consultancy’s newest Wealth Report. Around 27 percent of ultra-wealthy individuals in the continent also plan to invest outside their countries of residence.

Respondents to the Attitudes Survey covered 600 private bankers and wealth advisers who between them manage over USD3 trillion of wealth for UHNWI clients.

The sanguine prospects for property investment this year squares with data showing that a majority of UHNWIs expect their wealth to increase in 2019. However, only two-thirds of wealth advisers in Asia expect their clients’ wealth to increase this year, versus four-fifths of wealth advisers in the US.

Both Asian and American respondents showed some apprehensions over political headwinds and other challenges to wealth accumulation though. Some 65 percent of Asian respondents and 59 percent of those in the US told Knight Frank that local conditions would make it more difficult to create and retain wealth in the future.

A staggering 74 percent of UHNWIs in the Middle East own second homes outside their countries of residence, followed by Latin America with 65 percent and Europe with 49 percent. An unbeatable 46 percent of Middle Eastern UHNWIs also plan on investing in property outside their country of residence in 2019-20.

Education has been a significant driver for purchases of first and second homes globally, in addition to security and luxury indicators like the number of five-star hotels and the quantity and quality of leading restaurants.