The world’s centa-millionaires – that’s those worth $100m or more – are spreading further east according to a new report
Knight Frank’s Wealth Report reveals that while Western Europe currently boasts 14,000 of the world’s 63,000 “über-rich”, by 2016 Asia – which currently has 18,000 centa-millionaires – will have extended its lead to 26,000.
“The number of super-rich across Africa and South and Central Asia will double by 2016, both up 100 per cent, while Brazil is set to increase at twice the rate of the USA, up by 59 per cent compared to 23 per cent.
“Much of their cash continues to be investment in luxury residential property which remains a safe, stable alternative to other investment classes,” said Knight Frank in a statement.
The world’s 63,000 centa-millionaires are thought to be worth $40 trillion in total, by 2016 there will be an estimated 86,000.
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Despite the continuing growth of wealth in the emerging markets, John Hitchcox chairman of London-based property firm Yoo believes luxury real estate in the west will maintain its value.
“Emerging markets are embracing western design and expertise and we’re seeing increasing demand for sophisticated property that allows people to live better through great design.
“People are also attracted to established locations with stable governments that offer long-term security against political instability,” said Hitchcox.
“Those buying our properties want to live alongside like-minded people. It’s all about a strong sense of community where apartment blocks have amazing shared areas that reflect their own personalities or homes that are based in amazing grounds, in desirable locations,” he added.
Meanwhile Giles Baker of property and investment firm Raven Russia Plc pointed to areas such as the Cotswolds as mainstays of invaluable British real estate.
“In these volatile economic times it’s unsurprising that real estate continues to be a global hedge against further troubles.
“But luxury developments like The Lakes in the Cotswolds offers a slice of something no amount of money can buy in Asia or America. Quaint, yet sophisticated living where families come first is becoming a growing backdrop to the hectic work-life for the wealth-driven elite,” said Baker.