average Price of square meter in London : more than 35 000 € ! It is, however, well in the british capital, where real estate prices have reached record levels, as the richest people in the world invest the most. It is this that reveals the real estate network Barnes, a specialist in luxury, who tackles the subject with the american firm Wealth X.
The super-rich ? 212 615 households in the world, which have, each, a heritage of more than 28.2 million euros. They have an acronym : the UHNWI, for ” Ultra-High-Net-Worth Individuals. They were 100 000 in 1995, and could be 318 000 in 2020.
” Global real estate prestige “
Gathered all together, these great fortunes have a heritage of more than 28 billion euros. Almost 9 % are invested in the stone. The wealthiest of these super-rich are even large investors : the 21,000 most rich have at least five properties !
The improvement of means of transport, the progress of the internet and the internationalization of the business world ” have contributed to the acquisition of immovable property “, the study, called ” The global real estate prestige “.
The top 5 of the super-rich
Five cities have the preference of these rich buyers. Behind London, which is the city’s most coveted, and where the luxury real estate reached 50 000 to 60 000 € per square metre, there are New York, Sydney, Tokyo, and Paris.
In the French capital resident 3 475 super-rich. The prices are much more affordable than in London and New York, but high-end houses appear all the same 10 000 € per square metre, and the property “premium” of more than € 7.5 million, 23 000 €.
A risk investment limited
Why invest in real estate ? For these very rich of the world, it is a way to diversify their portfolio and protect against inflation, while offering ” unique opportunities ” travel and leisure “, emphasizes the network Barnes. All the more that high-end real estate is considered an investment with limited risk : the prices of luxury real estate remains stable even when the rest of the market slowed down or regressing. ” The real estate of prestige do not suffer a loss of value. “
What motivates those buyers fortunate in the choice of their acquisition, ? Beyond the financial investment, the purchase of a residence must give them the opportunity to carry out their business. And, in particular, to move easily. Because 64 % of these super-rich are self-made men or women : only 19 % have inherited part of their fortune.
Close to schools
The education of children also matters. The very wealthy choose their investment ” in the vicinity of schools or of renowned universities, in order to be close to their children or grandchildren, while providing a pleasant living environment during their studies “. It is a choice ” reassuring “ because ” they put their families in safety, while generating a capital gain on their real estate investment “.
You don’t buy a property that does not please. On the contrary. There is a ” emotional “ in the choice that is made. A beautiful view of the Eiffel Tower, the reputation of a neighborhood (XVIe arrondissement in Paris, for example) have their importance. We also love the proximity to museums, theatres and gourmet restaurants and luxury stores. The very wealthy enjoy, also, the building in which they are investing has been inhabited by Hollywood stars. It is chic.