19th edition 2025

The global perspective on

prime property and investment
knightfrank.com/research
19th edition Definitions and data How we chose our cover

EDITOR HNWI

The global perspective on prime property and investment

Liam Bailey High-net-worth individual – someone with a net worth of
US$1 million or more. In our Wealth Sizing Model (page 14),
MANAGING EDITOR we define HNWIs as those with a net worth of at least
Sunny Creative US$10 million.

MARKETING UHNWI
Sally Ingram Ultra-high-net-worth individual – someone with a net
worth of US$30 million or more. In our Wealth Sizing Model
PUBLIC RELATIONS (page 14), we define UHNWIs as those with a net worth of
Emma Cotton at least US$100 million.

DESIGN & PRIME PROPERTY

DIRECTION The most desirable and most expensive property in a given
Winkreative location, generally defined as the top 5% of each market by
Quiddity Media value. Prime markets often have a significant international

19th edition — 2025

bias in terms of buyer profile.
19th edition 2025
The global perspective on
prime property and investment

FRONT COVER
knightfrank.com/research

Your partners in property

Birch Creative Ltd THE PIRI 100 TWR25_Cover_FINAL.indd 1-3 04/02/2025 20:31

Now in its 18th year, the Knight Frank Prime International

PRINT Residential Index tracks movements in luxury prices across This year’s cover underscores the connections
Optichrome the world’s top residential markets. The index, compiled between global markets and the ability of investors to
using data from our research teams around the world, covers
engage with opportunities anywhere in the world. By
ALL KNIGHT FRANK major financial centres, gateway cities and second-home
CONTACTS hotspots – both coastal and rural – as well as leading luxury placing the globe inside a landscape, the illustration
firstname. ski resorts. not only highlights our ability as advisors to bring the
familyname@ world to our clients but also emphasises the increasing
knightfrank.com THE KNIGHT FRANK WEALTH SIZING MODEL importance of environmental considerations as the
The model, created by our data engineering team, measures next generation begins to create and manage wealth
the size of wealth cohorts globally.
portfolios. The illustration conveys the scale of both
the uncertainty and the prospects that investors
face. As we note in this edition, while volatility in
economics and geopolitics appears to rise inexorably,
the prospects for growth remain compelling for those
brave enough to look beyond the risks.

FIND OUT MORE

Knight Frank Research provides a range of market-
leading insights through the year covering all
major global real estate sectors and markets. To
get the best of Knight Frank straight to your inbox,
visit knightfrank.com/ResearchNewsletters

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Welcome
It is my pleasure to introduce The Wealth Report
2025, our 19th edition.
In last year’s report, we revealed a rise in wealth
creation globally, led by the US and the Middle East.
We also confirmed continued demand from private
investors for real estate, with around a fifth looking
for residential property and a similar proportion
This year’s edition of The Wealth Report looking at commercial opportunities.
This year our new survey of family offices –
finds private investors keen to broaden The Knight Frank 150 – provides a look at how
their exposure to real estate, a sector they demand for property is evolving, with 25% of
family offices with existing residential portfolios
view as offering both growth potential and considering further purchases, and 44% looking
wealth preservation to expand their exposure to commercial property
over the next 18 months.
But despite the positivity around property, the
year ahead presents plenty of challenges. Debt
costs are higher than many of us would like, and
the pace of interest rate cuts remains uncertain. Yet
economic growth, likely super-charged by the US,
will continue to be a huge support for demand for
best-in-class assets, whatever the sector.
To provide you with a rounded view of the
private investment landscape, we have assessed the
current state of global wealth creation, the desire for
and limits to the mobility of this wealth, investment
RORY PENN
opportunities across commercial and residential
HEAD OF LONDON RESIDENTIAL SALES
& CHAIR OF PRIVATE OFFICE real estate and the outlook for the top end of the
property market. We also take the pulse of luxury
investment markets and consider the impact of
younger investors and their evolving priorities.
It is not always as easy to gain exposure to
property as it is to other assets. In this year’s report,
private investors confirm that barriers continue to
limit their ability to invest in or develop real estate.
These challenges underpin our commitment to
providing you with the support you need to take
advantage of these opportunities.
Our Private Office network operates from
London, New York, Dubai, Singapore and Hong
Kong. With our team supported by a cross-sector
and global private capital offering, we are well
placed to help you achieve your goals.
Please do get in touch. The Private Office and
the wider Knight Frank network would love to
be of assistance.

“It is not always easy

to gain exposure
to property. These
challenges underpin
our commitment to
providing you with the
support you need”

THE WEALTH REPORT 1

The Wealth Report’s unique data,
expert insights, thought-provoking
interviews and future views
help shed light on the key issues
affecting how you live, work,
invest and give back

Our contributors

WILLIAM COULMAN PATRICK GOWER WILL MATTHEWS

An associate at Knight Frank, An experienced communications Will is Head of UK Commercial
data expert Will analyses consultant, Patrick provides Research at Knight Frank
global trends, providing content strategy, research and and a partner in our capital
insights into property markets thought leadership for global markets research team
now and in the future brands, with a particular interest in
finance and property

FAISAL DURRANI FLORA HARLEY ANDREW SHIRLEY

Faisal is Head of Research As Knight Frank’s Head of ESG Andrew is the founder of
for Knight Frank Middle East, Research, Flora focuses on AS Editorial, a boutique
covering all our markets in the understanding the impact of content and design agency
Middle East and North Africa ESG across property sectors

KATE EVERETT-ALLEN CHRISTINE LI BEN WHATTAM

As Knight Frank’s Head of Christine is Head of Research Co-founder of the Modern
European Residential Research, for Knight Frank Asia-Pacific, Affluence Summit and venture
Kate analyses and reports on curating and co-ordinating partner at independent
key residential market trends, regional trend forecasts for consultancy Zag, Ben specialises
offering insights for investors clients across the commercial in supporting brands to connect
and industry professionals and residential sectors with the next generation of wealth

2 THE WEALTH REPORT

MONITOR INVESTMENT LUXURY

28 The Knight Frank 150 54 PIRI 100

Results and insights from our The global and regional highs
survey of family offices and lows from our Prime
International Residential Index
32 One last roar
How generational shifts are driving 62 Hottest housing markets
family office investment strategies Our round-up of the locations
to watch in 2025
34 Commercial awareness
The sectors – and investors – 66 Through a glass, sparkly
driving commercial real What a wine list reveals about
estate markets luxury spending trends
06 The five-year view
36 Sectors to watch 68 Yacht spots
How world events have driven
Five key opportunities for those A wave of alternative destinations
property prices in Dubai and Miami
investing in commercial property is redrawing the yachting map
08 Threats and opportunities
70 The great luxury correction
The key takeaways from this edition
The results of this year’s Knight
of The Wealth Report
Frank Luxury Investment Index
10 The risk landscape
72 Standout sales
The biggest threats facing the world
The stellar lots grabbing
economy in 2025 and beyond
the headlines at last year’s
auction sales
AFFLUENCE
74 The power of online
How digital sales are democratising
14 Global wealth expands
the art market
Our Wealth Sizing Model reveals
where wealth is growing fastest
38 Keeping it real
Our mythbuster separates
commercial property fact
from fiction

40 Message in a bottle
Our global round-up of
vineyard values

44 The evolution of ESG

How the changing
sustainability landscape is
shaping investor priorities
78 Collectors’ corner
Five collectible categories to watch

80 Databank
The numbers behind
The Wealth Report
16 America first
A deep dive into the trends behind
84 Bigger, bolder, beyond
our global wealth data
Why size really does matter –
in real estate
17 How to build a billionaire
What it takes to make a billion
today – and tomorrow

20 Generation Wealth
Our Next Generation Survey shines
a spotlight on the new affluent class

24 Digital nomad detox 48 Magnetising affluence

The challenges and barriers Creating real estate propositions
limiting global mobility that resonate

THE WEALTH REPORT 3

Monitor
The events and trends shaping 06 THE FIVE-YEAR VIEW
How world events have driven property
the global wealth landscape – prices in Dubai and Miami

past, present and future 08 THREATS AND OPPORTUNITIES

The key takeaways from this edition
of The Wealth Report

10 THE RISK LANDSCAPE

The biggest threats facing the world
economy in 2025 and beyond
 Over the past five years, geopolitical and economic turmoil have reshaped global property markets.
US$3m

Amid the Covid-19 pandemic, inflation and rising interest rates, markets such as Miami and Dubai have
thrived, driven by shifting work, tax and lifestyle patterns. According to our PIRI 100, a US$1 million
luxury residential property investment in January 2020 would have grown to US$1.9 million in Miami
and US$2.7 million in Dubai by 2025. Our timeline sums up a tumultuous half decade

The five-year view

US$2.5m

30 Jan 2020 31 Dec 2020 16 Dec 2021 24 Feb 2022

The World Health Organization Despite pandemic dislocation, The Bank of England is the first Russia’s invasion of Ukraine
declares Covid-19 a public health The Wealth Report confirms an of the major central banks to marks a significant escalation in
emergency of international increase in the world’s UHNWIs, announce an interest rate hike, the conflict that began in 2014
concern. By March, its status has fuelled by government stimuli. reversing two years of near-zero with the annexation of Crimea,
been upgraded to a pandemic. Asia sees the most significant rates and triggering a race to raising geopolitical risks in
upswing, with a 16% rise. defeat surging inflation. Europe to a post-war high.
US$2m

15 Mar 2020 23 Mar 2021 31 Dec 2021

In response to the economic Chinese container ship the Ever As asset prices surge, investors
impact of the pandemic, the Given runs aground in the Suez appear to shrug off early signs
US Federal Reserve lowers its Canal. The resulting disruption of inflation. The Wealth Report
benchmark interest rate to near highlights the vulnerability of global reveals a 9.3% increase in the
zero. This was maintained until supply chains, and threatens to number of UHNWIs, with luxury
early 2022. further boost inflation. house prices up 8.4%.
US$1.5m

Dubai
7 Nov 2020
Value of investment →

Democrat Joe Biden defeats

Donald Trump and is officially
declared 46th President of the
US, following a bitterly fought
and often controversial contest.
Miami
US$1m

2020 2021 2022

6 MONITOR THE WEALTH REPORT

 US$1m invested in prime
residential property in
1 Oct 2022 Apr 2023 31 Dec 2023
Dubai in January 2020 on
Driven by rising energy prices India overtakes China as the The Wealth Report records a average rose to US$2.7m
amid geopolitical tensions world’s most populous country, 4.2% rise in the global UHNWI by January 2025
following Russia’s invasion with far-reaching implications population as asset prices
of Ukraine and pandemic for its economy, society and rebound, with prime residential
disruptions, annual inflation in global influence. values increasing by 3.1%.
the eurozone reaches 11.5%.

7 Dec 2022 18 Sep 2024

China officially announces the The Federal Reserve cuts
end of its zero-Covid policy, the benchmark federal funds
implementing sweeping rate by 0.5%. This significant
changes to revitalise the reduction is the first since
economy and attract foreign March 2020 and the largest
investment after nearly three non-Covid era cut since 2008.
years of stringent restrictions.

US$1m invested in prime

residential property in
Miami in January 2020 on
average rose to US$1.9m
by January 2025

31 Dec 2022 7 Oct 2023 5 Nov 2024 31 Dec 2024

Surging inflation and rising Significant conflict reignites Former Republican President Economic and geopolitical
interest rates wipe US$10.1 in the Middle East, leading to Donald Trump, seeking a non- volatility hasn’t weighed on
trillion off global wealth portfolios heightened geopolitical risk consecutive second term, wins our outlook for luxury housing
through 2022, according to within the region and beyond. a decisive – and historic – victory markets – we forecast price
The Wealth Report. Despite against Democrat Vice President rises in 2025 across nine out
market disruption, the Knight Kamala Harris. of 10 markets.
Frank Luxury Investment Index
jumps by 16% as investors
target tangible assets.

2023 2024

THE WEALTH REPORT MONITOR 7

Threats and
past two years. Inflation has not yet been
subdued in the developed world, but the
consensus is that rates will gradually fall

opportunities
from here.
Any easing of rates will be
particularly welcomed in the real estate
world. Higher debt costs and a sharp rise
in fixed income returns have contributed
to a near 60% drop in investment
volumes across global property markets
since the market peak in 2021. The
most recent data indicate a significant
slowdown in the pace of this decline,
The Wealth Report’s editor Liam Bailey shares his with investment volumes in the second
key takeaways from this year’s edition half of last year rising year on year.
This recovery underscores one of
the key findings from this year’s report
– there is a huge, sustained interest
in real estate investment from private
capital, with 44% of global family offices
In each of the past 18 editions of ever, and investor allocations are moving indicating they are looking to increase
The Wealth Report, it has been tempting at a record pace in reaction to the risks of allocations to the sector. A brief appraisal
to characterise the investment landscape bubbles forming in financial markets. of two key property markets confirms the
as one of unprecedented volatility That said, although tariffs risk extent of the need for this investment.
and risk. The first two months of 2025 denting economic expansion and If you want to occupy a new office
have continued the same narrative: the complicating the inflation narrative, headquarters in central London right now,
promised model of AI disruption has most economists predict another year of you’ll need to get in line. Knight Frank
itself been disrupted, geopolitical power relatively healthy global GDP growth. We counts 62 live requirements, each looking
seems to be shifting more rapidly than might even see growth exceed that of the for upwards of 50,000 sq ft. Waits of up to
three years to occupy space are common.
As a result, a growing number of occupiers
are bringing forward their requirements,
well ahead of lease expiry, to be assured of
the right space.
For residential property, our data
confirm that every G20 nation has failed
to meet its annual housing target for
the past five years. This has resulted in
growth in both house prices and rents,
stretching affordability. The opportunity
for investment in living sectors is huge
and growing – the market share for build-
to-rent accommodation remains 1% or less
of all rental stock in cities such as Tokyo,
Paris and Sydney.
Even with elevated global risks, for
me the standout takeaway from this
year’s report is the breadth of investor
opportunities. From growing luxury
residential markets, through established,
as well as new, commercial property
opportunities, to the next big collectible
sectors, the prospects for growth are
compelling for those willing and able to
look beyond the risks.

44%
Global family offices indicating
they are looking to increase
allocations to real estate

8 MONITOR THE WEALTH REPORT

The big themes (page 40), yachts (page 68), and prime
residential markets (page 54) are being
reshaped by changing weather patterns
and environmental concerns. The future
of luxury markets and commercial real
THE INDISPENSABLE NATION estate is being defined by sustainability
The US remains the undisputed leader and climate resilience.
in global wealth creation. Our Wealth
Sizing Model confirms that nearly DEMAND FOR REAL ESTATE IS RISING
40% of the world’s wealthy reside Despite a sharp fall in investment volumes
here (page 14). No other country is as from the 2021 peak, we confirm an ongoing
successful at creating homegrown desire for property from private capital.
wealth or attracting migrant UHNWIs. While direct real estate ownership already
For luxury homes, private jets and super- accounts for 22.5% of the typical family
yachts, what happens in the US shapes office’s portfolio, more than four in 10
global markets. are looking to grow this allocation over
the next 18 months. Sectors in demand
THE NEXT WEALTH POWERHOUSE? are led by living, logistics and luxury
While still small in global terms, Africa residential. In addition to this desired
is rapidly emerging as a growth hub expansion of investment portfolios,
for wealth creation, with an increasing nearly a quarter of family offices that
number of individuals joining the US$10 manage private residential portfolios are
million-plus wealth club. Although North considering new acquisitions (page 28).
America and Asia remain central to global These requirements are set to feed through
affluence, Africa’s young population, to positive price growth in key luxury
rich natural resources and improving residential markets in 2025 (page 61).
infrastructure position it as a future
leader in wealth generation (page 14). BUYING POWER IS SHIFTING
Moves in market pricing and currencies
MOBILITY IS SHAPING have shifted the landscape of luxury
WEALTH DISTRIBUTION property. Our review of changes
The mobility of wealth is only set to to buying power in our graphic (page 56)
increase. This theme is fuelling super- confirms that while London offers savings
charged growth in some housing markets, of 43% for dollar-based buyers compared
with Miami, Palm Beach and Aspen in the with pricing in 2014, other markets have
US serving as prime examples (page 54). seen equally dramatic falls in relative
The ease with which wealth can move is buying power, with some weakening by
driving efforts to attract it and attempts more than 50% over the period.
to control it (page 24). While private jets
and yachts should promote mobility, we
LUXURY ON PAUSE
delve into some surprising limitations
Our roundup of luxury collectible
(page 84).
performance (page 70) reveals that values
for a basket of 10 leading assets fell by an
THE GREAT WEALTH
average of 3.3% in 2024. The art market
TRANSFER ACCELERATES
underperformed, with values down
Baby boomers still control the majority
by 18.3%, while wine and whisky also
of global wealth, but the transfer to
younger generations is well underway. contributed to pulling our overall luxury
This year’s Next Generation Survey and index into negative territory. Despite the
the Knight Frank 150 survey of family market correction in 2024, we note key
offices both highlight future wealth and growth prospects across the collectibles
market (page 78).
investment priorities. Despite the US
administration’s pivot away from ESG,
“The mobility of wealth
we expect the focus on purposeful and NOT FORGETTING... is only set to increase.
sustainable investment will continue to In our effort to provide the most
grow as younger generations make their comprehensive picture of wealth and This theme is fuelling
mark (page 20). investment trends, this year we have also super-charged growth
made room to explore the techniques
ENVIRONMENTAL CONCERNS WILL used by property developers to attract and in some housing
RESHAPE WEALTH retain the world’s most valuable workers
and consumers, examine the rising power
markets, with Miami,
On the theme of sustainability, concerns
about climate change are increasingly of online luxury sales, highlight the big Palm Beach and Aspen
influencing the decisions of the wealthy,
impacting everything from real estate
collectible sales of the year, and describe
what the billionaire of tomorrow will look
in the US serving as
to luxury investments. Vineyards like. All this and much more... prime examples”

THE WEALTH REPORT MONITOR 9

The risk landscape
STUBBORN INFLATION
Economists tend to agree that inflation is
almost tamed, but a couple of percentage
points can make a big difference in key
sectors, particularly real estate.
“Extend and pretend” strategies –
where lenders extend loan periods in
the hope of avoiding having to recognise
losses – hinge on rate cuts, but potential
inflationary shocks lie around many
corners. Trump’s plan to cut taxes while
deporting large numbers of workers
could be inflationary, as could conflict
in the Middle East. Meanwhile, many
governments have expansionary fiscal
policies and wages continue to grow,
despite slowing growth.
“None of this is going to get us back
to 7%, 8% or 9% inflation, but it could get
stuck at 3% or 4%,” Shearing says. “That’s
important because I think at 2% or 3%,
you can still get rate cuts next year, but
if you’re at 3% or 4%, you can’t.”
Against a backdrop of conflict, financial turmoil
and President Trump’s return to power, we assess FISCAL ILL-DISCIPLINE
The private sector was historically
the biggest threats facing the world economy perceived as the bigger risk to financial
stability, but across G7 economies
government debt servicing costs are
increasing – debt loads in many advanced
The world economy has had a good run. since the 1980s. Given these competing economies stand at 100% of GDP or more.
Global GDP surpassed its pre-pandemic uncertainties, what are the most likely The brief premiership of Liz Truss
peak in mid-2021 and has continued to threats to growth? in the UK, and its aftermath, illustrated
expand at around 3% every year since. how markets can punish governments
Will 2025 be the year that run ends? A TRADE WAR guilty of fiscal ill-discipline – and the
It’s possible, perhaps even likely. The Almost two-thirds of business leaders risks are rising. No candidate is more
US has a new, volatile president, a man recently surveyed by Oxford Economics vulnerable than the US, where national
inviting trade wars on multiple fronts. believe that a trade war poses a very debt exceeded US$36 trillion in January,
Inflation isn’t quite tamed. Government significant risk to the global economy surpassing its GDP and marking an
deficits appear out of control. Stock over the next two years. historic high. More than half of those
market valuations are inflated. War is During his first month in office, US responding to a survey in October by the
ongoing in various theatres, and could President Trump announced 25% tariffs US Federal Reserve survey flagged fiscal
spread to others. on Canada and Mexico, before granting debt sustainability as a salient risk, up
“What might be deemed to be a both a month’s reprieve. The President from 40% just six months ago.
plausible risk has expanded massively levied another 10% on Chinese goods, “It’s entirely conceivable that we could
over the past five years because of the to which China responded with its get to the next presidential election with
pandemic, because of the war in Ukraine, own tariffs. The situation will remain both sides talking about continuing to
because of Trump and because of the unpredictable, hinging on factors run big deficits,” says Ben May, Director of
shifts in politics,” says Neil Shearing, spanning the performance of financial Global Macroeconomic Research at Oxford
Group Chief Economist at Capital markets, the trajectory of the US Economics. “Whether that happens or
Economics. “If we’d said 10 years ago, economy, the flow of illegal drugs into not, in the end, comes down to whether
there’ll be a global trade war, war in the US and Trump’s unique approach markets let them.”
Europe, escalating US–China tensions to diplomacy.
and seemingly genuine threats to Taiwan, Still, US GDP will be 0.7% weaker
all these things would have seemed this year, even if Trump reaches key
implausible. That’s no longer the case.” exemptions with his North American
Understanding whether these risks counterparts, says Oxford Economics.
The outlook for Canada and Mexico will
“Inflation is almost
will matter from an economic perspective
presents another challenge. Last year, remain weak and, at the time of writing, tamed, but a couple of
despite regional conflict and major
disruptions to Red Sea shipping lanes,
the threat of tariffs hangs over Europe.
The crucial question for the global
percentage points can
oil price rises were relatively muted. economy will be how other nations make a big difference in
Similarly, the US S&P 500 has gained retaliate. “If they respond in a much
more than 20% for two consecutive years more aggressive way the whole thing key sectors, particularly
despite the steepest rise in interest rates escalates,” Shearing says. real estate”

10 MONITOR THE WEALTH REPORT

THE BUBBLE BURSTS price-to-earnings ratio of 29x. Investors A Chinese invasion of Taiwan, for
The January release of DeepSeek, a in these stocks are paying for companies’ example, where as much as 65% of the
Chinese-made AI model similar to Open profits for many decades into the future. world’s chip industry resides, would
AI’s ChatGPT, knocked US$1 trillion off The market is in bubble territory. present a larger risk than almost all
the value of AI-linked companies. Shares Whether 2025 will be the year that those listed above, but the likelihood is
in chip-maker Nvidia fell 17% in a day, bubble bursts remains uncertain. too difficult to gauge. Investors can only
wiping US$589 billion off its market value. Investors are often right about the hope that remains the case.
The Chinese model, apparently potential of transformative technologies,
developed at a fraction of the cost of but wrong about the time it can take to
its American-made rivals, undermined reach commercial success. The dotcom
two prevailing narratives that have boom and bust in the 1990s is a good
underpinned the sector’s sky-high example. Meanwhile, a loss of faith in one
valuations – that a single winner is likely industry bubble can shatter confidence in
to take most of the spoils, and that hugely entire markets. The S&P 500 is vulnerable
“Investors are often
expensive hardware and infrastructure to a correction. right about the potential
will be required to power its growth.
Nvidia and its peers quickly recovered THE GREAT UNKNOWNS of transformative
some of their losses as bargain hunters There are other risks, particularly the technologies, but
returned, but the saga highlighted how escalation of armed conflicts, though
exposed the American stock market has economists perceive the chances to be wrong about the time
become to a single sector. The largest 10
stocks in the S&P 500, many of which are
too remote, or hard to predict, to produce
forecasts. The same goes for pandemics
it can take to reach
AI-related, trade at a 12-month forward and natural disasters. commercial success”

THE WEALTH REPORT MONITOR 11

Affluence
The locations, sectors and 14 GLOBAL WEALTH EXPANDS
Our Wealth Sizing Model reveals where
demographic shifts driving wealth is growing fastest

the movement of wealth 16 AMERICA FIRST

A deep dive into the trends behind our
around the world global wealth data

17 HOW TO BUILD A BILLIONAIRE

What it takes to make a billion today –
and tomorrow

20 GENERATION WEALTH
Our Next Generation Survey shines a
spotlight on the new affluent class

24 DIGITAL NOMAD DETOX

The challenges and barriers limiting
global mobility
 Global
Wealth in flux
Change in US$10m+ populations by region
2023 vs 2024

wealth 5.2% 5.0%

expands 1.4%
The Knight Frank North America Europe Asia
Wealth Sizing Model
Middle East
In 2024, the fortunes of the wealthy
improved, with a 4.4% hike in the number Latin
of individuals worth over US$10 million. All America Africa Australasia
regions saw an uptick, but North America
led with growth of 5.2%. Future wealth
2.7%
1.5%
creation, especially in the ultra-wealthy
(US$100 million+) segment, is likely to be

4.7%
subject to a more activist regulatory and
tax response
3.9%
The world’s wealthy
US$10m+ US$100m+
% change
2023 2024 2028* 2024–2028* 2024

Africa 18,629 19,496 22,964 17.8% 1,464

Asia 814,133 854,465 928,722 8.7% 33.084

33,084

Europe 338,366 343,176 359,624 4.8% 16,268

Latin America 56,205 57,036 62,571 9.7% 2.413

2,413

Middle East 46,199 47,437 50,813 7.1% 4,696

Source: Knight Frank Research * Forecast

North America 922,247 970,401 1,026,684 5.8% 44.218

44,218

Australasia 47,521 49,367 51,983 5.3% 1,918

World
World 2,243,300
2,243,300 2,341,378
2,341,378 2,503,361
2,503,361 6.9% 104,060
104.060

14 AFFLUENCE THE WEALTH REPORT

 The story behind
Top 10 US$10m+ populations Share of
global the statistics
US$10m+
population
POWERING WEALTH CREATION
While the global economy slowed
through 2024, the resilience of the US
helped prop up investor confidence.
The trends powering wealth creation
in 2023, including growth in financial
markets led by equity markets and the
bitcoin run, continued. And despite
geopolitical tensions, resilient global
38.7% trade further contributed to growth.

THE AMERICAN CENTURY

At the US$10 million+ level, the US
is home to almost 39% of all wealthy
individuals, nearly twice the level of the
US China. In the US$100 million+ bracket,

905,413
the figure rises to over 40%. Despite our
forecast that Asia will outpace North
America in wealth creation over the
next four years, there is no realistic
challenge to US dominance. Outside of
stock valuations, the much-heralded
AI-powered boom has yet to arrive – if it
does, the US and China seem poised to
benefit more than any other country.

AFRICA TO OUTPERFORM
While North America and Asia lead the
narrative, we believe Africa is poised to
outperform in future wealth creation –
in growth, if not in absolute terms.
Chinese mainland 20.1% A fast-growing young population, rich
natural resources, rapidly improving

471,634
infrastructure, and significant foreign
investment provide strong foundations,
while the potential for significant growth
in consumption from an expanding
middle class is creating opportunities
for entrepreneurs across manufacturing

122,119
and services.

Japan 5.2% THE TAX RESPONSE

With many governments running record
deficits and accumulating significant

India
85,698 3.7%
debt, the growth of private wealth
presents a tempting target. Last year
saw the UK government announce the

69,798
end of the country’s 200-year-old non-
Germany 3% domiciled tax regime, and France also
made moves to target the wealthy. With
Canada 64,988 2.8% wealth growing faster than the economy
in most regions, this trend is likely to

55,667
continue. Opponents of wealth taxes
UK 2.4% argue that targeting the world’s most
mobile population is folly. However,
France 51,254 2.2% proponents point to the UN Convention
on International Tax Cooperation which,
Australia 42,789 1.8% despite the new US administration’s
views, could still have significant
Hong Kong SAR 42,715 1.8% ramifications for wealth taxation.

THE WEALTH REPORT AFFLUENCE 15

America first
more quickly than they otherwise would
have done,” Pomeroy explains.
“This has created a start-up culture
that’s been a big part of the growth story
in places like India and the Philippines,”
he adds. “These entrepreneurs can then
become super wealthy, so we’re seeing a
broadening out from that old Asia driven
by manufacturing into a new Asia with
a high-tech enterprise culture.” This
economic dynamism is vital for wealth
creation. Regional economies lacking
it tend to occupy lower positions in our
Wealth Sizing Model.
The population of individuals worth
Patrick Gower delves into our wealth sizing data and at least US$10 million in the Middle East
rose 2.7% last year, placing the region
finds that, despite the emergence of a new dynamic fifth. Almost 10% of its population of
breed of Asian entrepreneurs, the US still leads the HNWIs fall into our US$100 million-plus
category, a far larger proportion than
world in wealth creation any other region, which hints at the
scale of wealth generated by legacy
energy economies.
Many of the region’s largest
economies, most notably Saudi Arabia,
are seeking to diversify away from oil and
Investors entered 2024 knowing that boast a share of wealthy individuals larger gas by investing heavily in tourism and
rate cuts were coming, it was simply than 5%. hospitality, technology and innovation,
a question of when. It’s perhaps unsurprising, then, that biotechnology and renewable energy.
Consensus that central banks had the US led the world in wealth creation Whether they are successful will show
reached the end of their tightening during 2024, with a 5.2% expansion in up in our numbers in the years ahead.
campaigns fuelled big bets on risk assets its population of HNWIs. Asia was close
like equities and crypto. The US’s S&P 500 behind with growth of 5%, followed by DEMOGRAPHIC HEADWINDS
index rose more than 20% for the second Africa, which saw a 4.7% surge, albeit Europe occupies the final place in
consecutive year as investors clamoured from a much lower base. Australasia’s our rankings, with 1.4% growth,
for a piece of AI powerhouses like Nvidia. HNWI population rose 3.9%, helped by behind Latin America. A September
Bitcoin surged 120%, helped in the latter its access to both Asian and North report by Mario Draghi, Italy’s former
weeks of the year by the election of American markets. prime minister, said the EU lacked
Donald Trump, who pledged to loosen Appetite for risk assets like equities competitiveness with comparable
regulatory standards. has expanded rapidly in emerging economies, in part due to its complex and
That made it another good year for the markets like India, while European and bloated regulatory system. The bloc issued
wealthy. According to our Wealth Sizing Japanese attitudes to investing tend to approximately 13,000 new regulations in
Model (page 14), the global population of be more conservative, Pomeroy says. the five years to 2024, compared with just
HNWIs expanded by 4.4% to more than India now has 85,698 HNWIs, which 5,500 in the US, for example.
2.3 million people. The population of puts it fourth behind the US, China “Europe is overburdened with
individuals worth at least US$100 million and Japan. regulation,” says Kallum Pickering, Chief
climbed 4.2%, surpassing the 100,000 Economist at Peel Hunt. “Just compare it
mark for the first time. with places like Singapore, which are so
“Rates coming down has clearly “Economic dynamism is pro-business. Investors know where they
played a role in supporting risk asset
prices,” says James Pomeroy, a global
vital for wealth creation. are likely to get better returns.”
Demographic headwinds arguably
economist at HSBC. “You could also Regional economies pose even more complex challenges.
park capital in cash at the beginning of Unlike Asia, where many working age
last year and get 5% in most parts of the
lacking it occupy lower populations are growing at a rate well
world. That plays a huge role in keeping positions in our Wealth in excess of 3%, Europe’s working age
wealth growing for people who have been populations are generally declining, and
able to accumulate it historically.” Sizing Model” business sentiment remains weak.
“Anything growing at all in Europe
WEALTH HUBS is incredible when you consider the
America’s position as the world’s EMERGING ENTREPRENEURS demographics,” Pomeroy says. “You’re
primary hub for wealth creation remains But this is not just about the rich getting also looking at a market with relatively
unchallenged. Almost 40% of the richer. An explosion in smartphone subdued growth prospects, which takes
world’s HNWI population live in the US, access in emerging economies has created away a lot of that willingness to invest
compared with 20% for its nearest rival, “a very entrepreneurial population that is and take risks, certainly compared with
China. Japan is the only other nation to able to grow businesses internationally other, more dynamic economies.”

16 AFFLUENCE THE WEALTH REPORT

How to build a billionaire
What does it take to create serious wealth? In collaboration with
Forbes, The Wealth Report has conducted a detailed analysis of the
2,700-plus billionaires featured in Forbes’ annual wealth list. We
provide a snapshot of what it takes to surpass the nine-figure wealth
mark today – and what will be needed to join the billionaire club of
tomorrow – along with our graphical guide (overleaf)

The billionaire of today The billionaire of tomorrow

Finance and investment win trillion. Women account for New industries and regions LOCATION
the numbers race, but when just 13% of the list and hold are shaping the next Geopolitical shifts will
it comes to money, tech is US$1.78 trillion. The richest generation of billionaires always influence wealth
the big winner in today’s woman, L’Oréal heiress – and driving the future of creation. India, where the
billionaire landscape. Françoise Bettencourt global wealth. billionaire population grew
Meyers, is worth US$99.5 12% from 2023 to 2024, now
INDUSTRY billion (15th overall). The INDUSTRY hosts 191 billionaires, 26 of
Finance and investment lead, richest self-made woman, Perhaps surprisingly, them created within the
accounting for 427 of the Rafaela Aponte-Diamant, is manufacturing has produced past year – up from just
billionaires on Forbes’ list, 48th with US$33.1 billion. more new billionaires than seven in 2019. France, Brazil,
including Warren Buffett and → Key insight: Female tech over the past 10 years. and Russia are also seeing
Michael Bloomberg. But tech billionaires have grown Half are in China, reflecting significant increases.
dominates in terms of total from 10% to 13% over a the nation’s industrial → Key insight: The
wealth, with US$2.6 trillion decade, yet the gender strength. Despite recent billionaire landscape is
spread across 342 billionaires. wealth gap persists. challenges, China also now more global, with new
Nine tech billionaires surpass leads in the creation of new hubs emerging outside the
US$50 billion each – more LOCATION tech billionaires over the traditional powerhouses.
than any other industry. The US dominates, with same period.
Fashion and retail follow, 30% of billionaires and → Key insight: Manufacturing
CHECKLIST
with six billionaires in the 40% of total billionaire is outpacing tech in new
US$50 billion-plus range. wealth, a 10-year high. It wealth creation. — More likely to work
has extended its lead over in manufacturing

US$5.7trn
runner-up China, whose 406 AGE or fashion
billionaires have seen its The age gap between new — Increasingly likely to
share of billionaire wealth billionaires and the overall be female, especially
The amount of wealth held by
billionaires in the US fall below 10%. list has widened from two among younger
years in 2014 to six today, billionaires
peaking at nine years in — Getting younger,
CHECKLIST
AGE 2020 amid an IPO boom. as older generations
— Predominantly in Tomorrow’s billionaires
The average billionaire age in pass on wealth
tech or finance may skew younger.
2024 was 65.7, up from 63.3 — More global, reflecting
— Mostly male
in 2014 and higher than the a connected economy
10-year average of 64. Tech — Average age: mid-60s GENDER
billionaires, the youngest of — Primarily US-based In 2024, over 82% of new
the bunch, average 57.2 years. billionaires were male,
Only four industries have an down from 90% four years ago.
average age under 65. Of the billionaires under 30,

14
→ Key insight: Wealth nearly 47% were female last

26.6%
accumulation is a long-term year, potentially pointing the
pursuit, no matter the sector. way to a more balanced future.
Members of the US$100 billion → Key insight: The new The share of billionaire wealth held
club, who collectively hold generation of billionaires
GENDER by Gen X at its peak in 2021. Since
US$2 trillion — 14% of total
Men represent 87% of is more gender-balanced then, baby boomers have bounced
billionaire wealth, but just 0.5%
than before. back to take a dominant share
billionaires, holding US$12.4 of the billionaire population

THE WEALTH REPORT AFFLUENCE 17

Billionaires deconstructed
The Wealth Report and Forbes graphical guide

Forbes’ billionaires by industry (2024)

0
80
40

60

10

12
116
Automotive
Construction & engineering US$ bn
Diversified Mukesh Ambani

Energy
Fashion & retail
Finance & investments
Food & beverage
Gambling & casinos

67.8
Healthcare
Logistics US$ bn
Manufacturing David Thomson & family

Media & entertainment

Metals & mining
Real estate
Services
Sports
Technology
Telecoms
Billionaire wealth by market Chinese mainland India France Germany Russia
US$1.34trn US$0.95trn US$0.67trn US$0.64trn US$0.54trn

5.7trn
Hong Kong SAR Canada Italy Brazil UK
US$0.33trn US$0.3 trn US$0.30trn US$0.23trn US$0.23trn

US$
US$ 5.5trn
US Next 10 markets
by
by Billionaire
billionaire Wealth
wealth

18 AFFLUENCE THE WEALTH REPORT

 New billionaires
509
by industry since 2014 Manufacturing

443
Technology

0
0

0
0

20

22
14

18
16

195
353
Finance &
investments
277
US$ bn Elon Musk 318 Food & beverage

233
Fashion
& retail
Bernaud
Arnault 284
US$ bn & family Healthcare

206

133
Diversified
228
Warren Real estate
Buffett US$ bn
101 110
Automotive Media & entertainment

Generational billionaire shift

Share of Forbes’ list by generation
Gen Z
Millennials

177 194
Gen X

US$ bn US$ bn
Mark Zuckerberg Jeff Bezos

New billionaires by country

2014 2019 2024 Baby boomers

US Chinese mainland US

Chinese mainland US Chinese mainland

Brazil Brazil India

Germany Taiwan Russia

Sources: Knight Frank Research, Forbes

France Russia Brazil

Switzerland Hong Kong SAR France

UK Germany Switzerland
Greatest generation
Italy India Hong Kong SAR

Russia Philippines Germany Silent generation

Hong Kong SAR France Singapore

2001 2024
THE WEALTH REPORT AFFLUENCE 19
 Remote working Every day
Remote living <25km

A few times a week 25–50km

Top earners lead the daily work-from-home Location freedom increases with wealth
movement (% working at home, by income) About once a week (distance between home and office, by income) 50–75km

Less than once a week 75–100km

100–200km

200km+

60% 50%

50%
40%

40%
30%

30%

20%
20%

US$125,000 to US$150,000 to US$250,000 to US$500,000 to US$1m+ Less than US$500k US$500k–US$1m US$1m+
US$149,999 US$249,999 US$499,999 US$999,999

Source: Knight Frank Research Source: Knight Frank Research

Generation Wealth

81%
Knight Frank’s Next WORK
The lowest income respondents to
Generation Survey, a first-of- our survey – those with a household
its-kind global study of 1,788 income between US$125,000 and
US$150,000 – tend to live closer to their
wealthy 18- to 35-year-olds, offices, but the trend shifts dramatically
offers new insights into the as incomes rise.
of respondents say it’s feasible
priorities and preferences of Respondents in the second-highest
income bracket (US$500,000 to for them to work remotely
the new Generation Wealth US$1 million) typically live more than
75km from their workplace while more
than 15% of the highest earners – those
making over US$1 million – live at least
200km from the office.
These HNWIs aren’t daily jetsetters;
rather, they have mastered flexible
working. While remote work is possible
for over 80% of survey respondents, it’s
the highest income earners who most
frequently work remotely.
International work opportunities have
expanded their horizons, too. A large
portion of those earning more than
US$500,000 actively pursue cross-border
career opportunities.

20 AFFLUENCE THE WEALTH REPORT

All about the journey Health first
Travel tops Next Gen wish lists (% of survey respondents) ...but the highest earners prioritise health (% of US$1m+ survey respondents)

International travel Wellness/health

22% 24%

Wellness/health
20% International travel
19%

Education/skills
18% Education/skills
18%

Cultural events
13% Cultural events
13%

Family experiences
10% Fine dining
11%

Fine dining
9% Family experiences
8%
Sports/adventure
8% Sports/adventure
7%

Source: Knight Frank Research

LIFESTYLE
If our respondents were to receive a Top property
substantial windfall, almost half said they Real estate tops the luxury asset list for the Next Gen (% of respondents)
would spend the money on experiences
rather than material possessions. The
luxury industry has sought to adjust High-end real estate 29.8%
to these changing tastes by turning
the purchase of a Rolex watch or a
Lamborghini into a premium shopping Luxury car 27.8%
journey. Gucci has opened a string of
restaurants, Chanel now hosts “Art of Private jet 15.1%
Living” events, and Louis Vuitton’s parent
company has expanded into curated
travel experiences. Art collection 12.4%
Escaping the daily grind through
travel tops the experience wish list. Superyacht 8.9%
However, this shifts among the highest
earners, who increasingly focus
on longevity. Those earning over Wine collection 4.4%
US$1 million place the most value on
health and wellness experiences.
When pushed to confirm the luxury
Other 1.6%
asset they would most like to own, real
estate leads the pack. Source: Knight Frank Research

THE WEALTH REPORT AFFLUENCE 21

 HOUSING INVESTMENTS
For some, though, high-end real estate Taking ownership While cryptocurrencies, venture capital
remains an elusive goal. While 70% of More than seven in 10 Next Gen Survey or prized art pieces may generate
respondents currently own property, respondents own their own homes the headlines, the younger affluent
renting has gained appeal, particularly generation is still drawn to the classic
among the second-highest income Own trio of stocks, property and cash, which
bracket (US$500,000 to US$1 million). 71.3% remain the most popular investment
This cohort’s high likelihood of working avenues across income levels.
abroad makes them too mobile to Analysis by gender reveals nuanced
commit to property ownership, yet not investment preferences, with males
quite financially positioned to maintain gravitating towards stocks while females
multiple global properties. prefer property and cash investments.
Ever chasing the opportunity to
enter the US$1 million+ club, this group
is the most likely to move within the
next 12 months. Their professional and
geographical flexibility is epitomised
by the mobility that renting provides. Asset management
For those navigating the housing % of respondents choosing asset as
market, interest rates have become Rent their top investment priority (by gender)
a crucial factor. Many affluent young 16.1%
survey respondents have reacted to
the higher interest rate environment Live with parents OVERALL
by adjusting their property purchase 12.4%
1
budgets and timing.
22.3
1 Stocks

Ownership in focus Own

2 Property
%
Cash
% of Next Gen respondents who currently own,
Rent 20.2
rent or live with parents (by income)  Cryptocurrencies 2
& digital assets
Live with parents 19.5
Bonds

Other

MALE
US$125,000 to US$149,999
1
25.7
1 Stocks

2 Property
%
Cash
US$150,000 to US$249,999  Cryptocurrencies 18.4
& digital assets 2
17.2
Bonds

Other

US$250,000 to US$499,999 FEMALE

1

22
1 Property

2 Cash

Stocks
%
US$500,000 to US$999,999
21.9
 Cryptocurrencies 2
& digital assets
18.9
Art & collectibles

Other
Source: Knight Frank Research

US$1 million-plus

10% 20% 30% 40% 50% 60% 70% 80%

22 AFFLUENCE THE WEALTH REPORT

 DIGITAL FLUENCY
Spending habits Respondents indicated that personal
The price point at which Next Gen respondents prefer interaction becomes necessary for
to purchase in person than online (% of respondents) purchases between US$10,000 and
US$50,000. This means even high-value
items like a Rolex or Louis Vuitton
handbag are products consumers feel
comfortable purchasing online. As we
US$10k–US$50k examine the upper income brackets,

29.9%
“no limit” becomes increasingly common,
emerging as the third most frequent
response for the top income group.
At the opposite end of the spectrum,
females demonstrate the greatest
hesitancy towards online purchases of
substantial value. Of the 10% that selected
US$5k–US$10k the “under US$1,000” category, over 60%

21.0%
were female respondents.
US$1k–US$5k The primary motivations for seeking
19.2% personal assistance reveal nuanced
insights. For most, the “amount of money
Over US$50k involved” is the top reason to seek
15.9% personal interaction. However, for those
respondents in the highest income
bracket (US$1 million+), “complexity of
the product” emerges as the principal
Under US$1k driver, suggesting these UHNWIs are
10.4% more focused on tailored solutions and
personalised service.

No limit

3.6%

Spending in focus Male

The price point at which Next Gen respondents Female

prefer to purchase in person than online (by gender)

Under US$1k

38.7% 61.3%
US$1k–US$5k

50.9% 49.1%
US$5k–US$10k

55.1% 45.0%
US$10k–US$50k

47.8% 52.3% “Even high-value

Over US$50k items like a Rolex or
52.8% 47.2% Louis Vuitton handbag
No limit are products consumers
51.6% 48.4% feel comfortable
purchasing online”

THE WEALTH REPORT AFFLUENCE 23

Digital nomad detox
Administrations dished out incentives
from specialised visas to tax breaks.
However, the resulting runaway growth
in house prices and rents prompted soul
searching among officials as to the
benefits such new overseas residents
bring to cities, and whether these can
ever outweigh the negatives.
Rebelo is Portuguese, so he has skin
in the game. Alongside fellow academics
Joao Guerreiro, Pedro Teles and Miguel
Godinho de Matos, he set about charting
how foreign residents had transformed
Lisbon, and what policy responses might
alleviate the negative effects felt by locals.
The results were stark. The Lisbon
A new breed of laptop-wielding travellers is transforming the municipality attracted more than 20,000
world’s most beautiful cities. The impact on locals is stark, new foreign residents between 2011 and
2022. During the same period, the number
say campaigners, prompting calls for greater regulation and of family homes in the city centre
a reassessment of global mobility. Patrick Gower explores declined by 3,000 units.
The mismatch between supply and
demand drove rents up by more than
40%. House prices climbed 25%.
Complaints were made that local
residents were displaced: about 27,500
city centre residents moved to peripheral
areas during the same decade. A quarter
of a million workers now spend an
average 81 minutes commuting during
rush hour each day.
“People commute a lot now, which
wastes time and effort,” Rebelo notes.
“In the long run, the ideal solution is for
people to live and work in the same place.”

OFFSET THE HARMS

Governments have tried various ways to
offset the negative aspects of inflows of
foreign residents. Most efforts to increase
housing supply have been unsuccessful
– developers are entangled in red tape
and, more recently, hesitant to commit to
new projects due to elevated interest rates.
Portugal, Spain and Thailand have all
tightened policies for digital nomads, and
Hot spot An influx of foreign residents drove Lisbon’s population up more than 8% in a decade
many more, including Canada, Australia,
New Zealand, Switzerland and Denmark,
Residents of the coastal cities of Barcelona, “People in Lisbon often lament have implemented regulations that limit
Venice and Lisbon have watched visitors how much the city has changed,” says foreign property ownership. Others have
come and go for millennia. But one Sergio Rebelo, Professor of International sought to introduce fees to regulate the
modern band of travellers is proving Finance at the Kellogg School of flow of tourists generally, including arrival
increasingly difficult to cope with. Management, Northwestern University. and departure taxes, daily levies and
Laptop-wielding digital nomads “They recall a time when downtown was charges per night for accommodation.
– globally mobile remote workers – have filled with charming local restaurants. These methods are inefficient, says
compounded the already thorny problem Now it’s dominated by cheap pizzerias and Rebelo. Instead, the researchers
of rampant tourism in the world’s most food options lacking local character. The recommend taxing capital gains on
desirable cities. The influx of new real challenge for cities as attractive as property sales for everybody and using
residents has driven up house prices Lisbon is figuring out how to welcome the revenue to offset any harms. The tax,
and eroded local character, campaign a growing influx of potential residents which Rebelo refers to as the “foreign
groups say. Supporters argue that the while preserving the city’s character and resident surplus”, can be set at a level that
newcomers bring much-needed economic ensuring it remains liveable for locals.” raises enough to outweigh the costs borne
activity, especially those entrepreneurial Governments stepped up competition by the locals. The money raised could be
nomads who start businesses and bring for digital nomads during the pandemic- spent on subsidising rents in areas of high
fresh ideas. induced boom in remote working. demand, he suggests.

24 AFFLUENCE THE WEALTH REPORT

The solution hints at an uncomfortable
truth in an era defined by the global Still want to join the ranks of digital nomads?
mobility of workers: that digital nomads
bring gains in property values and little
As our round-up of global schemes and
else. “We believe that’s largely the case,” incentives shows, you’re spoiled for choice...
Rebelo says. “Tourism creates jobs in
restaurants and hotels, and foreign
residents can generate some economic
activity – perhaps by improving product
marketing or leveraging knowledge of
distribution across different regions.
Some of that is happening. However, for
the most part, foreign residents bring
EUROPE ASIA-PACIFIC
capital gains to local real estate owners.”
Portugal Bali, Indonesia
A PLANNING OVERHAUL
Provides a Digital Nomad Visa for stays Plans to introduce a Second Home
Still, governments are unlikely to ever
up to one year, with a minimum income Visa for remote workers, allowing stays
tighten digital nomad policies or taxes
requirement of €3,040 per month. of up to five years, with proof of funds
to a degree that meaningfully curtails
amounting to IDR 2 billion.
the travel of remote workers to beautiful
Croatia
cities. Even if ministers were to tax
Introduced a Digital Nomad Residence Thailand
capital gains on a large scale to subsidise
Permit for stays up to a year, targeting Offers a Long-Term Resident Visa for
housing, the migration of local people to
non-EU citizens. remote workers, valid for up to 10 years,
suburbs would continue to some degree.
with a minimum annual income
The long-term solution, then, is to
Spain requirement of US$80,000.
rethink how cities are designed so places
Launched a Digital Nomad Visa
of work are positioned closer to where
under the Start-up Law, allowing stays Malaysia
workers live, say Rebelo and his peers.
up to five years with tax benefits. Introduced the DE Rantau Nomad Pass,
They hold up Paris as a model: in the
allowing stays up to 12 months,
19th century, Napoleon III gave Baron
Greece renewable, with a minimum monthly
Haussmann carte blanche powers to
Provides a Digital Nomad Visa for income requirement of US$2,000.
reshape Paris. The overhaul resulted in
up to 12 months, extendable, with a
the famous wide boulevards with their
minimum income requirement of South Korea
uninterrupted views of the Eiffel Tower,
€3,500 per month. Announced plans for a Workation
but perhaps most importantly, over time
Visa (F-1-D) to facilitate remote work.
office buildings, production facilities and
Details pending.
residential complexes were moved to
AMERICAS
La Défense and other peripheral areas.
“In Paris, the city centre has evolved
Barbados AFRICA AND THE MIDDLE EAST
into a leisure space, beautifully curated
Introduced the Welcome Stamp Visa,
with strict zoning rules. For example,
allowing remote workers to stay for Dubai, United Arab Emirates
there are no skyscrapers blocking views of
12 months, renewable, with a minimum Offers a Virtual Working Program
the Eiffel Tower,” Rebelo explains. “At the
annual income of US$50,000. for one year, renewable, with a
same time, significant investments were
minimum monthly income requirement
made to develop suburbs where people
Costa Rica of US$5,000.
can live and work comfortably.”
Offers the Rentista Visa for remote
In the absence of sweeping powers
workers, valid for up to two years, Mauritius
granted by a Napoleonic dictatorship,
with a minimum monthly income Provides a Premium Visa for remote
European governments can introduce
requirement of US$2,500. workers, allowing stays up to one
policies to repurpose office buildings
year, renewable, with proof of
into homes and encourage companies
Mexico sufficient income.
to move offices nearer to where workers
Provides a Temporary Resident Visa
live. Taxing capital gains in the near term
for remote workers, valid for one year, Namibia
offers shorter-term relief, without being
extendable, with proof of sufficient Introduced a Digital Nomad Visa for
so heavy-handed as to lose the gains
income or savings. six months, with a minimum monthly
that remote workers bring. So, is the
income requirement of US$2,000.
Portuguese government listening?
Brazil
“We did get some interest from public
Introduced a Digital Nomad Visa Cape Verde
officials, but I wouldn’t say we had much
valid for one year, renewable, with a Offers a Remote Working Program
real influence,” Rebelo admits. “There’s
minimum monthly income requirement for six months, extendable, with proof
a tendency to focus on taxing foreign
of US$1,500. of income and health insurance.
home buyers as a solution, but this
approach overlooks the large capital
gains missed in the process. I think that’s
the key point people are missing.”

THE WEALTH REPORT AFFLUENCE 25

Investment
The drivers and trends steering 28 THE KNIGHT FRANK 150
Results and insights from our survey
global investment and commercial of family offices

markets now, and in the future 32 ONE LAST ROAR

How generational shifts are driving
family office investment strategies

34 COMMERCIAL AWARENESS
The sectors – and investors – driving
commercial real estate markets

36 SECTORS TO WATCH
Five key opportunities for those
investing in commercial property

38 KEEPING IT REAL
Our mythbuster separates commercial
property fact from fiction

40 MESSAGE IN A BOTTLE
Our global round-up of vineyard values

44 THE EVOLUTION OF ESG

How the changing sustainability
landscape is shaping investor priorities

48 MAGNETISING AFFLUENCE
Creating real estate propositions
that resonate
 The Knight Frank 150
Allocations to real estate rose over
the past 18 months, with 28% of FOs
increasing their allocation, compared
with 17% reducing their exposure.
Global family office investment strategies. Defined. The top real estate sectors for current
allocations are led by offices (20%), luxury
residential (17%), industrial (14%) and
hotels (12%).
Some 70% of real estate investment
is domestic, with the most domestically
minded FOs based in New Zealand (93%),
Australia (90%) and the US (86%). The
most geographically diverse portfolios are
those of FOs based in Switzerland (31%
domestically invested), Hong Kong SAR
(33%) and Singapore (41%).
Our survey of 150 family offices finds investors keen

70%
to broaden their exposure to real estate, a sector they
view as offering both growth potential and wealth
preservation. Welcome to the inaugural edition of
the Knight Frank 150

Share of real estate portfolio

invested domestically
THE FAMILY OFFICE Assets under management (AUM)
Through November and December 2024, averaged US$560 million, totalling
INVESTMENT STRATEGIES
we interviewed 150 single and multi- more than US$84 billion across the 150
Most respondents view real estate as one
family offices across the globe. Our family FOs. Around 40% of FOs surveyed had
component within a broader investment
office (FO) panel covered 121 single-family operating businesses with a focus on real
strategy, balancing it alongside listed
and 18 multi-family offices as well as 11 estate within their portfolios.
equities, venture capital or other private
heads of more diverse structures. The
investments. Some continue to hold real
FOs were headquartered in 29 cities
across Asia, Europe, the Middle East and
Family offices by assets estate for core commercial operations and
under management see it as a strategic asset that underpins
the Americas, with strong representation
FO activities. For others, real estate is
from FOs based in London, Singapore, Almost a third of our panel controls AUM
exceeding US$1 billion, while another third treated as a fixed income proxy, held long
New York, Geneva, Sydney and Hong
manages between US$250 million and term to protect purchasing power and
Kong SAR.
US$1 billion provide stable returns.

Family offices by region Preferred real estate

Under US$50m

US$50m–US$100m

US$100m–US$250m

US$250m–$500m

US$500m–US$1bn

Over US$1bn

Our family office panel, with representation

from single- and multi-family offices in 29
investment strategies
world cities, provides a global perspective While opportunistic strategies lead, family
on this critical investor group offices are employing a range of risk
approaches in their real estate portfolios
6.2%

32.3%
19.2%
11.5%

13.1%
17.7%
Source: Knight Frank Research

THE PORTFOLIO
Real estate features strongly in the
portfolios of the FOs surveyed: direct
APAC 51% Latin America 4% Opportunistic 31.9% Core plus 13.1%
real estate was the third most common
Europe 33% Middle East 1% allocation, behind equities and cash, Value add 30.3% Fixed income
alternative 8.8%
North America 11%
with indirect real estate investment Core 15.9%
coming in seventh place.

28 INVESTMENT THE WEALTH REPORT

 Real estate strategies are led by Across the different metrics employed, PRIVATE RESIDENTIAL PROPERTY
Opportunistic (32% of respondents), FOs on average target an unleveraged Nearly two-thirds of FOs manage private
Value add (30%) and Core (16%) 13.8% return. family residential properties. The main
investment approaches. In terms of the objectives that real objectives for this management are
For most FOs real estate investment estate fulfils in the wider investment Family use and legacy (44%), Capital
is viewed as a medium- to long-term portfolio Growth and capital appreciation preservation (29%) and Diversification
strategy, with few investments made (42%) dominates, with Wealth (20%), with Potential rental income
with a sub three-year time horizon (3%). preservation (23%) and Income generation coming in last at 7%.
The proportions are similar for three to (19%) in second and third places.
six year (32%) and six to nine year (28%)
horizons, although the largest share of Drivers for maintaining a
investments is made with an outlook of Preferred real estate private residential portfolio
nine years or more (37%). investment objectives There are four key drivers behind
Capital growth, wealth preservation, the management of private family
and income generation dominate real estate residential properties, with family use and
Preferred duration for legacy being the main considerations
investment objectives
real estate investments
The time horizon for real estate
Growth and capital appreciation Family use and legacy
investments by family offices is dominated
44.4%
by medium- to long-term holdings Wealth preservation

Income generation
2.7%
0–3 years
Geographic or sector diversification

31.8%
3–6 years
Inflation hedge

28.2%
6–9 years
Tax efficiency and estate planning

37.3%
9 years +

The most popular investment route

was “Solo” direct investment (34%),
Capital preservation
followed by Fund (19%) and Joint venture

42.1%
29%
(13%) routes.

Preferred routes for real

estate investments
Preferred investment routes are dominated
by direct investments, fund structures
and joint ventures
Diversification
19.5%
“Solo” direct investment US
34.4%

Fund “Solo” direct investment US

18.6% 34.4%

Joint venture
12.6%
22.5% Potential rental income
7.1%

Debt
8.5%
On average, those FOs managing
Private markets
7.7% private family residential properties are
responsible for 4.7 properties, ranging

18.5%
Mezzanine from five in Latin America to 4.2 in
6.5%
North America.

4.7
Public markets
6.1%

Preferred equity
5.7% 7.2%

In terms of measuring real estate 7.0%

investment returns, the majority of
FOs consider either Total return (31%) Average number of homes in the private
or Internal rate of return (31%) metrics. 2.7% family residential portfolio

THE WEALTH REPORT INVESTMENT 29

 Of those with an active family residential In terms of sectors in demand, the top in meeting these investment objectives.
portfolio, 25% are considering the three targets across our panel of FOs are The biggest barrier to increased real
acquisition of property over the next Living sectors (14%), Industrial/logistics estate activity was defined as a difficulty
18 months, and 20% are considering a (13%) and Luxury residential (12%). in identifying reliable partners or
disposal of homes. operators (23%), followed by challenging
tax regimes (20%), high competition for
FUTURE PLANS assets and the need for speed to access
Real estate sectors in demand
While our respondents see opportunity opportunities (19%). Regulatory and
Family offices are interested in additional real
in real estate, and on balance want compliance barriers (17%) were also noted
estate investment opportunities, with living
to increase exposure, there is a note sectors, logistics, luxury residential and hotels as major concerns.
of caution in the responses received. leading the pack
There is a desire from some to exit
Living sectors
specific deals, where problematic loans
14.3%
Barriers to further real
or projects that no longer align with estate investment
broader strategy need to be managed. Industrial/logistics
13.2% Appetite for additional real estate investment
While most respondents see opportunity is sometimes held back by barriers to entry,
in a medium-term upturn in the real Luxury residential/branded residences ranging from a lack of partners to taxation,
estate cycle, they remain cautious 12.1% regulation and more
about the speed of interest rate cuts Hotels
and high building costs. Identifying reliable partners
11.6% 23% or operators
Despite concerns over the macro
Healthcare
environment, 44% of respondents 11.0%
expect to increase their exposure to
Data centres
real estate over the next 18 months, 11.0%
compared with only 10% looking to 20% Tax regimes

reduce their investments. Infrastructure

10.3%

44%
Offices
10.1% 19% High competition for assets

Retail
5.4%

Life sciences 17% Regulatory

and compliance barriers
1.1%

Limited expertise
8%
Share of family offices looking While the general tenor is for more rather
to increase investment in direct real than less exposure to real estate, there 7% Lack of market transparency
estate over the next 18 months are a number of challenges that FOs face
7% Access to capital or finance

Generations in control Primary

Primary decision-making is dominated by Secondary
baby boomers, but Gen X and millennials NEXT GENERATION LEADERS
are becoming increasingly important Third Baby boomers (60 to 78 years) lead in
terms of primary decision-making across
our panel, heading up 50% of the FOs
surveyed. Gen X (44 to 59 years) is the
next largest cohort, with 36% holding
60%

primary decision-making control.

The baton is slowly being passed to
millennials (28 to 43 years), who make
50%

up the remaining leaders.

While primary decision-making
40%

responsibility appears to be tightly held

by older age groups, 58% of FOs are
30%

actively involving the next generation.

While 35% of those who have involved
Source: Knight Frank Research

20%

the next generation have seen no shift

in strategy, 47% have seen “some”
shift and 18% have been rewarded
10%

by a “significant” shift.
Silent generation: Baby boomers: Gen X: Millennials: Gen Z:
79+ years 60 to 78 years 44 to 59 years 28 to 43 years up to 27 years

30 INVESTMENT THE WEALTH REPORT

 Decision-makers of the future
We asked: Is the next generation involved in your
family office decision-making process, and, if so, has
this impacted on your investment strategy?

No, the next

generation is not Yes, they are involved,
currently involved in with some shift in
decision-making investment strategy

27% 27%
Yes, they are involved,
but there has been no
discernible change in
investment strategy

20%
No, they are not
involved, but we plan
to incorporate their
input in the future

15%

Note: Summary survey results from The Knight Frank 150 are provided in Databank on page 80
Yes, they are involved,
and the investment
strategy has shifted
significantly

11%

THE WEALTH REPORT INVESTMENT 31

32 INVESTMENT THE WEALTH REPORT
“The dinosaur is having offices designate roles to investment
professionals. Some of the larger family
access to trading apps like Robinhood,
experts say.
one last roar at the offices in Europe or the US, for example, “In Asia, that generational shift is
are virtually indistinguishable from not just about who takes control of the
meteor before it institutional investors. business that creates the wealth, but
wipes him out” Beginning this process can be difficult what do you do with the cash that’s being
for the original generators of wealth, thrown off by that business,” adds Kleiner,
Kendall Roy, Succession who may eye financial institutions who recently travelled to the region to
Season 1, Episode 4 with distrust, or view their children as meet wealthy families. “We sat opposite
inexperienced. “These first-generation 30- or 35-year-olds who were running
HBO’s Succession racked up 81 awards types have been successful because hundreds of millions of dollars
over the duration of its run, a rate of they’ve made strong and successful in investible assets.”
more than two per episode. What did decisions themselves,” says Marcus Yorke-
audiences find so compelling about a new Long, Head of Private Office at Charles STEPPING UP
generation clamouring for control of the Russell Speechlys. “It takes quite a long Our survey confirms that millennials and
family billions? time to generate that willingness to award Gen Z are being prepared for primary
Maybe it was the sharp dialogue, or mandates to third parties.” decision-making positions. Almost one
the “stealth wealth” fashion sported by Still, a handover is under way. Of the in ten respondents said millennials are
the characters – or perhaps it was because 150 family offices surveyed by Knight already the primary decision-makers,
viewers knew they were getting a realistic Frank, 58% said that the next generation and 44% said millennials hold secondary
glimpse of a world previously shrouded is already involved in investment powers. A fifth of respondents said
in mystery. decision-making. Almost 40% said there members of Gen Z hold secondary powers.
Because whether it’s confusion over had subsequently been a change in the Moral and cultural differences
a principal’s post-death wishes or the investing strategy. Some 11% said the between generations does influence
division of wealth after divorce, many strategy had “shifted significantly”. investing strategies, our experts say.
of the issues explored in the show crop Some 63% of our millennial respondents
up in real life, legal experts say. How GENERATIONAL SHIFTS said they had already put money into
they are resolved will have a big influence Questions as to how succession will be sustainable investments, compared with
as to how trillions of dollars are spent. managed tend to be more pressing in just 35% of baby boomers, for example.
Some US$18 trillion in assets will be Asia, where much of the wealth being For wealthy individuals seeking some
handed down globally in the next five passed down is to the second or third control over how their capital is used or
years, according to Vanguard – the largest generations. Private capital in the Asia- protected by future generations, instilling
intergenerational transfer of assets Pacific region expanded at an annual some sense of values or purpose at the
in history. rate of 13% during the decade to 2023, outset is vital, says Clare Anderson,
“Obviously Succession was according to EY. That’s driven rapid Global Head of Schroder’s Family Office
dramatised, but a lot of these issues come growth in the family office industry: Service at Cazenove Capital. “If those
up when individuals are vying for control approximately 80% of the region’s aren’t in place already, by the time you
of the empire,” says Graeme Kleiner, family offices were founded after 2000, start handing wealth on to the next
Partner, Private Wealth Disputes at law according to a 2022 report by Campden generation, you’ve started to lose control.”
firm Charles Russell Speechlys. “Part of Wealth. Two-thirds of those were founded Family offices have many methods to
the magic is building a coalition of the after 2010. install guardrails, whether for investment
willing, so finding roles within the family Many of the newly minted families professionals or future generations.
– and potentially the family office – send the next generation to top That might include putting funds
within which individual family members universities in the US or UK. Those into a series of trusts or foundations
feel fulfilled. Otherwise, you end up with returning are often faced with the choice: that come with protections. Trustees
these tensions, and the structure starts to run the family business or the family are bound to act in the interest of
get stressed.” office. And while the Roy children in beneficiaries, for example. Family offices
Succession were unified in their desire might also set up committees of family
FAMILY FORTUNES to take the helm of Waystar Royco, the members with special powers, including
The maturity of the family fortune global media conglomerate founded by abilities to change trustees or to make
influences the degree to which new their father, millennials and Gen Z show recommendations to professional
generations hold sway over investing increasing interest in investing roles, investment managers.
strategies. Guardrails emerge as wealth says Emily Petersen, a sustainability and “Large families might have a
passes through generations, whether impact portfolio director at Cazenove constitution or a similar document which
through structures like trusts or as family Capital. That has risen in tandem with sets out agreed principles for how the
family will regulate itself and who gets
a seat at the table,” says Piers Master, a
Patrick Gower takes a deep dive into the results of our partner at Charles Russell Speechlys. “It’s
Knight Frank 150 survey of family offices – and finds that the very hard for any successful entrepreneur,
in my experience, to be willing to give up
old guard is not quite ready to hand over the reins control of their money to a trustee or to a
family office. It’s not in their DNA to do

One last roar

that.” Just like Succession’s Logan Roy, it
seems the older generation is not about
to relinquish control easily.

THE WEALTH REPORT INVESTMENT 33

Commercial
22% in 2024. While investor confidence
remains resilient, institutional investors
have adopted a more cautious approach,

awareness
with their share of total investment
standing below their long-term average
of 40%. Meanwhile, private capital
continues to be a key driver of the

Investment by buyer
Private investors were the dominant buyer
group for the fourth consecutive year

Against a backdrop of improving economics,

evolving geopolitics, and the slow shift to lower
interest rates, the outlook for commercial real estate
is cautiously optimistic, says Will Matthews

Total global commercial real estate from 48% in 2023. Institutional buyers
(CRE) investment rose to US$806 billion were the second most active group,
in 2024, marking a +8% year on year deploying US$268 billion, some 33% of
increase, a significant rebound on the the total. Private, Institutional and Public
sharp 43% contraction recorded in 2023. buyers all recorded a rise in investment
Private investors dominated for the compared with 2023, with the exception
fourth consecutive year, contributing of the User/other group, which fell 6%.

US$359.6bn
Institutional
US$102.3bn
User/other

US$268bn
US$360 billion or 45% of total global Buyers in public markets saw the largest

US$61bn

Private
Public
investment volume, down slightly rise, posting a year on year increase of

Investment by sector recovery, able to access a broad range

Total global commercial real estate investment in 2024 was of funding, allowing these buyers to act
8% up on 2023, with industrial the most invested sector more opportunistically in the market.

SECTORS IN DEMAND
Just as in 2023, Industrial was the most
invested CRE sector, accounting for just
US$2trn over a quarter of all global investment at
US$216 billion. Living was close behind at
US$1.8trn
US$205 billion, while Office investment
US$1.6trn
reached US$173 billion. Although the
Industrial, Office, Hotel and Living
US$1.4trn sectors all increased their share of total
investment in 2024, Retail investment
US$1.2trn
declined, its global share falling from 18%
US$1.0trn in 2023 to 16%. Similarly, Seniors housing
& care shrank from 3% to 2%.
US$0.8trn

US$0.6trn
WHO’S BUYING?
Investors from the US, Canada and the UK
US$0.4trn were the most active sources of cross-
border capital in 2024. Among the top 10
US$0.2trn
global cross-border capital sources, the
only investors to increase investment in
2024 were from Sweden (+128%), Canada
% CHANGE VS 2023 (+73%), the UK (+70%), the US (+61%) and
Industrial Living Office Retail Hotel Seniors housing & care the Chinese mainland (+41%).
↑ +12% ↑ +17% ↑ +6% ↓ -5% ↑ +10% ↓ -10% The UK was the largest source of
private cross-border capital in 2024,

34 INVESTMENT THE WEALTH REPORT

 Top investment sources Big deals
Five of the top 10 grew in 2024: Sweden, Canada, the UK, the US and the Chinese mainland 2024’s biggest private capital commercial
property transactions

US$560m
Address 980 Madison Avenue, New York
Buyer Michael R Bloomberg

US$520m
Address 21 Collyer Quay, Singapore

Hong Kong SAR

Buyer Sunrise Capital Management
US$29.0bn
US$61.9bn

US$11.4bn

Singapore

US$4.5bn
US$5.4bn
US$9.5bn

US$5.8bn
US$7.5bn

US$4.1bn
mainland
Germany
US$7.1bn
US$362m

Chinese
Sweden
Canada

France

Japan
UK
US

Address ITA Logistics, Italy

with investment increasing 224% year WHAT WILL INVESTORS BE TARGETING?
Buyer Pontegadea
on year to US$3.3 billion – their first time Growth opportunities are emerging

US$302m
topping the rankings since 2008. Private in select sectors. According to our
UK capital primarily targeted assets in Capital Gravity Model, from our Active
Europe (France, Spain and Germany) Capital report, the logistics and living
and the US. By contrast, while private sectors are expected to attract the most
Address Amazon Distribution Centre,
US capital grew modestly by +2% year significant investment, driven by long- Burnaby, British Columbia
on year to US$1.6 billion in 2024, the term solid structural tailwinds. More Buyer Pontegadea
US slipped to fifth place in the top 10. specialist sectors such as healthcare

US$227m
London was the top metro destination and student housing are often high on
for cross-border investment in 2024, investors’ wish lists due to their strong
attracting a total of US$9.6 billion. rental growth prospects and counter-
Notably, the UK capital also reclaimed cyclical nature. However, the operational Address Grand Opera, Paris
the top spot for overseas private capital, complexities, compliance challenges Buyer Pontegadea
overtaking New York, which topped the and liquidity constraints associated with
rankings last year. these assets may create hesitation among
investors. Consequently, investors may
THE OUTLOOK FOR 2025 be more inclined to transact within the Top investment destinations
The overall picture in 2024 was more conventional CRE sectors. The UK tops the list of destinations for
one of economic resilience. The global cross-border CRE investment (US$bn)
battle against inflation had largely
been won, interest rates were drifting Cities in demand UK
US$26.2bn
downwards and many economies were London was the top metro destination
navigating a soft landing. However, for total cross-border investment in
US
2024, also reclaiming the top spot for
considerable downside risks remain, US$24.5bn
overseas private capital from New York
including geopolitical uncertainties
Japan
and uneven regional recoveries. US$15.4bn
Despite these challenges, a significant London US$9.6bn
pool of capital remains ready for Australia
Sydney US$8.6bn US$12.8bn
deployment. Anticipated interest rate
cuts in the first half of 2025, combined Tokyo US$5.6bn Germany
with the continued decline in swap rates, US$10.9bn
are expected to create a more favourable Singapore US$5bn
investment environment. This should France
US$8.6bn
bolster investor confidence, improve Chiba US$4.2bn
Sources: RCA, Knight Frank Research

market sentiment and helping unlock Italy

New York US$4.2bn
greater transaction volumes. US$6.3bn

Borrowing against property is already Paris US$3.9bn Spain

showing an upward trend, reflecting US$5.7bn
growing investor appetite, while global San Francisco US$2.9bn
CRE pricing is beginning to stabilise. All Chinese mainland
Melbourne US$2.6bn US$5.7bn
this suggests that 2025 could usher in a
stronger phase of recovery, with increased Berlin US$2.4bn The Netherlands
capital flows and renewed momentum US$5.5bn
in the CRE sector.

THE WEALTH REPORT INVESTMENT 35

Sectors
to watch 2
European retail
Economic prospects remain mixed
but will not eclipse the attractions of
European markets. Interest rates, already
lower than most developed markets, are
set to fall further, and this will be boosted
by the relative liquidity of commercial
property markets in Germany, France,

1
Spain, Italy and the Netherlands. We
anticipate many investors will remain
focused on sectors with structural
From retail to tailwinds, such as logistics and living
(senior housing, student accommodation
operational real estate, and build-to-rent), where it is easy
we highlight some to articulate the case for long-term
investment. One sector to note is retail,
of the most exciting especially in developed markets. Pricing
has come under downward pressure in
opportunities for recent years, thanks to concerns – real or
those investing in Safe havens imagined – over the rise of e-commerce,
the Covid-19 pandemic and the pace of
commercial property Geopolitical risk will remain heightened wider economic growth. Current pricing
in 2025, in particular across Europe, could represent an attractive entry point
Asia and the Middle East. Investors will for well-chosen retail assets.
again take a positive view of commercial
property in safe-haven locations. Offices
in gateway cities remain one of the HOW MUCH?
archetypal volatility hedges. Although Prices for retail assets can start as
there may be few outright bargains, the low as US$3 million but, as always, quality
asset class is liquid, well-understood and is key.
accurately priced. For example, despite
a somewhat subdued market over the WHO’S BUYING?
past year, London was one of the largest Some larger investors have started
recipients of cross-border real estate to test the waters, but for now smaller
investment, demonstrating the ongoing private players still dominate.
appeal of its commercial property sector.
HOW LIQUID IS THE MARKET?
Despite strong competition, retail
HOW MUCH? property can be relatively easy to
Budget for an entry price of acquire – the key is to have a clear plan
between US$20 million and US$30 million. for holding, managing and exiting.

WHO’S BUYING?
Private buyers have been active
recently, but demand is broadening to
a range of global investor types.

HOW LIQUID IS THE MARKET?

This is one of the commercial
property sector’s most liquid markets.

36 INVESTMENT THE WEALTH REPORT

 5
3 4
ESG assets
Surveys carried out for The Wealth Report
show a longstanding desire among
respondents to engage in philanthropy
and/or to make investment decisions
based on more than hard financial
considerations. In recent years, this has
Logistics Operational real estate led to a big shift among private investors
towards acquiring assets that support
The logistics sector has been The rise of operational real estate – in ESG strategies (for example through
revolutionised over the past decade, with which the asset is intrinsically linked to retrofitting or refurbishing, see page 47).
record investment volumes targeting the relevant business model – is one of the So far, much of the focus has been on
available assets. As pricing has risen big growth stories in commercial property the “E” (environmental) part, perhaps
sharply, the question for investors is in recent years. From student housing to unsurprising given our own research
how many opportunities remain. In our hotels, healthcare to data centres, such shows a clear link between assets that
view, the outlook is positive. Geopolitical investments typically require buyers to meet modern sustainability standards
uncertainty is driving a reassessment run the assets as a business, or at least and investment performance. The “S”
of optimal supply chains and, at the put in place a team to do so. In their (social) aspect is harder to measure and
margins, an increase in demand for infancy, operational markets can seem attracts less attention, but is arguably no
space. More generally, supply chains are opaque compared to more established less important. In fact, when we surveyed
subject to continuous refinement, leading alternatives. Inevitably, there is less data institutional investors in commercial
to a steady flow of new leasing demand. to draw on, and less history to study. property, nine in 10 had social targets. So,
Unlike some other commercial property However, as they mature, the picture can what does this mean in practice? At one
types, lot sizes can be helpfully modest flip, with these assets generating very end of the spectrum, 73% were targeting
for those testing the waters. But what detailed information about performance workplace wellbeing. More ambitious
makes the sector particularly compelling precisely because they are so intertwined were the 56% seeking improvements in
for those with a longer-term horizon is the with the underlying business. the public realm, and the 35% looking to
potential for redevelopment. Although support local communities. Measuring
far from a guaranteed possibility for the efficacy of such investment goals can
every site, as cities grow and demand for HOW MUCH? involve more than just straightforward
infrastructure proliferates, the ability to A wide range of property types financial metrics with investors relying
reimagine well-located logistics assets for mean that there is almost no lower limit on an alphabet soup of frameworks,
other uses will become an increasingly for acquiring operational real estate. benchmarks and tools – GRESB, SDGs,
valuable option. However, economies of scale mean it RESVI, ESRS, CSRD and SROI, to name
may be prudent to purchase in lot sizes just a few – to help quantify and report
of US$5 million and above. social impact.
HOW MUCH?
The price of entry for large-scale WHO’S BUYING?
logistics facilities is typically between A mix of private equity, HOW MUCH?
US$10 million and US$20 million, but institutions, private property companies It’s less about the amount, and
smaller assets start at a much lower and individuals. more about how capital is deployed in
price point. pursuit of social goals.
HOW LIQUID IS THE MARKET?
WHO’S BUYING? Liquidity depends on maturity, WHO’S BUYING?
A competitive market, with but for sectors with five to 10 years of Institutional investors have led
purchasers coming from a variety history, transaction volumes can rival the charge – but others are now following
of backgrounds. their more established counterparts. what is recognised as a sound future-
proofing strategy.
HOW LIQUID IS THE MARKET?
Typically, a very liquid market, HOW LIQUID IS THE MARKET?
but with a strong story supporting growth Assets able to demonstrate a
in the sector, potential vendors need measure of social value will have a
an incentive to sell. broader appeal and be more readily
transacted than those that cannot.

THE WEALTH REPORT INVESTMENT 37

Keeping it real ESG is no longer relevant
Governments around the world are
placing less emphasis on ESG, and
investors should do the same
This argument is flawed for several
reasons. COP29 brought a renewed
focus on climate action, making it
risky to downplay ESG concerns.
Institutional investors, key drivers of
green building progress, are unlikely to
abandon sustainability for short-term
political shifts. Additionally, legislation
From the rise of online shopping to the post-pandemic and public demand for sustainable
investments can quickly rebound, leaving
work-from-home trend, shifts in real estate those acquiring non-compliant buildings
markets are fuelling assumptions that could lead with no clear mitigation strategy and
vulnerable to illiquidity.
to missed opportunities for investors. We separate

200
the myths from the reality

The office is dead Number of governments tightening

their climate action plans following
Post-pandemic, more people are working COP29
from home and office occupancy is falling
Far from being obsolete, the office
is evolving to meet the demands of
modern work and shifting employee
expectations. Hybrid working is driving
companies to rethink office spaces,
emphasising flexibility and purpose.
As businesses adapt, the office will
transform into a dynamic hub for
meaningful workplace experiences
and a strong organisational culture.

Top shops Retail outperformed in 2024

20%
Proportion of retail sales accounted
for by e-commerce
Smart future Data centres are going green(er)

Retail is history There’s no place for data

The rise of online has made retail real centres in a sustainable
estate uninvestable
investment strategy
Retail remains a key driver of global
High energy use conflicts
Future work Rethinking the office economic growth, fuelled by population
with environmental goals

86%
increases and rising per capita spending.
Online sales still represent a small share While they remain major consumers
of global retail, and multi-channel models of energy and water, data centres are
are outpacing online-only, with store- transitioning towards renewable energy
based ecosystems outperforming. After sources with many also adopting more
Share of global occupiers anticipating past corrections, retail has reclaimed sustainable practices such as using
their future workstyles to be office- top asset-class status in some markets recycled water for cooling and selecting
only, office-centric or hybrid by 2026* including the UK, delivering total returns sites to minimise ecological disruption.
in 2024 of 8.2% vs 5.1% for all property. Data centres also enable environmental

38 INVESTMENT THE WEALTH REPORT

 Repurposing is
the answer for every
challenged asset
Changing use is an easy way to
enhance value
Building obsolescence comes in many
flavours: regulatory, functional, physical
and financial. When these limits are
reached, the call to “repurpose” grows
louder. But one size does not fit all. We
identify five types of renovation: from
light-touch retrofitting, all the way to
full-scale redevelopment. The key to
identifying the appropriate action is
viability. Simply put, an approach that
is financially viable in one location may
not stack up in another.

70%
Machine age AI is driving innovation across sectors

efficiencies by deploying technologies

such as AI and big data analytics,
AI is stealing our jobs
which enhance energy and resource Demand for office space will plummet
management. Cloud computing as a result of technological advances Share of commercial floorspace
infrastructures reduce the need for in the UK at risk of environmental
Fears that AI will eliminate jobs (regulatory) obsolescence
physical hardware, cutting waste and
oversimplify its impact. AI is reshaping
supporting virtual services that lower
work by augmenting roles, not erasing
carbon footprints.
them, and could solve the productivity
It’s all about the

20%
puzzle. Rather than reducing the
workforce, AI drives innovation and
creates dynamic career opportunities
Next Big Thing

*Source: Knight Frank (Y)OURSPACE. **Source: World Economic Forum. Office image: Courtesy of Ministry of Design Pte Ltd
in a changing economy. The key to success in real estate investing

97m
is to be at the forefront of the latest trends
Data centres have a key role to play
in driving down global CO2 emissions For a class of assets with a potentially
by one-fifth by 2030 indefinite lifespan, the world of
commercial real estate can seem oddly
fixated on the new. Riding these waves
Number of new roles created by AI can be one way to generate attractive
Geopolitical tensions between 2020 and 2025** returns. But an almost universal truth
are bad for supply chains in commercial real estate is that income
trumps capital growth over the longer
Demand for logistics real estate will suffer term. That means some of the most
as a consequence of instability attractive performance might, in fact,
come from resolutely unexciting real
Geopolitical upheaval can disrupt trade
estate sectors.
routes and sourcing strategies, affecting

2/3
warehousing needs. However, it also
creates opportunities. Companies may
shift production closer to consumers,
shortening supply chains, or hold more
stock to safeguard against disruptions.
Both strategies boost demand for local Share of commercial real estate
industrial and logistics facilities. return typically driven by income

6%
Estimated increase in logistics
floorspace needed to support longer
FIND OUT MORE
For more insight
on the future of the
workplace head to
(Y)OURSPACE
lead times
Solid bet Traditional sectors still deliver

THE WEALTH REPORT INVESTMENT 39

Message in a bottle
vineyards and larger brands seem to be
weathering the storm better than medium-
sized businesses that can’t rely on scale
or provenance.
The North Fork area of Long Island,
New York, is an example of a smaller
wine-producing area with a good story
to tell that has proved resilient in the face
of global pressures. “We’re in the
backyard of Manhattan and there is huge
demand for local food and drink,” says
Melissa Principi, a broker for Douglas
Elliman, Knight Frank’s residential
partner in the US. “North Fork has
Against a backdrop of wilting wine consumption and become a real destination.”
geopolitical tensions, rural commentator Andrew Shirley Many of the people buying vineyards
are successful financiers looking for a
takes a global vineyard tour to assess how markets are faring lifestyle investment who have added
stylish tasting rooms and restaurants to
their purchases, adds Principi.
“Fifteen years ago, the wine here
wasn’t great, and there wasn’t much to do
Global wine consumption is down 12% TARIFFS MATTER for tourists, especially outside of summer,”
from its 2007 peak, and even though Winemakers in the US’s biggest grape- says Kristy Naddell, another Elliman
production has also fallen by 20% over growing regions are also on tenterhooks broker from the area. “But over the past
the past 20 years, few of the world’s key to see what impact President Donald five to seven years, a lot of wineries have
vineyard regions remain unscathed. Trump’s second term might have on a changed hands and are now offering much
Areas with vineyards supplying market that is already feeling the pressure higher-end experiences.”
grapes in bulk to large-scale winemakers from the drop in consumption.
are most exposed. New Zealand’s Deporting immigrants who do a CHAMPAGNE SUPERNOVA
Marlborough region, for example, lot of the work on vineyards would Vineyard values have always varied hugely
saw vineyard values correct by as push up production costs, while the in France, with vines in appellation
much as 33% in 2024 after hitting a peak implementation of tariffs would hit d’origine contrôlée (AOC)-designated
in 2023, says Kurt Lindsay of Bayleys, exports, points out David Ashcraft of areas and those, such as Provence, that are
Knight Frank’s local partner. “A lot of Vintroux Real Estate, which specialises popular with second-home and lifestyle
firms were still sitting on 2023 stock, in the Napa and Sonoma Valley markets. buyers worth far more. However, the gap
and bulk wine prices fell from NZ$7 to Values for premier Napa vineyards seems to be widening.
NZ$3/litre.” remain stable, but prices in less exalted According to data from French land
Lindsay isn’t too pessimistic, though. areas could have fallen by 10% to 30% registry authority SAFER, the average
“The Marlborough Sauvignon brand is during 2024, reckons Ashcraft. price for AOC vineyards is currently
very strong and I think we are close to Australia’s wine market is one that around €150,000/ha, but this slides to just
the bottom of the trough. Now is a good knows only too well the damage that trade €15,000/ha for non-AOC areas.
opportunity to buy vineyards at 2019 prices.” tariffs can cause. Wine exports to China In Bordeaux, home to the bulk of
Producers in Chile’s Colchagua totalled A$1.4 billion in 2019, but the the world’s investment-grade wines,
Valley have also been hit hard. “Over the imposition of punitive import tariffs prices also vary widely. However, only
past few years, grape prices have been by the Chinese government as part of a the most prestigious vineyards, which
horrific,” says Matt Ridgway of Chile trade dispute saw sales crash to virtually can sell for well over €1 million/ha and
Investments. However, the availability zero in 2023. rarely come to the market anyway, would
of alternative options, such as planting The tariffs were lifted in April 2024, find buyers at the moment, points out
cherry trees, means land values haven’t but vineyard prices in South Australia’s Nicolas Parmentier, Head of Vineyard
fallen. “People won’t sell for a loss,” notes Riverland region are still likely to have Transactions at Janssens Knight Frank.
Ridgway. “There are still no bargains.” fallen by as much as 50% last year, says This lack of market evidence means
Elsewhere in Latin America, a Jason Oster, an agribusiness specialist the official SAFER figures, which show
similar trend is being seen in Argentina’s and valuer at Knight Frank Australia. an average sales price for AOC vineyards
Mendoza region, says Patrick Kinnersly of Prices in the Barossa Valley, which of €109,000/ha and an annual drop
real estate agent Contacto Propiedades. produces higher-value wines, have seen in values of just 4%, don’t accurately
“A lot of vines have been replaced by smaller declines, he adds. “Buyers, reflect the challenges facing the region.
vegetables. Garlic is now one of our ironically including Chinese HNW “Only about 5% of vineyards are doing
biggest exports.” investors, are coming back to the market.” okay. Thousands of hectares are being
Despite this, vineyard prices have uprooted,” explains Parmentier.
remained firm during 2024. “We are STORYTELLING Elsewhere, prices for the most iconic
seeing more foreign investment since A recurring theme around the world is Burgundy vineyards can still exceed
President Javier Milei’s economic the wide variation in vineyard values €1 million/ha with no weakening of values.
reforms, and businesses are more and performance, even within relatively The Champagne region, despite pumping
optimistic,” explains Kinnersly. small regions. Small boutique or lifestyle out huge volumes of the fizzy stuff each

40 INVESTMENT THE WEALTH REPORT

year, also seems immune to the global
downturn, with vineyard values nudging up. For those looking to invest in a vineyard, The Wealth Report
has curated a global selection to suit buyers with a wide
EMOTIONAL ASSET range of budgets
Like Bordeaux, Spain’s main red wine-
producing areas such as La Rioja are
suffering from overproduction, but
there is a clear distinction between
the market for wineries and the vines
themselves, says Puri Mancebo of
specialist agency Rimontgó.
“There are a lot of wineries for sale
with the prices open for negotiation,
but selling a vineyard is much more
emotional. They have often been in
the hands of the same families for
generations and so far we haven’t seen
enough forced sales to bring values
down. But that could change.”
Demand for wineries in areas
ELEPHANT HILL, HAWKE’S BAY, POGGIO LA NOCE, TUSCANY, ITALY
specialising in white wine, like Galicia,
NEW ZEALAND Just 30 minutes from the centre of
is buoyant, notes Mancebo. “There is
This innovative winery occupies Florence, this 18-hectare organic wine
local and international interest, including
52 hectares in the east of the North and olive oil estate comprises two
from Latin Americans.”
Island, one of the warmest regions in farmhouses, a cantina and four hectares
New Zealand. Award-winning wines – of vines, with a fifth to be added this
CLIMATE CHANGE
including “icons” Airavata Syrah and year. The flagship Gigiò wine is a
Shifting weather patterns are starting to
Cabernet/Merlot blend Hieronymus – complex blend of mostly Sangiovese
influence the global vineyard market,
benefit from the unique terroirs of three with a touch of Colorino, an intense
with some regions set to benefit. “The
vineyards, located in the region’s finest black-red grape synonymous with
Loire, south Burgundy and Beaujolais,
viticultural areas: Te Awanga, Gimblett Tuscany. The estate is priced at
where the climate is becoming more
Gravels and Bridge Pa. The guide price US$14 million.
conducive to winemaking, are the future
is in the region of US$12 million.
of wine in France,” says Parmentier.
With average temperatures rising, the
area of vines in the UK, not to mention
the quality of the wine produced, is
growing significantly, reports Will Banham
of Knight Frank’s Viticulture team.
“Counties such as Kent in the south-
east of England producing predominantly
sparkling wine have traditionally been
the heartland of the industry,” says Will.
“But now we are seeing vineyard values
rising more rapidly in other counties
such as Essex in the east where growers
are experimenting with different grape
varieties to create still rosé and red wines.”
Climate change mitigation is also
influencing land use in the traditional
wine-growing areas of Portugal, says João OSPREY’S DOMINION GRAMBOIS, VAUCLUSE, FRANCE
Pinto Marques of the Private Consulting NORTH FORK, US This 62-hectare estate includes 16
team at Quintela Penalva Knight Frank. This winery and vineyard in Long hectares of vineyards, 2.5 hectares of
“People are looking for land for carbon Island’s up-and-coming North Fork olive trees and 36.5 hectares of woods
sequestration projects in tandem with area includes 14 hectares of Carménère, and forests. There is an extensive
vines. There have been some big deals.” Pinot Gris and Sauvignon Blanc grapes range of outbuildings and agricultural
With Gen Z reportedly set to be as well as a 5,000 sq ft tasting room, buildings as well as a spacious main
the most alcohol-shy generation ever, ideal for events or hosting intimate house. The estate is for sale at US$3.4
global weather conditions becoming wine experiences. The 21-hectare million through Knight Frank SNC.
increasingly erratic, and a tariff property is for sale at US$6.9 million via
enthusiast in residence at the White Kristy Naddell of Douglas Elliman. For more information please contact:
House for the next four years, interesting [email protected]
times lie ahead for winemakers and For information on Grambois, contact:
vineyards around the world. [email protected]
See overleaf for our graphical
overview of global vineyard trends.

THE WEALTH REPORT INVESTMENT 41

A world of wine
Main wine style Status

Red White Rose Embryonic Emerging Consolidating Mature

Taking in some of the world’s most iconic
significant wine-producing areas, our viticultural
map reveals what types of wine are being
produced where and in what volumes. It also
highlights the huge disparity in the price being
paid for vineyards across the world, as well as
revealing which areas are at the peak of their
powers and which are emerging hotspots

3 Spain
16 Rioja 0%

US$80,000/ha
US 63,500 hectares
3 Napa Valley: 0% 350 million bottles
Rutherford
8 9
US$1,200,000/ha
2,690 hectares
13 million bottles
8 Napa Valley:
Los Carneros
-15%
Argentina
Mendoza
US$290,000/ha 20 0%

4,140 hectares
US$40,000/ha
29 million bottles Chile 146,000 hectares
9 Long Island: 0% 18 Colchagua
North Fork Valley
0%
820 million bottles

US$250,000/ha US$70,000/ha
1,215 hectares 33,000 hectares 20

6 million bottles 300 million bottles

18
South
Africa
x 17 Stellenbosch +3%

Ranking by US$/ha
US$80,000/ha
X%
16,800 hectares
12-month % change
in vineyard values 170 million bottles

Sources: Knight Frank, Bayleys, Chile Investments, Contacto Propiedades, Douglas Elliman, Janssens Knight Frank, Rimontgó, Vintroux Real Estate
Note: The price per ha of vines is indicative only and could vary widely between vineyards within the same area or region

42 INVESTMENT THE WEALTH REPORT

UK 2
1
Italy
11 Essex +20% 1 Barolo +5% 6 Brunello +5%
4 5 di Montalcino
12
US$120,000/ha 11
US$2,080,000/ha US$910,000/ha
400 hectares 1,254 hectares 1,200 hectares
2 million bottles 6 14 million bottles 7 million bottles
12 Kent & 0% 7 Bolgheri +3% 10 Chianti +3%
Sussex Classico

US$110,000/ha US$810,000/ha US$180,000/ha

14
2,600 hectares 15 21 1,100 hectares 9,800 hectares
13 million bottles 7
6 million bottles 35 million bottles
10
16

France
2 Bordeaux: -4% 4 Burgundy: 0% 5 Champagne +2%
Margaux Côte de Nuits

US$1,250,000/ha US$1,090,000/ha US$1,040,000/ha

1,530 hectares 660 hectares 34,200 hectares
9 million bottles 4 million bottles 300 million bottles
14 Côtes de 0% 15 Loire +5% 21 Côtes du -10%
Provence Rhône

US$100,000/ha US$90,000/ha US$30,000/ha

17 20,000 hectares 57,000 hectares 32,000 hectares
19
123 million bottles 400 million bottles 400 million bottles
13

New
Australia Zealand
19 Barossa -10% 13 Marlborough -33%
Valley

US$60,000/ha US$110,000/ha
11,600 hectares 23,000 hectares
150 million bottles 350 million bottles

THE WEALTH REPORT INVESTMENT 43

The evolution
of ESG

In the 18 years since The Wealth Report was first

published, sustainability has become a cornerstone
of wealth management and investment strategies.
Flora Harley sets the changing priorities of UHNWIs
against a shifting global investment landscape

Back to nature The 3,600-acre Far Ralia estate in Scotland, for sale through Knight Frank, offers one
of the UK’s largest quantified carbon sequestration opportunities

44 INVESTMENT THE WEALTH REPORT

 in battery storage systems could be due
to potential for leasing to operators at
higher rental values and with lower
land area requirements.

TALENT RETENTION
Driven by the pandemic-fuelled “flight
to quality”, amenities supporting staff
wellbeing and sustainable buildings
became essential in attracting and
retaining talent. In 2020, Lee Elliott,
Knight Frank’s Global Head of Occupier
Research, noted the strategic role of real
estate in workplace design. While this
trend has continued, he now questions
whether we’ve reached “peak amenity”,
with the focus shifting to sustainable,
purpose-driven spaces, as explored in the
research series Meeting the Commercial
Retrofit Challenge and UK Cities DNA.
Power play Battery storage is in demand
METRICS THAT MATTER
FROM PHILANTHROPY TO IMPACT In the 2024 edition of The Wealth Report,
In 2013, The Wealth Report noted Action on sustainability we started to uncover how UHNWIs
the rise of hands-on philanthropy, view ESG in real estate acquisitions,
% of respondents to the Knight Frank 150
including impact investing and family office survey who have invested or are with 61% looking for energy efficiency
venture philanthropy. Over the past looking to invest in ESG-related sectors ratings and 48% for on-site renewable
five years, this trend has accelerated power (both up on previous years).
dramatically, particularly among Have invested   Looking to invest Investors more broadly are looking
younger investors. More than a quarter beyond green certifications (cited by
Solar power generation 53% of respondents to our 2025 ESG
of the family offices responding to our
28% Property Investor Survey) to the capital
Knight Frank 150 survey (page 28) have
22% expenditure required to meet future
invested in climate and environment
sustainability, with 42% looking to Improving the ESG performance of commercial property
sustainability related regulation (75%)
do so. In our Next Generation Survey 24%
and the actual energy data (47%) required
(page 20), the figures are 55% and 45% 16%
to understand building performance.
respectively, while three-quarters of
respondents said they would choose a Renewable energy battery storage NATURE AS AN INVESTMENT
more environmentally friendly product 20% Interest is growing in nature-based
even if it cost 20% more. 29% solutions, with rewilding getting its first
If these figures focus mainly on the mention in 2019, followed by carbon
Wind power generation
“E” part of ESG, the “S” – or social – farming in 2021. According to this year’s
11%
aspect has also gained momentum. More survey of family offices, 27% are looking
14%
than a fifth (22%) of our family office to invest in environmental credits, with
survey respondents have supported the Environmental credits, such as carbon credits 10% already having done so, up from
arts, culture and heritage preservation, 10% 21% looking to invest in nature-based
while healthcare and medical research 27% solutions and 19% in carbon sequestration
is the second most popular category for last year. The evolution continues, with
Nature restoration (rewilding or nature conservation)
future investment (behind climate and the next frontier focusing on “vintage
7% carbon” and its valuation (see next page),
environmental sustainability). A fifth
16% adding depth to the growing intersection
(21%) say they plan to focus on the arts.
of wealth, sustainability and nature.
Source: Knight Frank Research
APPETITE FOR PROPERTY
The integration of ESG into property

75%
investment has evolved significantly. Our survey of family offices also
In 2020, 73% of respondents to our highlights the rise in ESG-related
Attitudes Survey noted growing property investments. Some 28% have
awareness among UHNWIs about invested in solar power generation and
climate change, with 45% concerned 24% in improving the ESG performance
with the environmental impact of their of commercial property. Going forward,
real estate investments. By 2023, 76% were the most in-demand category is
reporting environmental considerations renewable energy provision, with 29%
as a key factor in investment decisions. looking for opportunities in battery Proportion of Next Gen Survey
In 2024, two-thirds were actively working storage investment and 22% in solar respondents who would pay more for an
to cut emissions. power generation. The greater interest environmentally friendly product

THE WEALTH REPORT INVESTMENT 45

Vintage carbon
own Stockdale-Winter Curve projects
UK carbon credit prices to rise from
£50 per tonne in 2024 to £150 by 2030,
potentially exceeding £500 by 2050. With
Nattergal achieving £84 per tonne last
year, Stockdale notes “a robust upward
trend, driven by tightening targets and
escalating demand for verified high-
integrity credits”. The Curve is currently
being revised to reflect this.
This variability in pricing creates
opportunities: producers can lock in
future prices to support investment in
As the race to meet net zero goals gathers pace, projects like nature-based solutions and
could vintage carbon offer a useful way of bridging carbon sequestration, while buyers can
the gap? Flora Harley explores an evolving market hedge against rising costs and insure
against future volatility.

BALANCING ACT
For businesses and investors, the forward
price of carbon credits could justify
abatement measures today, or indeed
investing in freehold land with carbon
credit potential as a hedge. If the cost
will be higher in 2030 or 2050, there’s a
compelling argument for taking action
now or locking in future prices. However,
this raises a question: does buying credits
today indicate confidence that net zero
goals will be met, or suggest they are
unlikely to be achieved without offsets?
The carbon market’s reputation as
a “wild west” is starting to shift. COP29
saw the adoption of a new framework for
standardised global carbon markets which
should bolster trust and transparency,
making vintage carbon an even more
attractive proposition. But being able to
see it and touch it, as Stockdale notes,
can provide even greater comfort.
Green land Investing in vintage carbon supports nature-based solutions For forward-looking investors and
businesses, vintage carbon offers a way to
In the pursuit of net zero targets, the “store carbon, provide space for nature, manage long-term costs, invest in high-
“gold standard” approach – such as the and deliver positive environmental and quality offsets, and support nature-based
Science Based Targets initiative (SBTi) – social impacts”, talks of “partnerships and technological solutions to climate
allows for 5–10% of emissions to be offset rather than transactions” and likens challenges. With the race to net zero
after all reasonable reduction efforts. quality carbon vintages to luxury goods intensifying, vintage carbon could be a
With nearly 4,000 companies committed such as watches. game-changer – both for those producing
to net zero through SBTi alone, demand “They take years to produce, but credits and those investing in them.
for offsets is set to grow, particularly for the result is high-quality, limited edition
hard-to-abate emissions. pieces that command a premium – and The “vintage” of a carbon credit refers
may have a waiting list,” he says. He to the year it was or will be generated:
THE OPPORTUNITY describes Oxygen’s 2024 credits as “the that is, the year in which the carbon
For those entering the vintage carbon result of meticulously crafted ecological emissions in question were or will be
market, several opportunities are restoration projects, maturing in some of avoided, reduced or sequestered, and
emerging, chief among them the ability the UK’s most cherished landscapes. This the credit verified and issued. By itself,
to produce carbon credits. Verified, high- vintage is our ‘prestige reserve’.” vintage is not an indication of quality.
quality credits – such as those covered As discussed on page 28, appetite Nor is it the case that older credits are
by the UK’s Woodland Carbon Code and from wealthy individuals continues worth less because they were issued
Verra’s Verified Carbon Standard – are to grow. Understanding the value of a at a time when market regulation was
essential to market integrity. carbon credit is key for producers and possibly less stringent. As with any
As the market matures, the ability buyers alike. BloombergNEF estimates purchase, due diligence is key. What
to connect credits with buyers becomes the voluntary carbon market could matters is the quality and rigour of the
critical. Rich Stockdale, founder of grow from US$2 billion today to US$34 project, not the date on the label.
Oxygen Conservation, which aims to billion annually by 2050. Oxygen’s

46 INVESTMENT THE WEALTH REPORT

Where should sustainability-minded investors
be focusing their attention in 2025? Our experts
offer their insights into broader market trends

ESG top picks

Retrofitting and Green-certified Renewables, Sustainable homes,

refurbishing logistics, Malaysia Australia and UK New Zealand
offices in London – Amy Wong David Goatman and Barbados
and beyond Executive Director, Research Global Head of Energy &
Andrew Blandford-Newson
& Consultancy Malaysia Sustainability Services
Associate, International
Nick Braybrook
In Malaysia, the green Last year’s edition of The Residential
Head of London Capital Markets
logistics sector has been Wealth Report confirmed
With two-thirds of UHNWIs
Some £2.8 billion was invested expanding rapidly. Asset that 27% of UHNWIs were
aiming to cut their personal
in value-add assets in London Enhancement Initiatives, interested in investing in
carbon emissions according
in 2024, almost 30% of it by which typically encompass renewable energy projects.
to last year’s edition of The
private investors. Investing substantial upgrades aimed at According to this year’s
Wealth Report, developers
in assets with lower ESG improving energy efficiency, Family Office Survey, 28%
are looking to capitalise on
credentials and upgrading sustainability and asset have already invested in solar
the trend. Several exemplar
them offers both financial quality, have been on the and 11% in wind, with 22%
developments have come
and environmental rewards. rise and are likely to grow and 14% respectively looking
forward in the past 12 months,
Currently, 75% of office further with the new Energy to do so. Markets as different
including Five Mile Villas in
floor space across England Efficiency and Conservation as Australia (sunny) and the
Frankton, New Zealand, with
and Wales is rated EPC C or Act from January 2025. UK (windy) are showing how
226 new homes incorporating
below, making it vulnerable However, a notable supply– investors can access these
significant sustainability
to regulatory obsolescence demand imbalance persists, projects. Australia’s trajectory
features, and Brighton Beach,
by 2030. In London, take-up creating a lucrative window is set, with more than a third
St Michael in Barbados where
for new and/or refurbished of opportunity for investors. of electricity generation
properties feature specialty-
space accounted for around As the market stabilises already coming from
coated Solar E glass to
two-thirds of the market in and yields normalise, green renewables and a target to
minimise heat and glare.
2024. Retrofitting to higher logistics investments stand reach 82% by 2030. In the UK,
The attention to detail extends
levels of sustainability ensures to offer both financial and the new government’s plan
to coastal landscaping, with
compliance and can unlock environmental returns, to decarbonise the electricity
turtle-friendly lighting to
value, aided by strong demand making them an attractive grid by 2030 provides a basis
protect the endangered
for best-in-class offices and proposition for forward- for wide-ranging growth. The
hawksbill turtles that nest
the dwindling supply of new thinking investors. investment required to meet
on the beach.
space. With the global march these targets opens up huge
towards decarbonisation INVESTMENT AMOUNT opportunities for investors.
INVESTMENT AMOUNT
of buildings already well US$10–US$100 million
From NZ$884,000
under way, this is a trend that INVESTMENT AMOUNT*
transcends borders. HOLD PERIOD £500,000–£20 million HOLD PERIOD
3+ years
Minimum 12 months
HOLD PERIOD
INVESTMENT AMOUNT TARGET RETURN 25–40 years TARGET RETURN
US$20–US$25 million 4.1% net yield on green-
0% if rented out short term
certified properties TARGET RETURN
HOLD PERIOD or 4.3% for long term (NZ)
5 years 5%–7% freehold

TARGET RETURN
10%–15 %

* Figures relate to freehold investments only and are based on typical/average investment ranges and indications of past performance

THE WEALTH REPORT INVESTMENT 47

Magnetising How to achieve maximum occupancy,
improving returns and capital growth?
If the Holy Grail of real estate is out

affluence
there, it will very likely need to include
magnetising the modern affluent: a
group of increasingly influential, globally
mobile individuals with disposable
incomes and an appetite to live life in a
truly modern context. So how to create,
develop and nurture propositions that
will attract and retain these individuals?

THINKING GENERATIONALLY
Before we get lost in a swamp of
stereotypes and unhelpful references,
let’s acknowledge one simple truth. Yes,
Gen Z will become the wealthiest and
most influential generation ever seen,
but the boomers, Gen Xers and
millennials will continue to be the
dominant economic force for the next
20 years (see chart top right).
Ben Whattam, co-founder of the Modern Affluence Summit
and Venture Partner at independent consultancy Zag, on FUTURE WEALTH
Strategies that focus on Gen Z alone are
creating real estate propositions that exert a magnetic therefore unlikely to manifest in the short-
pull on the world’s most valuable audiences or mid-term performance demanded by

Community spirit Koichi Takada’s Upper House in Brisbane, Australia

48 INVESTMENT THE WEALTH REPORT

shareholders. Instead, a psychographic
approach allows us to look at the shared Future wealth
values and attitudes that bind groups Generational spending power by age
together across generational boundaries
Past Future

Per capita spending (US$2017 PPP)

and define what we mean by a modern US$30K
Gen Z
affluent outlook. Millennials
Gen X
In the course of the search for that Baby boomers
Holy Grail, we spoke to a cross-section of Silent generation

global experts. Active and influential in US$20K

the world of real estate, they also excel

in branding, culture and community
knowledge, seeking to better understand
the opportunities a growing pool of US$10K
private capital and affluent consumers
can offer to investors, developers
and operators.
Combining their insights with our Age 25 50 75 100
own, derived from five years spent Source: World Data Lab, Consumer Outlook 2025
studying this group, we can identify four
shared values that underpin the leading
modern affluent real estate propositions, 2. RESILIENCE design, addressing environmental
capitalising and leveraging cross- The emergence of more collective challenges while honouring Australia’s
generational wealth. decision-making within families around cultural history.
long-term investment points to our Thoughtful consideration was also
1. NON-CONFORMITY next value, resilience, and the idea of given to the future-proofing of apartment
Entrepreneurialism has defined the an enduring legacy. While wealth may layouts, enabling flexibility and adaptation
past half century of wealth creation, not be being transferred literally, it is to meet changing needs. “Upper House is a
and this spirit, energy and mindset nevertheless moving away from being space that engages and connects, allowing
is an underlying attitude seen across “owned” by the patriarch to being more it to stay relevant for years to come [and]
generational wealth today. Non- widely shared. “It’s now more of a family proactively preparing for renewal is the
conformists challenge the status quo, discussion and a shared interest than new challenge,” says Takada. In doing so,
pride themselves on thinking differently simply a principal’s perspective and he creates resilience, both commercially
and actively drive change, believing decision,” agrees Ho-Pin Tung from Knight and culturally.
that this is the key to unlocking Frank’s Private Office in Hong Kong.
disproportionate returns. Take the concept a step further and we 3. FRIENDSHIP
For an example of non-conformity in see the build-to-rent trend supercharging In a period of civilisation when the human
action – and what it can deliver – look to this need for resilience as developers attention span has reduced to a mere
Tokyo where Mori Building Co, which led become operators for the long term. 8.5 seconds and more than 5 billion people
the development of the Roppongi Hills Yasmin Jones-Henry, Financial Times are accessing social media platforms
mega-complex in 2003, recently launched contributing writer and curator of The Lab each day, it’s reassuring to learn that
another innovative mixed use inner-city E20, a partnership between Get Living and friendship and connection are emerging
redevelopment at Azabudai Hills. “The RÆBURN located in the Olympic Park in as a driving value of modern affluence.
ethos is one of a vertical city, working Stratford, east London, comments: “It’s Sam Blenkinsopp of travel platform
in collaboration with local residents to about prioritising developing a culture Trippin puts it succinctly: “Now when
create transformative space for nature, and cultivating community. Property people are looking for accommodation, a
community and culture,” says Andreas has no real value without people desiring workplace or a hospitality destination they
Seidler, Senior Director at consultancy to work or live in it. Engineering social are looking for something more than the
Anchorstar. The reward? The highest rents value is a long-term commitment.” physical, they’re looking for a sense
per sq ft in Tokyo. Introducing social use cases and creating of belonging.”
Elsewhere, Hugh Dixon of Knight cultural lighthouses that resonate with the The magnetising effect of niche
Frank’s Private Office points to the lifestyle aspirations of residents and the communities, bound by a shared interest
transformation of 22 Vanderbilt in commercial ambitions of landlords can or motivation, is increasingly delivering
Midtown Manhattan, highlighting not transform urban areas, driving rental yields
only the originality of its design and vision and boosting underlying asset values.
for the physical space, but the opportunity On a smaller scale, award-winning
for start-ups locating there to benefit architect Koichi Takada’s Upper House “Property has no real
from a truly innovative space-for-equity
offer, combined with world-class wellness
in Brisbane, Australia, takes the principles
of re-use and resilience to new practical
value without people
facilities, hospitality and community in and emotional levels. By putting desiring to work or
one membership. “Elevating amenities community space at the rooftop, where
has been a long-term trend,” he says, the most expensive square footage has live in it. Engineering
“but we’re seeing the very concept of traditionally been, it fosters strong social social value is a long
integrated amenities being challenged in bonds in a resort-style living context.
exciting ways, and rewarded with rental The design integrates natural materials, term commitment”
values and occupancy.” biodiverse landscaping and sustainable ­— Yasmin Jones-Henry

THE WEALTH REPORT INVESTMENT 49

shareholder value across fashion, informality and an approachable menu,
technology and most recently sport. In and the highest standards”.
the property sector, one of the pioneers Soho House has been under increased
is Orascom Development which, since scrutiny since its IPO, but given the extent
its inception in 1989, has planned and to which its values align with those of
developed with the objective of “building the modern affluent audience, and its
communities”. Based on a recent survey commitment to staying relevant, the group
of more than 3,600 people across Europe, remains a global leader and is still one to
the Middle East and North America, watch. At the same time, though, a host of
Erica Pettit, Group Head of Corporate other private members’ clubs are vying to
Communications & ESG at the business, make themselves the destination of choice
points to insights that cement this for this coveted community. See The Ned’s
strategy, with “70% of respondents stating expansion to Doha, New York and (in the
they would like to have more community near future) Washington DC, the Arts
groups where they can regularly meet and Club’s new home in Dubai and The Twenty
socialise with other residents”. Two’s second home in New York.
180 The Strand, a development
from The Vinyl Factory, may not
be a residential development but it
demonstrates a similar philosophy.
“Everyone wants to be
Servicing a tribe of creatives from across in the right place at the
London – including Soho House, TikTok,
Founders Forum and Dazed – the mixed right time. Our job is to
use space includes work areas, hospitality, create the right place
retail, wellness and most recently
accommodation. What stands out here and the right time,
is the scale and the attention focused
on programming a space that brings the
even on a wet Monday Five developments shaping
the future of real estate
community together and allows new evening in January”
connections to thrive. 1
­— ­Richie Notar
The Lab E20, London
4. RELEVANCE
Get Living/ RÆBURN
If there’s one word that sums up the
growing importance of cultural capital 5. BRAVE LEADERSHIP 2
to modern affluent consumers, it’s In an industry dominated by habitual
Azabudai Hills, Tokyo
relevance. But writing it is easier than behaviours and de-risking strategies,
Mori Building Company
achieving it. Money does not translate to the overriding takeout is the need to
taste, and the ability to create relevance be bold. Brave leadership – along with
does not correlate with the investment private capital – is the key to creating
Upper House, Brisbane
per square foot. “Everyone wants to be compelling real estate propositions that
Koichi Takada Architects
in the right place at the right time. Our attract the world’s affluent. Maybe, as
job is to create the right place and the diversified balance sheets and increased
right time, even on a wet Monday evening returns over the long term emerge, these
180 The Strand, London
in January,” comments Richie Notar, vanguard strategies will be adopted into
The Vinyl Factory
consultant and former Managing the mainstream. As Yasmin Jones-Henry
Partner at hospitality group Nobu. comments: “A few mavericks are flipping
Relevance is in many ways the the table, but we need more.”
by-product of non-conformity, resilience The values of modern affluence 127 Mount Street, London
and friendship. As one industry leader are rapidly evolving, transcending the One Luxury Group
and investor commented, “It’s the secret traditional. Freed from convention,
sauce that has made us successful.” The these consumers seek experiences
result of deep cultural understanding, and investments that align with their
relevance also demands a genuine contemporary worldview. Propositions For more insights into why private
passion to create the unique: it’s hard that are non-conformist, resilient and members’ clubs are one of the fastest
work to break away from the playbook. foster genuine human connections growing subsectors in real estate,
Look to London’s Mayfair, where will increasingly attract and retain download Knight Frank’s A Guide to
luxury leather goods brand Tanner affluent individuals and their capital. Private Members’ Clubs
Krolle is leading the development of a We are confident that this trend will only
new retail and hospitality concept at intensify, shaping the future of real estate
127 Mount Street. Damian Mould of One across the globe.
Luxury Group, the driving force behind
the development, which will feature the
return of the much missed “posh diner”
Automat, describes it as “a destination
people want to socialise in, with

50 INVESTMENT THE WEALTH REPORT

 1 2

THE WEALTH REPORT INVESTMENT 51

Luxury
The assets and collectibles 54 PIRI 100
The global and regional highs and lows
capturing the hearts as well as from our Prime Residential Index

the heads of wealthy investors 62 HOTTEST HOUSING MARKETS

Our round-up of the locations to watch
in 2025

66 THROUGH A GLASS, SPARKLY

What a wine list reveals about luxury
spending trends

68 YACHT SPOTS
A wave of alternative destinations
is redrawing the yachting map

70 THE GREAT LUXURY CORRECTION

The results of this year’s Knight Frank
Luxury Investment Index

72 STANDOUT SALES
The stellar lots grabbing the headlines
at last year’s auction sales

74 THE POWER OF ONLINE

How digital sales are democratising
the art market

78 COLLECTORS’ CORNER
Five collectible categories to watch
PIRI 100

The trends driving this

year’s Prime International
Residential Index

THE HEADLINES
Global luxury house prices rose 3.6%
through 2024, marginally up on the 3.3%
seen in 2023 but still lagging the long-
run trend of 4.5% seen over the past two
decades. Fully 77 of the 100 markets we
track saw price growth in 2024, three were
at a standstill and 20 saw prices fall.
The improvement in the annual
growth rate was driven by strong regional
performance in the Middle East (7.2%) and The sky’s the limit Prices in Palm Beach have climbed 117% in the past five years
Latin America and the Caribbean (6.3%).
Europe lagged at 2.5%, with high interest as some markets that have seen strong also supporting prices. The collapse in
rates, slowing economies and weakened growth in recent years but which took a property listings, a feature of prime US
consumer confidence weighing on back seat in 2024. These included Austin markets in 2023 and early 2024, has eased
activity in some key markets. There were, (-4.3%) and Melbourne (-1.9%). recently – but markets such as New York
however, bright spots, especially in key are still seeing listings 10% to 20% below
second-home markets. North American MARKET DRIVERS the five-year average.
growth (2.4%) was held back by weaker Even for prime markets, interest rates On the demand side, while buyers are
growth in Canadian prime markets and remain the key story. Rates are still price conscious, especially with relatively
some US markets, such as Miami, which very high in most developed markets high debt costs, there remains strong
slowed after recent strong growth. compared with where they were as appetite for residential property among
With average growth of 3.7%, sunbelt recently as 2022, but the past 12 months wealthy buyers. Our survey of family
markets led city markets (3.5%) and ski have seen central banks move decisively offices (page 28) confirms that 25% of
destinations (2.6%). The year's strong into a new era, with cuts outpacing rate offices with an active family residential
showing from resort markets continues rises for the first time in three years. portfolio are planning new acquisitions
the trend seen since the pandemic with While the direction of travel is positive over the next 18 months.
nearly 30% growth in values in these for house prices and has supported
markets, against 25% for ski markets, and the growth we have seen in over three- THE LONG VIEW
cities lagging posting only 19% growth. quarters of markets, the reduction in debt Over the past five years a number of
costs is still not sufficient to turn this markets have seen significant upwards
MARKETS IN DETAIL into a trend in most markets. It will take repricing, with Dubai leading with a 147%
The top six spots in our ranking are taken additional rate cuts during 2025 rise. This year’s second strongest market,
by Asian and Middle Eastern markets, to restore momentums. Manila, has seen consistently strong
with Seoul (18.4%), Manila (17.9%) and On the supply side, a lack of new- growth over the same period with an 87%
Dubai (16.9%) leading the list. Saudi build inventory is still impacting many rise powered by an expanding economy
Arabian markets performed strongly markets. Disruption to supply chains, and interest from expat Filipinos
this year, with Riyadh and Jeddah both high build cost inflation and wage hikes reinvesting in the city.
making the top six. have all conspired to reduce delivery It is the US, however, which had the
At the other end of the table the of new luxury projects. To take central biggest cluster of growth markets over
weaker performers included some of the London as one example, new-build this period. Palm Beach (117%), Miami
bigger global hub markets such as New activity is currently running 25% below (84%) and Aspen (73%) are the standout
York (-0.3%), London (-1%) and Hong the 10-year average. performers, where the strength of the US
Kong (-2.2%), which have struggled to Aside from new-build volumes, a low economy and investment markets has
gain traction since the pandemic, as well inventory of existing homes to buy is fed through to substantial price rises.

54 LUXURY THE WEALTH REPORT

 With global interest rates Growth markets
edging lower over the past Top 10 markets for annual prime price growth in 2024
12 months, prime residential
price growth started to tick
higher in 2024. Our unique
Prime International Residential
Index confirms the big
themes across the world’s 18.4%
100 leading luxury city, sun Seoul
and ski destinations
8.9% 17.9%
Aspen Manila

8.9% 16.9%
Mexico City Dubai

Growth in focus
Prime residential price 8.9% 16.0%
changes by region and Corfu Riyadh

3.6%
market type

PIRI 100 9.3% 12.1%

Orange County Tokyo

7.2% Middle East

9.6%
Jeddah

Long view Hikes and lows

By world region

6.3% Latin America Top 10 markets for five-year growth to Q4 2024 Global central banks changing interest rates each month

2021 2022 2023 2024

3.2% Asia-Pacific Dubai 146.6%
Raise
20
Palm Beach 117.2%
2.5% Europe
15
Manila 86.6%
North
2.4% 10
America Miami 84.3% Sources: Knight Frank Research, Macrobond

Aspen 72.8% 5

Orange County 66.5%

PIRI
3.7%
By market type

sunbelt Riyadh 64.5%

Seoul 60.4% -5
3.5% PIRI cities
St Tropez 58.4% -10

2.6% PIRI ski Algarve 57.8% Cut

-15

THE WEALTH REPORT LUXURY 55

What US$1m buys where
Want to know how far Buying power change
your budget will stretch? sq m in 2014 2014 to 2024 sq m in 2024
Our price pagoda
Monaco +5%
confirms how many 18 19
square metres of typical
luxury accommodation Hong Kong -4%
US$1 million will buy 23 22
in the world’s top -22%
markets. This year we Singapore
41 32
have provided a view of
the dramatic shifts in -27%
Geneva
buying power over the 46 33
past decade, showing
how far your budget +43%
London
would have stretched in 23 34
2014 as well as today.
New York +2%
The big takeaway?
33 34
The impact of surging -46%
Los Angeles
growth in markets 68 37
like Miami, Dubai and
Lisbon and the impact -18%
Paris
of price corrections 51 42
and currency moves -47%
on London, Monaco Shanghai
and New York.
83 44
-16%
Vienna
53 45
-33%
Sydney
67 45

Milan -4%
54 52
-54%
Miami
126 58
-34%
Tokyo
88 58
-42%
Berlin
118 69
-59%
Dubai
188 78
-19%
Melbourne
109 87
-35%
Madrid
136 89
-51%
Lisbon
187 92
Mumbai -3%
102 99
Source: Knight Frank Research

2014 2024
56 LUXURY THE WEALTH REPORT
Regional focus
trend was Geneva, which saw 57 sales at
this level in the year to September 2024
compared with 54 in the previous year.

OUTLOOK
Despite relatively modest 1.7% growth
compared with other global regions,
Europe remains unmatched in terms of
market transparency, cultural appeal,
security and lifestyle, reaffirming its
enduring appeal for prime property
buyers. In addition to these drivers,
benign taxation is acting as a pull factor
Knight Frank’s global research team takes a deep dive for some buyers looking at Italy, Monaco
into key prime residential markets and share and Switzerland.

21.6%
their views on the outlook for the year ahead

Europe France, Switzerland and other hotspots,

sales above this level fell back as some
Europe five-year growth*

Kate Everett-Allen prospective buyers chose to rent first,

Super-prime hotspot 2024**
reflecting more cautious sentiment at the
In 2024, Europe’s prime property markets London 208 sales
top end of the market. The outlier to this
registered modest price growth. It was
a year of normalisation as the final
tailwinds of the pandemic disappeared
and stock returned to 2019 levels. Prime
prices increased by 2.5% on average over
the 12-month period.

BUYERS IN THE ASCENDANCY

Power has been shifting slowly from sellers
to buyers since late 2022 as the impact
of rate rises takes effect. Over the past 12
months the negotiating power of buyers
has increased further with demand
softening. This is due in part to the higher
cost of debt but also the growing supply
of homes. Several markets saw inventory

*Prime residential price growth five years to Q4 2024 **All hotspots 12 months to Q3 2024
levels build steadily through 2024.

THE SOUTH LEADS

Southern Europe emerged as the standout
region, with Corfu (8.9%), Porto (6.8%)
and Lucca (6.2%) leading the top-
performing markets. Eight of the top 10
European locations for growth were in
Spain, Portugal, Italy and Greece.

CITY REVIVAL
While at a global level cities
underperformed resort markets, in
Europe it was a different story. Last year
saw Europe’s cities record a 2.7% rise in
prime prices, outperforming sun (-0.1%)
and alpine (2.2%) locations for the first
time since the pandemic.

SUPER-PRIME CAUTION
As with many global super-prime
(US$10 million+) markets, 2024 saw a
slowing in Europe’s top-tier sales. Across Capital gains Apartments in Clarges, Mayfair, exemplify London's dominant super-prime market, available through Knight Frank

THE WEALTH REPORT LUXURY 57

Asia-Pacific pricing in 2025. The Malaysian market is
increasingly being viewed as a lifestyle
The US
Christine Li destination alongside Singapore and Liam Bailey
Australia. Tokyo’s market is attracting
Prices rose 3.2% on average across Asia- Prime US markets have seen some
global capital and is increasingly seen as
Pacific’s key luxury markets. While below of the most dramatic transformations of
an investment hotspot, while Vietnam
the 4.6% 10-year average, the figure is recent years. While most markets are still
is fast emerging as a luxury residential
only marginally down on last year’s level seeing growth, the stickiness of interest
market with significant potential upside
and reflects a region adapting to the rates remains the key barrier to a more
in key markets.
challenge of higher interest rates. liquid and dynamic market. If rates fall
in 2025, the market will move rapidly.

21.9%
TOP OF THE TABLE
Seoul led the globe as well as the region FUNDAMENTALS
in terms of annual price growth in Inflation and interest rates dominate the
2024,with a rise of 18.4% over the year. outlook for US prime housing markets.
This performance was supported by With mortgage rates hovering around
significant local wealth creation and the 6.9% at the end of 2024, the willingness
expansion of investable luxury residential Asia-Pacific five-year growth of existing owners to transact is limited.
developments within the capital. This inertia has affected inventory levels,
Super-prime hotspot 2024 which are 20% below the five-year average
CURRENCY MOVES Hong Kong 166 sales nationally. In some markets, such as New
Tokyo’s residential prices also rose York, they are down by more than 40%.
strongly, with the city posting a 12.1%
gain. This was fuelled by looser monetary
policy as well as surging stock market
returns, which fed investor confidence.
The yen’s depreciation also sparked
interest, propelling foreign investment in
real estate, as evidenced by an estimated
20% of high-priced condominiums
transacted in central Tokyo being
purchased by foreign buyers.

RATE IMPACT
Despite a series of rate hikes, prime
residential prices in Australian cities
have largely remained on an uptrend.
Shielded by cash buyers who are less
dependent on financing and by lower
supply, prices in markets like Perth and
Brisbane rose ahead of our PIRI 100
average. Prices in Chinese mainland
cities and Hong Kong SAR, which fell
back in 2024, are expected to turn the
corner in 2025 amid recent moves to
roll back buying curbs as well as softer
interest rates.

CHINESE MAINLAND BUYERS

Property market challenges in the
Chinese mainland have pushed some
buyers to explore other markets and
helped shape residential property
investments in the region. Chinese
mainland buyers were especially active
through 2024 in Thailand and Australia
and, as noted above, in Tokyo, where
international demand has helped push
prices higher for new-build apartments
in city centre locations.

INVESTOR OPPORTUNITIES
There are several themes influencing
investor decision-making within the
region and potentially supporting
Sunny outlook Prices in Hong Kong SAR are expected to turn a corner in 2025

58 LUXURY THE WEALTH REPORT

AFFORDABILITY IS KEY market. The boom in super-prime
This squeeze on available stock has driven
Middle East – Dubai sales has driven a 65% reduction in the
prices back up after they fell during Faisal Durrani inventory of US$10 million+ properties
late 2022 and into 2023. With prices at over the past year.
In 2024, Dubai’s prime residential market
record highs, affordability is tight in most
delivered another year of strong growth.
mainstream markets. However, with the CASH IS KING
Prices rose by 16.9% through the end of Q3
economy continuing to expand and both Cash purchases accounted for 89%
and are on track to reach 20% growth for
job and wage growth above trend, there of the total value of all transactions in
the full calendar year. Over the past five
appears to be some headroom for further 2024, highlighting the ongoing depth
years, the luxury market has undergone
price growth. of international capital chasing assets
a remarkable transformation, with prices
across the emirate. Mortgage-backed
now 147% higher than at the end of 2019.
OUTPERFORMANCE purchases, particularly in the secondary
Luxury US housing markets have generally market, are starting to grow, supported by
RISING LIQUIDITY
seen considerable outperformance over lower interest rates that have improved
Along with rising prices, transaction
recent years. Prime hotspots in Florida purchaser affordability.
volumes have continued to climb.
have experienced price growth at more
Between January and September 2024,
than double the national average, with NEW PRIME DESTINATION
the total value of sales across the city
prices in Palm Beach, for example, up by Palm Jebel Ali has quietly emerged as a
reached nearly US$31.9 billion, which is
117% since Q4 2019. This repricing process new prime market. Our analysis shows
36% higher than the corresponding period
has extended from Palm Beach and Miami that nine US$10 million+ sales were
in 2023.
to key hubs in Texas, such as Dallas and recorded here in Q3 2024, totalling US$97
Austin, as well as Aspen in Colorado, million. This brought the total value of
SUPER-PRIME LEAD
where surging demand has pushed prices sales on Dubai’s second palm-shaped
The transformation in Dubai’s market
sharply higher in recent years. island to US$1.1 billion between January
pricing has been accompanied by a sharp
and September 2024, representing 24.4%
rise in the number of super-prime (US$10
ASPEN CLIMBS HIGH of all luxury home sales in the city during
million+) transactions. The city has
Prime residential prices across Aspen rose that period.
topped our ranking of the deepest super-
by a healthy 8.9% through 2024. This was
prime markets for two consecutive years,

63.9%
second only to Orange County (9.3%) in
recording 388 sales at this level in the
our PIRI 100 basket of prime US markets.
12 months to September 2024, compared
This recent surge in prices reflects a
with second-placed New York’s 230 sales.
structural change that has affected the
Aspen market over recent years, driven by
TIGHT SUPPLY
a wave of new demand from across the US
While sales volumes across the city have Middle East five-year growth
and beyond. These buyers, seeking space
risen, new supply has been squeezed. In
and healthy lifestyles, were enabled by
2024, the number of homes available for
changes in working practices that made Super-prime hotspot 2024
purchase fell by 30%, with conditions
remote working viable. This contributed Dubai 388 sales
even more extreme at the top of the
to a price jump of 72.8% in the local
market over the past five years.

NEW YORK REVIVAL

The key outlier has been prime New York,
where prices have fallen 3.1% over the
past five years, following an inventory
overhang that weighed on the market
during 2020 and 2021, and the city
missing out on the second-home market
boom through 2022. However, with
listings increasing by 5% over the past 12
months and prices comparing favourably
with US boom markets, it is beginning to
look like a buying opportunity once more.

46.7%
North America five-year growth

Super-prime hotspot 2024

New York 230 sales
High rise Dubai tops the PIRI 100 five-year growth chart

THE WEALTH REPORT LUXURY 59

Focus on Riyadh Prime sales have been supported
by visas connected to the ownership of
Despite this rapid progress, the
transformation is at an early stage,
real estate. One option under the 2024 according to Susan Amawi, Knight Frank’s
If you’d visited Riyadh via the King Khalid
Premium Residency Visa scheme, for General Manager in Saudi Arabia. She
International Airport just five years
example, can be allocated to individuals highlights new commitments from
ago, you would have driven 45 minutes
who own real estate with a value of at the Saudi government, along with the
through unremarkable desert before
least US$1 million. 2030 Expo and the 2034 World Cup, as
reaching the city.
evidence that the pace of change is only
Now, you arrive at an airport being
PRIME LIVING set to pick up in the years ahead.
transformed to handle 120 million
The PIF has sought to promote the “There’s a real sense that this is just
annual passengers by 2030. After driving
development of homes that match the the beginning,” she says. “The Premium
just 10 minutes, you arrive at ROSHN
expectations of wealthy buyers. The Residency Visa options were only
Front, an 80,000 sq m mixed use retail
US$63 billion, 20,000-home Diriyah Gate launched last year and people are only
development featuring lifestyle and food
outlets. The adjacent ROSHN business
district brings the total area to 160,000
sq m. Fifteen minutes further on, you’re 1 King Khalid
International Airport
moving through the towers of the King
Abdullah Financial District, now home 1 2 ROSHN Front
to the regional headquarters of 75 global King Abdullah
companies, including Goldman Sachs, Financial District
Deloitte, Accenture and ExxonMobil. Diriyah Gate
The speed and scale of change is
unprecedented – and these two areas
represent the tiniest fraction of the
investment the Saudi government has
poured into its capital in just a few years.
2
The Public Investment Fund (PIF), the
nation’s sovereign wealth fund, has
announced US$314 billion in city real
estate and infrastructure projects since
2016. That’s almost 14 times the value of
London’s Crossrail project, or nearly 13
times the development value of Hudson
Yards in New York. The PIF has awarded
some US$60 billion in construction
contracts so far.

DRIVING GROWTH
The transformation is part of Saudi
Arabia’s ambitious plan to wean its
economy off fossil fuels. The country’s
Vision 2030 framework outlines sweeping
proposals to modernise infrastructure
while nurturing growth in tourism,
technology and entertainment. Growth
has been underpinned by the 2021
Regional Headquarters Program, which project in northern Riyadh is among just starting to apply. That will be pivotal
mandates that multinational companies the capital’s most sought-after prime for the real estate industry, but you can
establish their regional headquarters in neighbourhoods. Launch prices for get a sense of the momentum just by
Saudi Arabia if they are to succeed in branded residences from the Ritz-Carlton, visiting. You used to feel the difference
securing lucrative government contracts. Corinthia and Raffles have been set as every three or four years, but now you
As of January 2025, more than 400 high as 10 times the price of non-branded see a similar scale of change every four
international companies had relocated homes elsewhere in the city. or five months.”
regional headquarters to Riyadh. Alongside buildings, a Royal
As massive influx of overseas Commission for Riyadh City is seeking
residents has pushed home values close to increase liveability while ensuring “You used to feel the
to new records. Apartment prices have that new development retains the city’s
risen 75% since 2019, while villa prices cultural heritage. The body aims to plant difference every three
are up 40%. Growth has tapered more 7.5 million trees and increase green space
to 9% of the city’s footprint, up from 1.5%.
or four years, but now
recently as values reach the limits of
affordability. Still, residential transactions A metro system that opened in September you see a similar scale
2023 will eventually comprise six lines
climbed 44% during 2024 to 63,006 sales,
connecting 85 stations across the city,
of change every four
while the value of those sales rose 30% to
US$20.2 billion. giving Riyadh a distinctly European feel. or five months”

60 LUXURY THE WEALTH REPORT

Outlook 2025
SINGAPORE 0%
2025 will see buyers grow in
confidence as rates fall. However,
exuberance will be held in check by the
prevailing Additional Buyer’s Stamp
Duty rates for both local and foreign
home buyers, especially for investors
not purchasing for owner occupation.
As such, price movement is expected
to remain flat in 2025.

With interest rates likely to shift lower our forecast How did our 2024
points to positive, if modest, growth in 2025 for
forecasts stand up?
most prime housing markets. We provide our
predictions for key world cities for the year ahead In last year’s report we provided
house price forecasts for 2024
covering 25 locations. We were most
positive on Auckland (+10%) and most
DUBAI +5% greater political certainty, a high presence
bearish on Edinburgh (-2%). In the
With limited luxury supply and a rapidly of cash buyers and rising levels of
spirit of transparency, here’s how our
growing population, Dubai’s prime real global wealth mean price growth should
forecasts fared.
estate market will see growth in 2025. strengthen over the next five years.
Listings in prime neighbourhoods have
fallen sharply over the past 12 months, SYDNEY +1% Spot on (within 1%)
with the shortage even more pronounced Price growth is likely to further moderate For six markets, 24% of the total,
in the US$10 million+ segment, where in 2025, due to a federal election and we were pretty much on the money
available properties have dropped by 65%. ongoing geopolitical uncertainty. with our forecasts, the closest
Underlying this though, the stock market being Miami where we predicted
NEW YORK +3% is buoyant, properties remain tightly held, 4% growth against the eventual
Following five years of sub-par growth, and there is still a significant number of outturn of 3.8%. For both Madrid and
prime New York has regained its cash buyers seeking downsized homes. Vancouver we were within 0.5% of

84%
confidence, and a truly positive market the final growth figure.
expansion – absent since 2019 – is set to
return in 2025. Inventory levels remain Not bad (within 1% to 3%)
over 50% below the five-year average,
which will help support pricing as the Ten markets, or 42% of the total,
saw us within 3% either side of the
selling season starts to gather pace Miami price rise over five years
actual result. We were marginally too
in the spring.
positive on London (+1% expected,
MIAMI 0%
-1% delivered) and New York (+2%
GENEVA +3% After experiencing substantial growth –
expected, -0.3% delivered).
Geneva’s 3% growth forecast reflects prices have risen by 84% over the past
its continued status as a safe haven for five years – the prime Miami market is
global elites. With a strong currency, low Could try harder (within 3% to 5%)
set to relax in 2025. Annual growth
taxes and excellent quality of life, the slowed to 3.8% at the end of 2024, and Five markets, 20% of the total, saw
city remains a favourite among UHNWIs. we anticipate this trend continuing into us a little further off target. These
A planned income tax cut in 2025 in the next year. With listing volumes up 36% included Singapore where we
Canton of Geneva looks set to further over the past 12 months, market power is expected a fall of 0.5% due in part to
bolster its appeal. shifting from sellers to buyers. That said, stricter curbs on foreign investment
anyone who purchased even a few years but where the market delivered a
PARIS +2.5% ago and is now selling will still have done healthy 3.6% uptick in prices.
Despite political instability, Paris is very well indeed.
drawing increasing interest from UK and Forget it (more than 10% out)
US buyers, driven by a weak euro. Buyers HONG KONG 0%
whose plans have been on hold are eager In four markets we went way off
With the relaxation of the New Capital
to move forward following the 2024 track, undercooking the growth
Investment Entrant Scheme to cover
Olympics and France’s general election. potential in markets such as Tokyo
the residential sector, we expect the
(2% expected, 12.1% delivered)
residential market above US$6 million
LONDON +2% and Seoul (2.5% expected, 18.4%
to be more active. While mortgage rates
delivered) and taking rather too
Expect slower recovery in the short term remain relatively high compared to rental
positive a view on Auckland (+10%
as non-dom tax status ends and stamp yields, scarcity of supply and attractive
expected, -3.2% delivered).
duty for second homes is hiked. However, pricing will entice potential investors to
the relative value since the last peak, re-enter the market.

THE WEALTH REPORT LUXURY 61

Hottest
housing
markets
Knight Frank’s global teams report
on the markets set to outperform

Downtown Dubai
and Business Bay,
Dubai, UAE
Faisal Durrani,
Knight Frank Middle East
Anchored by the iconic Burj Khalifa, Toujours Provence The Luberon, France
Downtown Dubai offers a world-class
lifestyle with attractions such as the
Dubai Mall, Dubai Opera and Dubai
Jerónimos, The Luberon,
Fountain. Property prices have surged Madrid, Spain Provence, France
13.7% to US$765 per sq ft in the past year,
Kate Everett-Allen, Kate Everett-Allen,
driven by strong population growth and
Knight Frank Research Knight Frank Research
a shortage of luxury homes in the city.
A recent record-breaking US$21.8 million Madrid is attracting prime buyers with With global accessibility and wealth
sale of a Kempinski residence underscores its safety, culture, climate, green spaces, mobility on the rise, the Luberon, in the
the area’s appeal. Adjacent Business Bay, international schools and business- heart of Provence, remains a favourite for
defined by the Dubai Canal, is emerging friendly environment. Developers are wealthy buyers from across Europe and
as a hub for luxury branded residences crafting luxurious homes across branded beyond. Top-class international schooling
and offers premium waterfront living. residences and boutique projects. The supports those looking for a primary
city’s enviable lifestyle and warm climate residence, while the world-renowned
WHO’S BUYING appeal to northern Europeans as well as culture, weather and activities entice
Business executives looking for easy a growing number of North and Latin second-home buyers. The region benefits
access to the Dubai International Americans. Many view Madrid as their from demand from Monaco, Italy and
Financial Centre, as well as investors – gateway to Europe, drawn by its language Switzerland, with buyers seeking holiday
demand from tourists for proximity to and cultural ties. One area to watch is or weekend residences within easy reach
Dubai’s top attractions is endless. Jerónimos, located next to El Retiro Park, of their main home.
which offers access to green spaces and
WHAT YOU PAY many historic buildings. WHO’S BUYING
US$12.4 million secures a three-bedroom, Wealthy Europeans looking for an easily
6,295 sq ft apartment at The Vela WHO’S BUYING accessed holiday or permanent home
Dorchester Collection, with direct views Northern Europeans with young families with proximity to the Mediterranean.
of the Burj Khalifa. looking for a sunny, safe, cultural city
with top international schools. WHAT YOU PAY
DO EXPECT US$1.5 million will buy a four-bedroom
A non-stop parade of luxury yachts WHAT YOU PAY farmhouse in the Luberon, around half
navigating the Dubai Canal, the world’s US$7 million buys a three-bedroom of what you’d pay for a similarly sized
largest pyrotechnics display on New penthouse looking across El Retiro Park. property in the hills behind Cannes.
Year’s Eve at the Burj Khalifa, and an
endless selection of global cuisines served DON’T EXPECT DO EXPECT
everywhere from street-side cafés to fine- A fast pace – this is Spain, where life To enjoy a relaxed pace of life within a
dining restaurants. revolves around relaxed al fresco dining two-hour flight of London, Paris or Berlin.
and socialising late into the night.

62 LUXURY THE WEALTH REPORT

Snowmass, Sunshine Coast, Manila Bay, Manila,
Colorado, US Queensland, Australia Philippines
Riley Warwick, Michelle Ciesielski, Christine Li,
Douglas Elliman McGrath Knight Frank Asia-Pacific
Long overshadowed by Aspen, Snowmass The Sunshine Coast is on the radar for Manila’s prime residential prices are the
has outperformed over the past five years, downsizers and families attracted to the fastest growing across the world, topping
with prime prices increasing by more region’s magnificent beaches, the rolling Knight Frank’s Prime Global Cities
than 100% since the beginning of 2020, hills of the hinterland, and the modern Index since 2023. Luxury residential
compared with a 70% increase in its more healthcare and education facilities. Prices properties in and around Manila Bay have
famous neighbour. Retail, restaurants reflect limited prime supply in the Noosa enjoyed a surge in popularity, resulting
and lifestyle amenities have significantly waterfronts, with new luxury homes in significant appreciation in valuations
improved. Local recommendations mostly confined to a handful of projects. driven by high pre-selling prices. Local
include Heather’s, Rock Island Oyster Bar New apartment opportunities are likely wealth creation has spurred the rapid
and Kenichi. Despite the recent boom, to grow as Maroochydore emerges as expansion of investable luxury residential
the best properties in Snowmass still the new city centre for the region. The developments, particularly in the city’s
command prices nearly 40% lower than Sunshine Coast, along with the city of core business districts, enticing foreign
their counterparts in Aspen. Brisbane, will co-host the Olympic and investors from within Asia-Pacific.
Paralympic Games in 2032. Interest is particularly strong in leisure-
WHO’S BUYING oriented residential properties.
Once primarily a haven for second-home WHO’S BUYING
buyers, the number of people seeking a Active retirees seeking a relaxed lifestyle WHO’S BUYING
full-time base is rapidly increasing. by the seaside and thriving families Buyers from the wider Asia-Pacific region
immersed in community activities. seeking luxury at an attractive price point.
WHAT YOU PAY
US$11.3 million buys a four-bedroom, WHAT YOU PAY WHAT YOU PAY
4,236 sq ft ranch home with views across US$2 million buys a three-bedroom US$14 million buys a 10,000 sq ft
the mountains. luxury apartment with expansive water penthouse overlooking Manila Bay with
views close to Hastings Street village. hospitality services.
DON’T EXPECT
To take it easy. Mountain activities DO EXPECT DO EXPECT
continue beyond the snow season, with Year-round sunshine and the perfect To be flanked by iconic resort complexes
hiking, mountain biking and rodeo taking climate for taking a dip in the ocean or that have transformed the Bay area into a
centre stage. enjoying the great outdoors. leading lifestyle destination.

Magic mountains Snowmass, Colorado

THE WEALTH REPORT LUXURY 63

Kai Tak, Hong Kong SAR
Lucia Leung,
Knight Frank Hong Kong
The former Kai Tak Airport by Victoria
Harbour is being transformed into a
vibrant new urban hub, with residential
and commercial developments focusing
on tourism, culture, recreation, sports
and community facilities. Plans are
under way for new mass transit systems
to connect Kai Tak with East Kowloon.
Several residential projects are proving
popular, including Cullinan Sky, Pavillia
Forest, The Henley and Monaco.

WHO’S BUYING
Families seeking a cosmopolitan lifestyle
and access to sports and leisure facilities.

WHAT YOU PAY

US$10.4 million buys a 1,870 sq ft
apartment at Pano Harbour, where
around 90% of the units enjoy views over
Victoria Harbour.

DO EXPECT
All the buzz and bustle of the city, plus
easy access to mountains and extensive
hiking trails for outdoor enthusiasts.

Harbouring ambitions Kai Tak, Hong Kong SAR

Phuket, Thailand
Christine Li,
Knight Frank Asia-Pacific
Dubbed the Pearl of the Andaman,
Phuket’s beaches are world renowned,
boasting turquoise waters set against
spectacular limestone cliffs. Combined
with vibrant nightlife, this makes it the
perfect getaway for holidays, but the
idyllic natural setting has also made the
island paradise the ideal destination
for a second home. Demand for quality
residences on the island from diverse
international sources remains high and
sales of condominiums have soared in
recent years, with the residential market
entering a development boom.

WHO’S BUYING
International buyers looking at a top-tier
destination for luxury retreats.

WHAT YOU PAY

Just under US$4 million buys a 7,000 sq ft
beachfront penthouse with a private pool.

DON’T EXPECT
Unbroken scenes of arcadian tranquillity –
the island is transforming into a global
luxury destination with international
schools and wellness facilities. Beach life Phuket, Thailand

64 LUXURY THE WEALTH REPORT

Period charm Islington, London

Islington, London, UK Sevenoaks, Kent, UK

Tom Bill, Tom Bill,
Head of UK Residential Research Head of UK Residential Research
This north London neighbourhood is This picturesque town is popular with
popular with professionals who like the families for its high-quality amenities, and
proximity to the City and central London, sub-30-minute train journey to central
while more creative types like being close London. Heathrow and Gatwick airports
to areas such as Shoreditch and Hoxton. are less than an hour away by car. Highly
High-quality state schools mean it is also rated state grammar schools in Kent add
popular with families. Housing is varied, to the appeal, particularly after the recent
with warehouse conversions and new tax increase on private school fees.
builds joining the area’s period homes.
WHO’S BUYING
WHO’S BUYING Anyone looking to move out of London
Anyone looking for a high-quality period but retain easy access to the capital. The
home with a private garden. The area is area offers relative value compared with
well-known for its abundance of Georgian locations such as Surrey and Berkshire.
terraced houses and Victorian villas.
WHAT YOU PAY
WHAT YOU PAY Detached houses in Sevenoaks start at
US$2.75 million will buy a classic about US$1.5 million for four bedrooms.
Georgian townhouse with a garden. Expect to pay US$2.5 million-plus for a
Prices per sq ft are less than half those five-bed property on an in-demand road
in nearby Notting Hill. and US$3.75 million to US$5 million or “Despite being close
more on a private road. to central London,
DON’T EXPECT
Anonymous urban living. Despite being DO EXPECT Islington has retained its
close to central London, Islington has
retained its local feel with a strong sense
The number of luxury amenities to grow.
Several high-end hotels are planned in
local feel with a strong
of community. and around Sevenoaks. sense of community”

THE WEALTH REPORT LUXURY 65

Through The Wealth Report’s Global Wine Cities Ranking 2025

a glass,
Top 10 rankings. For full results visit knightfrank.com/wealthreport

sparkly 1 2 3 4 5

Hong Kong
The world’s leading cities have

Singapore
New York
experienced a surge in new luxury hotel
and restaurant openings over the past few

London
years. London alone will have seen the
arrival of 20 new five-star hotels in

Paris
the five years to 2028 – a global record.
To determine which city is leading in terms
of its luxury offerings, The Wealth Report
has collaborated with data analytics firm
Wine Services to assess the diversity, 9.4% 9.4%
quality and range of fine wines being % of most expensive wines 11.2% 11.7%
poured in the best restaurants in 30 available in top 20 restaurants 8.0%
global cities
Listings above US$200

In terms of depth of offer, London leads

with 519 restaurants featuring fine
wines from the world’s top 250 wine and
champagne houses. New York and Paris
follow with 480 and 414 respectively.
480 Number of fine restaurants

If you want to indulge in the most

expensive wines, New York, London
and Dubai are your best bets, with the
median price per bottle at the top 20
restaurants in each city coming in above
60.8%

53.0%

56.4%
66.5%

63.6%
US$740. Dubai ranks highest for the
most expensive wines on offer, with
nearly 68% of wines priced over US$200.
Alternatively, if you don’t want to risk
breaking the bank, Frankfurt is your
296
293

414
519

destination of choice, with two-thirds of

the wine list priced comfortably below
this level.
But if you prize choice above all else,
then New York is where you’ll probably be
well into your second gin martini before
you’ve got to the bottom of the list, with
an average of 506 wines on offer across
the city’s top restaurants. Spare a thought 506 428 297 271 177
for those New Yorkers who have moved to Wine
Miami in recent years; they are getting by listings by
with less than half the choice. restaurant
If you simply want to impress your
guests with a selection of big-name wines,
go to Hong Kong, where an average of 547
551
nearly 12% of the world’s most expensive
wines are available at each of the city’s 627
top 20 restaurants.
747 741
Our view of luxury through the lens
of a wine glass confirms New York in top
Average
spot, with London, Singapore, Hong Kong
US$ per bottle
and Paris making up the top five.

66 LUXURY THE WEALTH REPORT

 Fine wine’s
new frontier

6 7 8 9 10
Caroline Meesemaecker, owner
and CEO of Wine Services, on the
cities and trends currently shaping
the industry

San Francisco
CITIES TO WATCH
The scene in Monaco continues to
develop rapidly, with ambitious
newcomers such as Yannick Alléno’s
Shanghai
L’Abysse Monte-Carlo joining
established players such as Yoshi and
Alain Ducasse. Dubai is emerging as
Miami

Tokyo

Dubai
a global hub, with the highest price
positioning and widest range across
venues such as Ristorante L’Olivo
and Dinner by Heston Blumenthal.
Appetite for premium wine is growing
in Seoul too – discerning drinkers
5.3%
9.2% 3.0% should head to upscale spots such
7.0% 8.0% as Evett and Cesta.

Number of fine restaurants: Listings above US$200: THE MARKET IS BOOMING –

Count of high-quality restaurants Average proportion of wine
in each city as defined by listings priced above US$200 AT BOTH ENDS
Wine Services. in each city’s top 20 restaurants. The US$200–US$400 range thrives
Average US$ per bottle: % of most expensive wines: on experience-driven consumers,
Median price of a bottle Proportion of the world’s 100 especially millennials, who are
of wine offered at the top 20 most expensive wines offered in
restaurants in each city. each city’s top 20 restaurants.
choosing premium wines such as
Tignanello and Lynch-Bages. The
Wine listings by restaurant:
Average number of wines offered
US$1,000+ segment is surging with
at each city’s top 20 restaurants. demand from collectors and investors
for labels such as La Tâche, Pétrus,
Domaine de la Romanée-Conti and
64.0%

60.2%
63.5%

Harlan Estate. This polarisation

67.9%

64.1%

signals a market where affordable

luxury and ultra-rare investments
are shaping the future, while mid-tier
spending remains stagnant.
142
193
167
137

114

DRINK LESS, DRINK BETTER

Post-pandemic, fine wine
consumption is focused on quality
over quantity, with younger,
knowledgeable consumers seeking
heritage, authenticity and memorable
dining experiences. As a result,
restaurants are seeing stable volumes
220 158 205 306 319 but higher spend per bottle, ushering
in a new era of selectivity and luxury.

WHAT’S TRENDING NOW?

For champagne, I’d pick out Dom
Pérignon Vintage – the perfect
453 442
balance between luxury and tradition.
556 558 And for still wine, I’d point to
Sassicaia. The original super-Tuscan,
it remains a stalwart on top restaurant
748
wine lists worldwide, offering
Bordeaux-like elegance with a distinct
Source: Wine Services Italian identity.

THE WEALTH REPORT LUXURY 67

 7

8
2 3

Source: BOAT International

While the classic superyacht hotspots retain

their status, a wave of alternative destinations
are attracting owners seeking something beyond
the traditional cruising grounds

Yacht spots
68 LUXURY THE WEALTH REPORT
 This heatmap, using data from BOAT
4
International, captures the movement of
the global superyacht fleet over the past Indonesia’s 18,000 islands offer endless
12 months, confirming established luxury possibilities for discovery. Campbell
hotspots and highlighting emerging hubs. highlights Wayag Island as a perfect
showcase for the area’s spectacular
THE CLASSICS beauty, epitomising its appeal for
adventurous owners.
1
The Mediterranean remains the
5
undisputed summer paradise for
superyacht owners. As Stewart Campbell, New Zealand stands out as the Pacific’s
Editor-in-Chief of BOAT International, premier yachting haven. According to
puts it, “there is no rival” during the May Campbell, Australia “can’t compete with
to September season. The glamorous the cruising grounds that New Zealand
stretch from Monaco to Genoa forms offers”. Its strategic position provides
the heart of the action, while the waters perfect access to French Polynesia
around Greece and Turkey hold growing and Fiji, though Mediterranean-based
appeal, and the timeless charm of Capri owners face significant challenges. The
continues to captivate the yachting elite. substantial fuel costs of relocating yachts
Contrary to popular belief, Campbell there, combined with long-haul flights for
notes that the off-season doesn’t trigger visits, explain why many are, as Campbell
a mass exodus to the Caribbean – only puts it, “quite happy to stick to the Med.”
about 10% of the Mediterranean fleet
makes the transatlantic journey, with
many owners instead using the winter 6
for maintenance and refurbishment.
Alaska and western Canada, while less
frequented due to limited harbours along
the Pacific coast, rewards intrepid sailors
2
with breathtaking scenery once they
Southern Florida is the second reach British Columbia and beyond. The
4
cornerstone of classic yachting region particularly appeals to owners
destinations, particularly for American seeking solitude and natural grandeur.
owners. This sun-drenched hub sees a
rhythmic migration pattern, with vessels
cruising between southern Florida and 7
New England during summer months,
For the growing fleet of explorer yachts,
while winter draws many to the glistening
owned by a younger generation of more
waters of the Caribbean.
5 adventurous owners, the Northwest
Passage and the Arctic represent the
ultimate challenges. These vessels,
...AND BEYOND capable of two to three months of
autonomous operation, appeal to those
3
seeking exclusive experiences – with only
The Red Sea is a promising new frontier a few hundred boats ever completing the
Hedonist in luxury yachting, with its unexplored Northwest Passage, such journeys offer
waters and pristine coral reefs. Saudi entry to an elite club of adventurers.
Traditionalist Arabia’s ambitious coastal developments
aim to position the region as a winter
Diver alternative to the Caribbean, leveraging 8
its proximity to the Mediterranean and
Explorer For those drawn to sporting pursuits,
connection to Indian Ocean gems like
Bermuda and the Bahamas reign
the Seychelles and Maldives. However,
Angler supreme as fishing destinations. They are
infrastructure gaps and security concerns
particularly popular among American and
around the Gulf of Aden pose challenges,
Middle Eastern owners, combining world-
Racer with exorbitant insurance premiums
class angling with luxurious amenities.
creating a growing trend for owners to
opt for the longer route around the
Cape of Good Hope.

THE WEALTH REPORT LUXURY 69

 The Knight Frank Luxury Investment Index (KFLII)
Q4 2024

12-MONTH % CHANGE 5-YEAR % CHANGE 10-YEAR % CHANGE

KFLII -3.3 21.4 72.6
HANDBAGS 2.8 34.0 85.5
JEWELLERY 2.3 20.2 33.5
COINS 2.1 23.6 47.5
WATCHES 1.7 52.7 125.1
CARS 1.2 29.5 58.9
COLOUR DIAMONDS -2.2 4.8 3.8
FURNITURE -2.8 60.5 140.9
WHISKY -9.0 -9.9 191.7
WINE -9.1 8.3 37.4
ART -18.3 1.9 54.0

Sources: Compiled by Knight Frank Research using data from Art Market Research, Notes: All data to Q4 2024 except colour diamonds (Q3). KFLII is a weighted average of
Fancy Color Research Foundation, HAGI, Rare Whisky 101 and Liv-ex individual asset performance. Contact [email protected] for full methodology

As financial markets soared in 2024, the Knight Frank Luxury

Investment Index (KFLII) fell by 3.3%, leaving collectors and investors to
navigate a changing landscape where scarcity no longer guarantees returns

The great luxury correction

THE YEAR IN REVIEW Covid-19 crisis when values fell 17%. The release seasons have been a bit of a slog,
While five out of the 10 collectibles sectors next weakest sector was fine wine, down with prices out of kilter with market
we track managed growth in 2024, even by 9.1%, impacted by rapidly changing conditions, resulting in a build-up
for the top performers the uptick was consumption patterns (see page 44). of stock.”
modest. The best – handbags – only Tom Burchfield of Liv-ex, the global Rare whisky, a market weighed down
managed 2.8%. The most surprising was fine wine exchange, notes that the “fine by a rapid growth in stock returning to
classic cars, which eked out growth of wine market enjoyed a bull run inspired the secondary market after a decade of
1.2% through the year, following a sharp by low interest rates during Covid. strong growth, had its second poor year
bear market through 2023 and the first This resulted in a lot more speculation with values down 9% in 2024, and is now
half of 2024. and prices rose across the board, with lower by 19.3% from the market’s peak
As with several of our collectible Champagne and Burgundy in particular in summer 2022.
sectors, the low growth seen in handbag surging in price.”
values belies some real strength in the Beyond interest rate rises, Burchfield INVESTMENT RETURNS
market. According to Sebastian Duthy of points to other factors behind the Take the long view and luxury
Art Market Research, “the ultimate classic downturn. “First, prices did get collectibles have delivered for investors.
handbag, the Hermès Birkin in black Togo overinflated during the bull run. A If you had invested US$1 million in
leather, is now more valuable than ever correction was needed. Second, there is a 2005 and tracked KFLII, your pot would
when sold on the secondary market.” significant stock overhang. The Chinese now be worth US$5.4 million. The same
The weakest sectors were fine art, market has not returned in force, many amount invested in the S&P 500 would
wine and whisky. Art was down 18.3%, traditional fine wine collectors now have have been worth US$5 million by the end
with the market seeing a total reversal enough in their cellars, and the next of 2024.
from the double-digit growth of 2023 generation is not yet picking up the slack. The problem for luxury collectors is
and a worse performance than during the Third, release pricing. Recent en primeur that a lot of that growth was front-loaded.

70 LUXURY THE WEALTH REPORT

 ART IN DEPTH
US$1 million KFLII
Global art sales at auction
The art market is undergoing significant
invested 20 S&P 500
structural change, not only in how art
years ago US$8bn
is marketed and purchased, but also in
US$7m terms of changing demand. Working with US$7bn

ArtTactic, we have assessed the shifts

US$6m taking place in this market. US$6bn

Looking just at auction sales from the

US$5m big three houses, Sotheby’s, Christie’s US$5bn

and Phillips, we can see that global art

US$4bn
US$4m sales peaked at US$7.8 billion in 2022,
after a two-year climb from the Covid
US$3bn
US$3m low, but by 2024 volumes had slumped
by 48% to US$4.1 billion. This lack of
US$2bn
US$2m activity impacted on values achieved –
which reached 70% of their high estimate
US$1bn
US$1m in 2024, down from 87% in 2021.
In a smaller market, contemporary
0
US$0
art continued its growth in terms of share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2005 2010 2015 2020 2025
of all sales, rising from 31% in 2021 to 38%
Source: Knight Frank Research, Macrobond
last year. Young contemporary art grew
from 10% to 13% over the period. Female artist share of
Unsurprisingly, the luxury sector auction sales
weathered the global financial crisis Young contemporary female

better than financial investments,

Market size Milan

by value
Post-war female
Paris
and with the ability to leverage these Contemporary female
Hong Kong
investments through financing, the boom
London
for collectibles lasted for well over a 60%

decade from 2008. While it took equities New York

several years to catch up, the past decade, 100% 50%

and the past five years in particular, has

90%
seen a consistent pattern of stronger 40%

returns from the financial sector. 80%

Right now, with equities’ impressive 30%
70%
performance, relatively attractive cash
yields, and strong traditional safe havens 60% 20%
like gold, investors need good reasons
to venture into the world of luxury. In 50%
10%
many cases these reasons come down to 40%
the pleasure of investing. As we noted in
last year’s edition of The Wealth Report, 30% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

the biggest driver for purchasing luxury

20%
collectibles was “The joy of ownership”,
which was ahead of “Investment” in every 10%
Lots sold by value*
world region in our Attitudes Survey Under US$50k
0
except for Asia. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 US$50k–US$1m

US$1m+
Source: ArtTactic
DIGITAL DISRUPTION
12,000
As we note on page 78, the rise of online
marketplaces has significantly altered Female artists also attracted
the luxury landscape. For established attention, with their share of sales rising 10,000

sectors, like art, it has aided transparency to account for 33% of post-war art sales

*Includes lots sold at Christie’s, Sotheby’s and Phillips

and given new buyers confidence to enter and 56% of all young contemporary sales. 8,000
the market. At the same time, online In terms of the centre of gravity of
has encouraged the expansion of the the world art market, New York still
6,000
definition of luxury collectibles. Over dominates, with a 62% market share by
the past decade we have seen handbags value sold in 2024, although London took
joined by NFTs, rare sneakers, Pokémon its biggest share in four years, with 21%. 4,000
cards and many other items. Increasingly, If all sales are down, one area
the latest collectible trend is amplified of the market is demonstrating real
2,000
and disseminated rapidly through social strength. The number of lots sold under
media. While this proliferation increases US$50,000 rose from 6,500 in 2019 to
the market size in terms of willing over 11,000 in 2024, representing 69% 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
investors, it also creates huge competition growth. In contrast, over the same period
Source: ArtTactic
for where investment is directed. lots sold over US$1 million fell by 28%.

THE WEALTH REPORT LUXURY 71

 A bidding war at Sotheby’s in June
saw Thomas Taylor’s original cover art
for JK Rowling’s Harry Potter and the
Philosopher’s Stone sell for US$1.9 million,
a new record for Potter ephemera.

The Dynasty Collection – comprising six

Air Jordan sneakers worn by basketball
legend Michael Jordan in the clinching
games of his six NBA championships –
fetched US$8 million at Sotheby’s
in February.

The first of just 56 examples made, this

1960 Ferrari 250 GT SWB California
Spyder by Scaglietti fetched US$17 million
at RM Sotheby’s in August, the first time it
had ever been offered for sale publicly.

A pair of ruby slippers worn by Judy

Garland in The Wizard of Oz became the A diamond necklace linked to the
most valuable item of movie memorabilia downfall of doomed French queen Marie
ever, selling for U$28 million at Heritage Antoinette sold for US$4.8 million at
Auctions in December. Sotheby’s in November.

In what was overall a subdued year for the big auction

houses, some stellar lots bucked the trend in 2024 –
including a certain pair of sparkly slippers and what
must surely be the most expensive banana in history

Standout sales
72 LUXURY THE WEALTH REPORT
 Images courtesy of Christie’s, Heritage Auctions/HA.com, Julien’s Auctions (Julien’s Auctions, Beatles archival photos: Beatles Photo Library), RM Sotheby’s and Sotheby’s
The baseball jersey worn by Babe Ruth
in the final home run of the 1932 World
Series became the world’s most expensive
sports memorabilia when it sold for US$24
million at Heritage Auctions in August.

Maurizio Cattelan’s duct-taped banana

attracted both headlines and bidders,
fetching over US$6 million at Sotheby’s
in November.

A 150 million-year-old stegosaurus Described as the Holy Grail of watches,

nicknamed Apex marked a new peak a Patek Philippe Grandmaster Chime
in fossil sales when it fetched US$44.6 6300 owned by Hollywood legend
million at Sotheby’s in July. Sylvester Stallone sold for US$5.4 million
at Sotheby’s in June.

CHRISTIE’S IMAGES LTD 2024

René Magritte’s L’empire des lumières

fetched US$121 million at Christie’s
CHRISTIE’S IMAGES LTD 2024
New York in November, setting a new
Hidden in an attic for almost 50 years, record for the surrealist master. A rare square 37 carat emerald owned by
John Lennon’s long-lost Framus “Help!” the Aga Khan became the most expensive
Hootenanny guitar sold for US$2.85 green stone ever sold when it fetched US$9
million at Julien’s Auctions in Times million at Christie’s in November. For
Square, making it the fifth most expensive more on coloured gemstones and other
guitar ever sold. collectibles to watch, turn to page 78.

THE WEALTH REPORT LUXURY 73

The power of online

Turbocharged by the pandemic, online continues to

transform the marketplace for art, luxury and other
collectibles, making it more global, more democratic
and more appealing to a new breed of buyer

In a generally gloomy year for art sales, gingerly. Then the pandemic hit. “It was
the online market stands out as a rare such a driver for this part of our business,”
ray of sunshine. According to estimates says Anthea Peers, President of Christie’s
by ArtTactic, the leaders in tracking this EMEA. “Events forced us to move our
space, online art sales grew 6.3% in the business online almost overnight. What
first half of 2024 compared with H1 2023 we hadn’t anticipated was the adaptability
and were on track to reach US$11.6 billion of the business and how well our clients
by the end of the year – the highest total responded to online bidding.”
since the pandemic peak in 2021. “People became very comfortable
At the auction houses, online sales buying online very quickly, and were
across all categories proved strikingly bidding six, seven, eight figures within
resilient in a challenging year. While total months,” says Lindsay Dewar, COO
2024 sales for Christie’s, Sotheby’s and and Head of Analytics at ArtTactic.
Phillips were down 25.9% to US$8.27 Any concerns that competitive bidding
billion – the second lowest result since wouldn’t be the same, or that people
2016 (only the pandemic year of 2020 was wouldn’t buy lots sight unseen proved
lower) – online-only sales dipped just unfounded, says Sebastian Fahey,
4.5% to US$736.3 million. Meanwhile, Managing Director of Sotheby’s
average prices at online-only auctions Global Fine Art.
rose 12.7%, reflecting a strategic shift by Of course, lack of choice was a factor:
auction houses as well as buyers’ growing it was online or nothing. Online sales
confidence in purchasing art and inevitably declined post-lockdown, as
collectibles online. physical channels reopened. But a general
Online is impacting traditional sales shift online has continued post-pandemic,
too. At the Sotheby’s New York day supported by ongoing investment in
sales (Modern, Contemporary and The digital platforms, better curated sales,
Collection of Sydell Miller) in November, lower price points and improved user
for example, more than a third of buyers experiences: better photography, more
bought online. Sotheby’s is not alone. detailed information, improved navigation
“Online engagement and online bidding and more robust bidding tools.
is growing across all our auctions,” says “The growth in online-only auction
Olivia Van Horn, Phillips’ Associate sales is a clear indication of evolving
Specialist, Head of Online Sales. “In H1 buyer preferences,” says Van Horn. She
2024, 70% of works sold across all auction points out that 42% of art buyers reported
formats – both live and online – were purchasing online from auction houses
purchased via online bidding.” in the past 12 months, according to
ArtTactic’s Online Art Market Report
ACCELERATING CHANGE Autumn 2024. “This trend is particularly
It’s hard to overestimate the impact of pronounced among new buyers and
the pandemic on this shift. The auction younger collectors, who are drawn to
houses and the wider art world had been the convenience and accessibility that
developing online prior to Covid-19, but online platforms offer.” Up and coming Untitled by Ayako Kokkaku

74 LUXURY THE WEALTH REPORT

THE WEALTH REPORT
LUXURY
75
Images courtesy of Christie’s, Phillips and Sotheby’s
 “The number of millennial buyers Peers. Sebastian Fahey concurs. “We
Online sale participating in our online auctions this
year has more than tripled since 2019, and
find that online auctions are the perfect
vehicle for acquiring new customers and
highlights in 2024 the number of Gen Z buyers has increased
by more than seven times,” says Fahey.
reaching new audiences. Over a third of
bidders and buyers at online auctions in
Some buyers don’t just accept the online 2024 have been new to Sotheby’s.”
channel, they prefer it. While around half Part of the reason is reach. While
SEBASTIAN FAHEY, SOTHEBY’S of the art buyers surveyed by ArtTactic traditional live sales are regional –
“The Bibliothèque de Pierre Bergé sale said they preferred buying art through a London, New York, Hong Kong SAR –
in October achieved US$2.3 million physical space (gallery exhibition, art fair online has no borders. “Buyers are
(est. US$1.1–US$1.6 million), with an completely global,” says Fahey. He adds
average of seven bidders per lot and that online is particularly important for
almost 460 bidders across 35 different reaching new audiences in emerging
countries. In total, 70% of lots sold markets. There are opportunities the
above their high estimate. Basketball other way around too, adds Lindsay
legend Kobe Bryant’s locker sold for Dewar. “In South Africa, for example,
US$2.9 million (est. US$1 million– the art market is growing, but from the
US$1.5 million) in August, with 19 outside it looks like it’s falling because
bids placed over a 20-minute battle, the rand is so weak against the dollar.
making it among the most valuable So you can buy an artwork from Strauss
items of Kobe Bryant memorabilia [a respected local auction house],
sold at auction.” and have it shipped for a much better
price than buying the same kind of
OLIVIA VAN HORN, PHILLIPS thing in New York.”
“Notable online sales include Online has transformed the breadth
nine Modern and Contemporary of the auction houses’ offerings, too.
Art auctions, a standalone sale of “Online works alongside the live auction,”
Helmut Newton photographs – says Van Horn. “We often have a sister
which achieved a 100% sell-through sale to sit alongside our live auction
rate – and a dedicated Damien Hirst
calendar. For collection sales this allows
auction that exceeded expectations,
us to sell a larger number of objects
achieving double its pre-sale estimate.
than would physically be possible in
Artists including Louis Fratino,
our saleroom spaces.”
Rafa Macarrón, Ayako Rokkaku and
Caroline Walker have continued to
BREAKING DOWN BARRIERS
achieve impressive results.”
Another aspect is democratisation.
“While online platforms have yet to make
ANTHEA PEERS, CHRISTIE’S
significant inroads at the highest end
“The charitable sale in June in
of the art market – 95% of online sales
London of the Collection of Vivienne
Open and shut Kobe Bryant’s locker in 2023 involved works priced under
Westwood is up there for me. Live and
US$50,000 – they excel in drawing a
online sales worked alongside each
or artist’s studio), one in five said they diverse and expansive audience to the
other and made £754,488. There was
now prefer to buy art online – rising to middle market,” says Van Horn. “This
such an energy around the building
one in four for younger buyers. evolution is reshaping the collector base
and the many events we hosted.
and cultivating a new generation of
The online sales gave everyone an
NEW COLLECTORS buyers who have the potential to move
opportunity to participate.”
But online is not just for the young, into higher-value segments over time.”
stresses Olivia Van Horn. “While there is It’s notable that this end of the market
JEFFREY YIN, ARTSY
a common perception that online-only demonstrated stability in 2024, with
“Pop artists and street artists
buyers are primarily younger, tech-savvy auction sales of artworks under US$50,000
are generally strong across the
individuals comfortable with making recording only a modest decline of 2.1% – a
board. We’re seeing a slight shift
high-value purchases digitally, it’s strong performance given the drop in total
in interest away from 20th century
important to challenge that assumption. art sales of 29.3% compared with 2023 and
and modern artists, such as Picasso
Our online auctions attract collectors 47.9% compared with 2022.
or Dali or Basquiat, and towards
ranging from their early 20s to their “Online is breaking down barriers,”
more contemporary names. We’re
90s, with the average age being 51. They says Fahey. “I think there was a belief that
seeing stable or increasing interest
include professionals and entrepreneurs most of our lots are, say, above a million
in contemporary artists like Inès
from industries such as tech, finance and dollars. In fact, the vast majority of items
Longevial, Daniel Arsham and
other innovative sectors. Many of these are below US$10,000. The ability to view
Yayoi Kusama, and we’re seeing
buyers are new collectors entering the art sales via websites and apps has opened up
rising visibility and interest in some
market for the first time.” a much wider audience, particularly for
emerging artists like Alfie Caine
Arguably, it’s that newness that’s those starting their collecting journeys.”
and Louis Fratino.”
most significant. “Christie’s online is Sotheby’s global digital audience
consistently the number one channel today is vast: it is the industry leader in
for attracting new clients,” says Anthea social media, with 6.7 million followers

76 LUXURY THE WEALTH REPORT

 gallery. Rather they’re starting to build
that relationship with the galleries, or
with the artists.” The actual purchase
comes later – and it may be made online.
Fahey is seeing changing behaviour
too. “We closely track the life cycle of a
bidder,” he says. “We see online purchasers
move into live sales, and we see them
cross categories too. Younger bidders
in particular are buying across multiple
categories, rather than focusing and
collecting deeply in one sector. They’re
buying what they like, rather than building
a collection that falls within a particular
period or movement. I think online is
part of that, allowing people to look easily
across multiple sales and categories.”

“It’s not just the preserve

of art world insiders
to discover new, cool
artists. That should be
accessible to everyone”

GROWTH POTENTIAL
Looking ahead, the consensus is that
online’s strong performance will
continue. “As we move into 2025,
online art sales are poised to remain
strong,” says Van Horn. “Key trends
include a growing focus on the middle
market and a continued emphasis on
user experience and personalisation.
Advances in technology will further
Dress for success Christie’s Vivienne Westwood sale CHRISTIE’S IMAGES LTD 2024
enhance buyer confidence and
engagement.” Peers also sees continued
across all platforms, while its website 2023 with 2024, we’ve seen a 50% increase upside: “We believe there remains huge
has 2 million visits per month – 1 million in new partners joining Artsy.” growth potential in online sales because
of which are unique. “We’ve observed The art market has historically been we know how many potential clients
double-digit traffic growth year over year quite opaque, but digital is changing that. exist globally.”
for the past five years,” says Fahey. “We use algorithms and generate a lot of “Looking back even just five years,
Beyond the auction houses, online data-driven insights,” says Yin. “We it would have been difficult to believe
marketplaces offer yet more choice have access to all the secondary market how far the technologies have advanced
and reach, and are the most popular data that other participants have, but and how confidence in these platforms
destination for art online: more than we also have data on our own activity, has become the norm,” says Fahey. “We
half of art buyers make a purchase from giving us probably the largest database of haven’t really found a category where
one of these. Artsy is the world’s largest, primary market activity in one place. All online doesn’t work. I think this trend
connecting more than 4,000 galleries, of that information helps us to strengthen will continue and the value of items
auction houses, art fairs and institutions personalised recommendations and offer traded will continue to increase as people
from 100 countries with collectors better curation.” become increasingly confident.”
worldwide. “We’ve got about 1.2 million Yin sees a change in buyer behaviour “We’re going to continue to expand
works of art for sale on Artsy,” says in the general art market, which he the reach of artists and galleries to
Jeffrey Yin, who became Artsy’s CEO in describes as currently being “a little bit collectors that they otherwise wouldn’t
July 2024. “More than half a million are more anaemic than it has been in the be able to connect with,” says Yin. “On
available for direct checkout through past. Collection activity is still happening. the collector side, I think about making
e-commerce.” Artsy is shining through People continue to love and have a the art world more accessible for them.
the economic gloom: it saw its second human passion for art, but the sales cycle It’s not just the preserve of art world
and third best e-commerce months in is taking longer. Some collectors are not insiders to be able to discover new, cool
May and June of this year, says Yin. necessarily purchasing the work of art at artists that really resonate with them.
“Also, comparing the first four months of a fair or the moment they walk into the That should be accessible to everyone.”

THE WEALTH REPORT LUXURY 77

Collectors’
corner
Some of the shine may
have come off the luxury
1
1980s sports cars
2
Works by female
surrealists
It’s fair to say that the classic car market
collectibles market, but isn’t firing on all cylinders at the moment,
The art market came out of the Covid-19
there are still opportunities with the HAGI Top Index down on the
lockdown period with all guns blazing.
year. 1960s classics such as the Jaguar
out there. Andrew Shirley E-type are being overtaken by their
Global growth was 29% in 2022, according
to Art Market Research. Since then, the
curates a roundup of sectors brasher counterparts from the 1980s
picture hasn’t been quite so pretty. Works
and early 1990s. Newly minted younger
to watch and highlights buyers are turning the posters from their
by female surrealists, however, have
bucked the trend. Leonora Carrington,
some notable recent sales bedroom walls into reality and snapping
a British painter who lived in South
up supercars such as the Lamborghini
America, set a new record in 2024
Countach LP5000 QV, which appeared
when Les Distractions de Dagobert was
in shows like Miami Vice. The iconic car
sold by Sotheby’s for US$28.5 million
has risen in value by around 60% over the
to Argentinian billionaire Eduardo
past five years. But it’s not just the era’s
Costantini, founder of the Latin American
supercars that are doing well, says HAGI’s
Art Museum of Buenos Aires. A good
Dietrich Hatlapa. According to his data, a
return, considering the vendor paid
Mercedes 190E 2.5-16 Evo II will now set
US$475,500 for the work in 1995. The
you back by up to £400,000, double what
market is “on fire”, confirms Anders
it was worth five years ago. An BMW E30
Petterson of analyst ArtTactic, driven by
Sport Evo is pegged at about £150,000, up
the trend for institutions and museums
50% over the same period.
to restructure their collections to better
reflect the contribution of female artists
in general, and the staging of more
surrealist exhibitions around the world.

Ranking details
Inspired by our five picks? To help you decide if
you’d like to take the plunge, we’ve ranked each
asset out of 5 based on the following factors:

OUTLAY
1 = Super-rich only
5 = Pocket money

RISK
1 = Caveat emptor
5 = Carpe diem
BMW M3 EVOLUTION 1988
UPKEEP Sold for US$162,400, RM Sotheby’s
1 = TLC 24/7
5 = File and forget LES DISTRACTIONS DE DAGOBERT
BY LEONORA CARRINGTON
Sold for US$28.5 million, Sotheby’s
FUN
1 = A quiet night in
5 = Tell all your friends

OUTLAY 2 OUTLAY 1

RISK 1 RISK 3

UPKEEP 1 UPKEEP 3

FUN 5 FUN 2

78 LUXURY THE WEALTH REPORT

3
Rare maps
4
Pokémon cards
5
Coloured gemstones
In a digital world where an app on your Do you know your Pikachu from your For millennia, jewellery has provided a
phone can plot a course from A to B in Blastoise? If not, it’s time to get up to highly portable store of wearable wealth,
milliseconds, old paper maps and atlases speed with the Pokémon card-collecting and coloured gemstones offer careful
might seem an anachronism. However, craze. And if you think buying strange connoisseurs fantastic opportunities,
in a world of shifting geopolitical tides Japanese Pocket Monster characters, says Guy Burton, Managing Director of
and data visualisations, they have never to give them their full name, is just for London jeweller Hancocks. Burmese
been more relevant, and collectable. kids, think again. “Au contraire”, agrees pigeon blood rubies, Colombian emeralds
The market is global, but Silicon Valley François​​​​ Thierry, a collecting card and velvet blue Kashmir sapphires are
tech bros (most collectors are male) specialist at Paris auction house Aguttes. the go-to stones, although spinels remain
who appreciate the synthesis between Thierry reports an increasing number undervalued, he says. To prove Burton’s
art and science that maps offer are big of investors looking for better returns point, a 10.33 carat Burmese ruby ring
buyers, says leading London-based than the stock market or real estate. sold for US$5.5 million at Sotheby’s
dealer and authority Daniel Crouch. As a Good card pickers can make profits of Magnificent Jewels auction in New York
result, prices are heading north. Crouch up to 50% a year, he reckons. Although last December – almost double its high
says a rare map produced for a Chinese Thierry recently sold a rare Pikachu card estimate. US and Asian HNWIs are some
emperor by the Jesuit priest Matteo for €148,000, and the record price paid of the most knowledgeable buyers, says
Ricci in the early 1600s that he sold for for a card was a whopping US$5.3 million, Burton. Although some collect purely as
£1.5 million in 2010 would sell for “five investment-grade cards can be had for investments, most also like to wear their
times” that now. Despite the price rises, hundreds if not tens of dollars. Thierry collections, he says. Buyers, however,
it is still much cheaper to build a world- says Van Gogh or Munch promotional must be careful, warns jewellery historian
renowned map collection than to amass Pikachu cards have been good recent Vivienne Becker, who says the gemstone
art of comparable rarity and historical investments. As with other collectibles, market is less regulated than for colour
importance, he points out. fakes are rife, so care is needed when diamonds. Stones have to be best in class
building a collection. with good provenance and ideally older
examples from classic mines such as
Muzo in Colombia.

Images courtesy of Aguttes, Daniel Crouch, Hancocks, RM Sotheby’s and Sotheby’s

AMERICAN WAR ATLAS (1776) OF THE INCHIQUIN EMERALD
MAJOR-GENERAL GEORGE PARKER Sold for £625,000, Hancocks
Sold for £1 million, Daniel Crouch

PIKACHU ILLUSTRATOR CARD

Sold for €148,000, Aguttes

OUTLAY 3 OUTLAY 5 OUTLAY 3

RISK 3 RISK 4 RISK 2

UPKEEP 3 UPKEEP 5 UPKEEP 4

FUN 2 FUN 3 FUN 2

THE WEALTH REPORT LUXURY 79

Databank
3. THE REAL ESTATE PORTFOLIO

For real estate assets, what is your preferred

investment duration?

0–3 years 3%
The numbers behind The Wealth Report
3–6 years 32%

6–9 years 28%

9 years + 37%

How do you prefer to access real estate

investment opportunities?

“Solo” direct investment 34%

Fund 19%

Joint venture 13%

THE KNIGHT FRANK 150
Debt 9%
FAMILY OFFICE SURVEY, 2025 EDITION
Private markets 8%

Mezzanine 7%
The survey is based on interviews with 150 global family offices undertaken during
November and December 2024 Public markets 6%

Preferred equity 6%

What is your preferred measure of real estate

1. THE FAMILY OFFICE 2. THE PORTFOLIO investment returns?

What type of family office best describes your Primary investments listed in descending Total return 31%
structure? order of portfolio share IRR 31%

Single 81% 1 Equities Income return 11%

Multi 12% 2 Cash Cash on cash 10%

Other structure 7% 3 Direct real estate Equity multiple 6%

3 Private equity Cap rate 6%

Where is your family office headquartered?
5 Fixed income NPV 5%
Asia-Pacific 51%
6 Private debt Which real estate sectors are you exposed to?
Europe 33%
7 Indirect real estate
North America 11% Offices 20%
8 Hedge funds
Latam 4% Luxury residential/branded residences 17%
9 Art/collectibles
Middle East 1% Industrial/logistics 14%
10 Gold/precious metals
Hotels 12%
What is the value of assets under
11 Commodities
management (AUM)? Living sectors 10%
12 Crypto/digital assets
<US$50m 6% Retail 9%

US$50m–US$100m 12%
What share of your investment portfolio Infrastructure 7%
is dedicated to indirect real estate?
US$100m–US$250m 18% Data centres 5%
All 8%
US$250m–US$500m 19% Healthcare 4%
Split by AUM
US$500m–US$1bn 13% Life sciences 1%
<US$50m 6%
>US$1bn 32% Living sectors comprises:
US$50m–US$100m 6%
Private rental sector/build to rent 4%
Do you have an operating business in your
US$100m–US$1bn 8%
portfolio? Student accommodation 3%
>US$1bn 10%
Yes 69% Affordable housing 2%

No 31%
What share of your investment portfolio Seniors housing 1%
is dedicated to direct real estate?
If yes, are real estate activities a significant
All 23%
focus of that operating business?
Split by AUM
Yes 58%
<US$50m 25%
No 42%
US$50m–US$100m 24%

US$100m–US$1bn 23%

>US$1bn 22%

80 DATABANK THE WEALTH REPORT

 Which real estate sectors would you like 4. THE PRIVATE RESIDENTIAL PORTFOLIO 6. THE FAMILY OFFICE STRUCTURE
to gain more exposure to over the next
18 months? Does your family office manage a private Is the next generation actively involved in
family residential portfolio? investment decision-making within your
Living sectors 14% family office? If so, how has this influenced
Yes 64% investment strategy?
Industrial/logistics 13%
No 37%
Luxury residential/branded residences 12% No, they are not currently involved in
27%
decision-making
Hotels 12% What are the primary objectives of
maintaining a private residential portfolio? No, they are not involved, but we plan to
15%
Healthcare 11% incorporate their input in the future
Data centres 11% Family use and legacy 44%
Yes, they are involved, and the investment
11%
Capital preservation 29% strategy has shifted significantly
Infrastructure 10%
Diversification 20% Yes, they are involved, but there has been
Offices 10%
no discernible change in investment 20%
Retail 5% Potential rental income 7% strategy

Yes, they are involved, with some shift in

Life sciences 1% What is the average number of homes in 27%
investment strategy
the private family residential portfolio?
Living sectors comprises:
Which family generations hold primary
Student accommodation 4% All 4.7
decision-making control within your
Affordable housing 4% Asia-Pacific 4.7 family office?

Private rented sector/multifamily 4% Europe 4.8 Primary Secondary Third

Seniors housing 3% Latin America 5.0 Silent generation:

6% 8% 0%
79+ years
North America 4.2
What are the main challenges to investment
Baby boomers:
in real estate? Are you considering a change to the portfolio 51% 5% 6%
60 to 78 years
in the next 18 months?
Identifying reliable partners or operators 23% Gen X:
36% 22% 6%
44 to 59 years
Tax regimes 20% No changes planned 62%
Millennials:
High competition for assets 19% Undecided 9% 8% 44% 44%
28 to 43 years
Regulatory and compliance barriers 17% Yes, considering both purchase and sale
16% Gen Z:
of homes 0% 21% 44%
up to 27 years
Limited expertise 8%
Yes, considering the purchase of additional
9%
Lack of market transparency 7% home(s) Is the family office’s leadership primarily
represented by male or female family
Access to capital or finance 7% Yes, considering the sale of home(s) 4%
members?
Which of the following ESG-related property Mixed 31%
investments have you invested in or are you
5. THE YACHT PORTFOLIO
looking to invest in? Primarily female 9%

Have Looking Does your family office currently own or Primarily male 60%
invested to invest charter a large yacht (24m or larger)?
Improving the ESG performance of No 74%
24% 16%
commercial property
No, but we are considering it 7%
Solar power generation 28% 22%
Yes, we own 18%
Wind power generation 11% 14%
Yes, we lease 1%
Renewable energy battery storage 20% 29%

Environmental credits, such as How do you foresee the preferred model for
10% 27% yacht ownership evolving in your family office?
carbon credits

Nature restoration, such as Charter will become more attractive 23%

7% 16%
rewilding or nature conservation
Ownership will become more attractive 46%
Which of the following impact investment
We will explore other models 31%
strategies have you considered?
If your family office owns a yacht, is it used
Have Looking
invested to invest for any philanthropic activities, such as
marine conservation efforts or hosting
Climate and environmental
26% 42% charitable events?
sustainability
No 89%
Education and skills development 16% 17%
Yes 11%
Healthcare and medical research 17% 27%

Social equity and inclusion 11% 12%

Community development and

9% 17%
economic empowerment

Arts, culture and heritage

22% 21%
preservation

THE WEALTH REPORT DATABANK 81

 PRIME INTERNATIONAL RESIDENTIAL INDEX
PIRI 100

Annual % change in prime residential prices, 2024

RANK MARKET % RANK MARKET %

1 Seoul 18.4 51 Los Angeles 3.4
2 Manila 17.9 52 Rio de Janeiro 3.1
3 Dubai 16.9 53 Bucharest 2.3
4 Riyadh 16.0 54 Geneva 2.0
5 Tokyo 12.1 55 Courchevel 1850 2.0
6 Jeddah 9.6 56 Lausanne 2.0
7 Orange County 9.3 57 Gstaad 2.0
8 Corfu 8.9 58 Lake Como 1.8
9 Mexico City 8.9 59 Oxford 1.6
10 Aspen 8.9 60 Vancouver 1.5
11 Mustique 8.8 61 Venice 1.5
12 Nairobi 8.3 62 Bangkok 1.4
13 Cayman Islands 8.0 63 Verbier 1.1
13 Marrakesh 8.0 64 Dallas 1.1
15 Buenos Aires 7.3 65 Taipei 1.1
16 Portofino 7.1 66 Berlin 1.1
17 Porto 6.8 67 Sydney 1.1
18 Delhi 6.7 68 Shanghai 1.0
19 São Paulo 6.6 69 Rome 0.9
20 Lucca 6.2 70 Paris 0.8
21 Mumbai 6.1 71 Guangzhou 0.7
22 Val d'Isère 6.0 72 Ibiza 0.7
23 Prague 5.8 73 Stockholm 0.6
24 Palm Beach 5.8 74 Jakarta 0.5
25 Algarve 5.6 75 Monaco 0.4
26 Madrid 5.5 76 Edinburgh 0.4
27 Perth 5.3 77 Kuala Lumpur 0.1
28 Lisbon 5.3 78 Chamonix —
29 Boston 5.2 78 Jersey —
30 Florence 5.2 78 Sardinia —
31 Bahamas 5.1 81 Frankfurt -0.1
32 Cape Town 5.1 82 New York -0.3
33 British Virgin Islands 5.0 83 London -1.0
34 Marbella 4.8 84 Christchurch -1.5
35 St Moritz 4.5 85 Shenzhen -1.6
36 Zurich 4.4 86 Melbourne -1.9
37 Barcelona 4.4 87 Megève -2.0
38 Brisbane 4.1 88 St Tropez -2.0
39 Oslo 4.1 89 Hong Kong SAR -2.2
40 Bengaluru 4.1 90 Vienna -2.6
41 St Barts 4.0 91 Toronto -2.6
42 Mallorca 4.0 92 Auckland -3.2
43 Dublin 3.9 93 Barbados -3.3
44 Méribel 3.8 94 Provence -3.6
45 Miami 3.8 95 Beijing -4.2
46 Washington DC 3.7 96 Austin -4.3
47 Singapore 3.6 97 Wellington -4.9
48 Gold Coast 3.6 98 Saint-Jean-Cap-Ferrat -5.0
49 The Hamptons 3.5 99 Cannes -6.0
50 Milan 3.5 100 Doha -9.6

82 DATABANK THE WEALTH REPORT

 THE KNIGHT FRANK
WEALTH SIZING MODEL

Global wealth populations

REGIONAL ANALYSIS

WEALTH POPULATION

Net worth US$10m+ Net worth US$100m+

2023 2024 2028 2023 2024 2028

Africa 18,629 19,496 22,964 1,391 1,464 1,746

Asia 814,133 854,465 928,722 31,472 33,084 35,895

Europe 338,366 343,176 359,624 16,071 16,268 17,041

Latin America 56,205 57,036 62,571 2,379 2,413 2,648

Middle East 46,199 47,437 50,813 4,659 4,696 5,085

North America 922,247 970,401 1,026,684 42,005 44,218 46,518

Australasia 47,521 49,367 51,983 1,846 1,918 2,010

World 2,243,300 2,341,378 2,503,361 99,825 104,060 110,942

TOTAL PRIVATE WEALTH (US$BN)

US$10m–US$30m US$30m–US$100m US$100m+

2024 2024 2024

Africa 167 86 156

Asia 9,362 2,711 4,053

Europe 2,571 1,658 1,544

Latin America 403 415 241

Middle East 248 230 296

North America 11,336 4,496 6,184

Australasia 339 168 156

World 24,426 9,764 12,631

MARKET ANALYSIS MARKET ANALYSIS

Share of global Share of global

US$10m+ population US$10m+ population US$10m+ population US$10m+ population
US 905,413 38.7% Mexico 18,184 0.8%

Chinese mainland 471,634 20.1% Switzerland 14,307 0.6%

Japan 122,119 5.2% Belgium 13,973 0.6%

India 85,698 3.7% Singapore 9,674 0.4%

Germany 69,798 3.0% Thailand 9,192 0.4%

Canada 64,988 2.8% Indonesia 8,120 0.3%

UK 55,667 2.4% Malaysia 7,490 0.3%

France 51,254 2.2% Netherlands 7,315 0.3%

Australia 42,789 1.8% Sweden 7,133 0.3%

Hong Kong SAR 42,715 1.8% Turkey 6,138 0.3%

Italy 41,080 1.8% Philippines 5,748 0.2%

South Korea 39,210 1.7% New Zealand 5,512 0.2%

Taiwan 28,391 1.2% Vietnam 5,459 0.2%

Brazil 21,974 0.9% South Africa 5,212 0.2%

Spain 21,275 0.9% Austria 5,168 0.2%

THE WEALTH REPORT DATABANK 83

Bigger,
This shift is being driven by the
growing wealth of UHNWIs, who are
demanding grander designs, expansive
Big ticket items

bolder,
living spaces and elaborate amenities.
According to BOAT International, The Wealth Report’s unique analysis
the 50m to 100m segment is also of the big investments (US$10m+)
experiencing rapid growth, reflecting made by the big investments (US$10+)

beyond
demand for floating palaces that blend made over the past 12 months.
luxury with functionality.
However, many of the world’s most
exclusive yachting destinations are ART: US$1.2 BILLION
struggling to accommodate larger vessels.
“This can really challenge a buyer’s In 2024, US$1.2 billion was spent at
aspirations, particularly in spots such as auction on artworks priced over US$10
Marbella’s Golden Mile,” says Pritchard. million, a fall from the US$2.2 billion
As a result, those investing in waterfront spent in 2023, and down sharply from
property are prioritising access to world- the recent peak of US$3.9 billion in
class berthing facilities, which in many 2022. Although the market for art
cases has become just as important as over US$10 million mirrored the
the home itself. overall slowdown in the art market,
the more exclusive segment of works
SPACE FOR A GROWING PASSION priced over US$100 million performed
The appetite for collectable cars is slightly better, dipping only 13% year
The world’s ultra-wealthy are thinking accelerating at an unprecedented pace. on year in 2024.
bigger – literally. Private jets are reaching Auctioneer RM Sotheby’s recorded a
record heights, yachts are growing longer milestone year in 2024, with global sales SUPERYACHTS: US$3.6 BILLION
and car collections are expanding. But as exceeding US$887 million. Over 126 2024 saw US$3.6 billion spent on
luxury assets increase in size, what does vehicles sold for more than US$1 million, 131 US$10 million+ yachts, with an
this mean for real estate? 50 auction records were broken, and a average price of US$27million. This
96% sell-through rate underscored the is down from the US$5 billion spent
demand for rare and historic models. in 2023 across 133 larger, newer
A GROWING CHALLENGE As collections grow in both value yachts, with an average price of
The private jet landscape is evolving, and volume, the practicalities of storage US$37.3 million.
with a clear shift towards larger, long- and security are becoming increasingly
range aircraft: in the US, 37.5% of private important. Many prime real estate
JETS: US$22.7 BILLION
jets now fall into this category. However, locations, particularly historic European
bigger jets present logistical challenges. cities like Florence, were never designed The private jet market experienced
Large aircraft require runways of to accommodate extensive car collections. growth in both the number of jets sold
at least 1,500m–2,500m, along with Narrow streets, limited private and the total value of sales between
refuelling, customs and hangar space. parking and strict conservation 2023 and 2024. The latest estimate
“The challenge when a client wants to regulations all equate to buyers factoring for full-year private jet sales in 2024
buy their third, fourth or even fifth home in bespoke solutions, from underground confirms that 874 jets were sold
is: can they land their jet nearby” says garages to purpose-built offsite storage. for US$22.7 billion, up 7% from the
Alasdair Pritchard, a partner in Knight “I recently had a European client US$21.2 billion spent in 2023 when
Frank’s Private Office. who had spent a lifetime building an 854 jets were purchased, with an
Saint-Tropez’s La Môle airfield unbelievable specialist car collection,” average ticket price of US$26 million.
has a short runway, for example, says Pritchard. “At the same time, he
restricting access for larger aircraft, wanted a lifestyle change from his HOMES: US$32.6 BILLION
while Venice and island destinations in busy resident city and was eyeing up
US$32.6 billion was spent on US$10
the Caribbean or Greece often lack the a smaller medieval location. But there
million+ homes across the world’s
necessary infrastructure. “This can dictate was no way a property there could
leading 12 super-prime residential
property decisions,” Pritchard adds, accommodate his collection. For serious
markets in 2024. Although this is
“so we help clients explore alternatives, collectors like my client, the right
down from US$34.2 billion in 2023,
whether that’s nearby airports with property isn’t just about location. It has
it still significantly exceeds the pre-
helicopter access or private airstrips on to work for their lifestyle, their collection,
Covid 2019 total of US$18.8 billion.
larger estates.” and their long-term vision.”
Dubai alone accounted for US$6.5
As luxury assets continue to grow, the
billion of last year’s sales.
NAVIGATING THE RISE OF SUPERYACHTS real estate market is evolving. Whether
The same thinking applies to luxury it’s runway access for private jets, deep-
yachts. Since the early 21st century, 73 water berths for superyachts, or bespoke Sources: ArtTactic, BOAT International, Aerodynamic
yachts measuring 100m or more have storage for car collections, the demand Advisory, Knight Frank Global Super-Prime Intelligence
been built, with nearly half of these for space, infrastructure, and accessibility
constructed in the past decade, according is shaping luxury property searches like
to BOATPro. never before.

84 THE WEALTH REPORT

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global opportunities.

Please contact our team to discuss your

goals and strategies for the year ahead.

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Paddy Dring Liam Bailey
Joint Head of Private Office Head of Global Research
+44 20 7861 1061 +44 20 7861 5133
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