The Wealth Report | Middle East
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The global perspective on prime property and investment THE WEALTH REPORT 2019 REPORT THE WEALTH 2019 13th Edition CT3104_OUTSIDE_COVER_v3.indd 3 31/01/2019 12:22 THE WEALTH REPORT The Wealth Report 2019 redicting what the next 12 months have COMMISSIONED BY in store for our clients has proved to be COMMISSIONED BY Welcome to The Wealth Report an interesting process. The multitude of Lord Andrew Hay global, political and economic concerns 13th Edition EDITOR Pthat I mentioned on this page a year ago, far from being Andrew Shirley Andrew Shirley resolved, have increased and become more complex. Nevertheless, I am optimistic about the year ahead. GLOBAL HEAD OF RESEARCH GLOBAL HEAD OF RESEARCH There may be challenges, but there will also be Liam Bailey Liam Bailey Data sources considerable opportunities for our clients as markets WRITTEN BY flex. In this year’s edition of The Wealth Report we KNIGHT FRANK RESEARCH WRITTEN BY Numbers from Knight Frank’s proprietary research and from carefully highlight residential and commercial markets across Tom Bill selected third parties lie at the heart of The Wealth Report’s findings. KNIGHT FRANK RESEARCH selected third parties lie at the heart of The Wealth Report’s findings. the world that offer opportunities and options for Anthony Duggan Some of the report’s key sources are detailed below. Tom Bill Some of the report’s key sources are detailed below. those looking to invest in property. Kate Everett-Allen Anthony Duggan PROPRIETARY RESEARCH To help our clients access these opportunities, we Gráinne Gilmore PROPRIETARY RESEARCH The PIRI 100 have created a Private Office dedicated to supporting FloraKate Everett-AllenHarley The PIRI 100 Now inin itsits 12th12th year,year, thethe KnightKnight FrankFrank PrimePrime NicholasGráinne Gilmore Holt InternationalInternational ResidentialResidential IndexIndex (PIRI(PIRI 100)100) trackstracks thethe movementmovement your property needs. Find out more on page 40. Our DavidFlora Harley Ji inin luxuryluxury pricesprices acrossacross thethe world’sworld’s toptop residentialresidential markets.markets. global network has also expanded, with new associ- Sophia King The Index, compiled using data produced by our research teams Nicholas Holt The Index, compiled using data produced by our research teams ations in New Zealand and an expanded platform in William Matthews around the world, covers major financial centres, gateway cities David Ji around the world, covers major financial centres, gateway cities Europe and China, and we see great opportunities in Lily Nguyen and second home hotspots – both coastal and rural – as well Sophia King and second home hotspots – both coastal and rural – as well Japan over the next five years. as leading luxury ski resorts. CHIEFWilliam MatthewsECONOMIST as leading luxury ski resorts. With clear political leadership lacking in many parts JamesLily Nguyen Roberts The Attitudes Survey The 2019 instalment of this unique survey of the world, private individuals and corporations isThe based Attitudes on responses Survey The provided 2019 instalment during October of this and unique November survey are increasingly taking up the reins when it comes to GROUP HEAD OF MARKETING, Definitions 2018 by 600 private bankers and wealth advisers who between CHIEF ECONOMIST is based on responses provided during October and November delivering a whole range of public goods. In this edition COMMUNICATIONS & DIGITAL them manage over US$3 trillion of wealth for UHNWI clients. James Roberts 2018 by 600 private bankers and wealth advisers who between I’m very proud that we have been able to persuade Simon Leadbetter UHNWI Special thanks to Alfa Bank, ANZ Bank Australia, ANZ Bank them manage over US$3 trillion of wealth for UHNWI clients. some of the world’s leading conservationists, including Ultra-high-net-worth individual – someone with a net worth New Zealand, Barclays, Cathay United Bank, Citi Private Bank, GROUP HEAD OF MARKETING, of over US$30 million excluding their primary residence Dr Lisbet Rausing, Kristine Tompkins, Jochen Zeitz, CREATIVE HEAD OF PUBLICATIONS CTBCSpecial (Philippines) thanks to Alfa Corporation, Bank, ANZ ICEA Bank LION Australia, Asset ANZ Management, Bank ChristopherCOMMUNICATIONS Agius & DIGITAL HNWI MacquarieNew Zealand, Private Barclays, Bank, Cathay Maybank United Philippines, Bank, Citi Nedbank Private Bank,Private Caroline Rupert and Sir Richard Branson, to talk to High-net-worth individual – someone with a net worth of Simon Leadbetter Wealth,CTBC (Philippines) NIC Group, Corporation,RBC Wealth ICEAManagement, LION Asset Sumitomo Management Mitsui us about how they have been using their wealth and over US$1 million excluding their primary residence HEAD OF PUBLICATIONS Trust Bank Ltd, TrustPlutus Wealth Managers (India) and Macquarie Bank, Maybank Philippines, Nedbank Private Wealth, property to protect the environment. Their work is Kate Mowatt PRIME PROPERTY UOB Private Bank for their participation. CREATIVE HEAD OF PUBLICATIONS NIC Group, RBC Wealth Management, Sumitomo Mitsui Trust Bank fascinating and inspiring. The most desirable and most expensive property in a given location,location, generallygenerally defineddefined asas thethe toptop 5%5% ofof eacheach marketmarket Our annual update on the glamorous world of HEADChristopher OF CORPORATE Agius THIRDLtd, TrustPlutus PARTY Wealth DATA Managers (India) and UOB Private Bank for by value. Prime markets often have a significant international investments of passion also offers an intriguing COMMUNICATIONS bias in terms of buyer profile GlobalDatatheir participation. WealthInsight Provider of this year’s high-net-worth AliceHEAD Mitchell OF PUBLICATIONS wealthTHIRD distribution PARTY DATA data, GlobalData WealthInsight delivers high glimpse of what is happening outside the world Kate Mowatt qualityGlobalData intelligence WealthInsight on global Provider HNWIs ofand this UHNWIs. year’s high-net-worth Delivering a of real estate. SUB-EDITOR NOW AVAILABLE suite of research products and bespoke services, it is an intuitive NOW AVAILABLE wealth distribution data, GlobalData WealthInsight delivers high As our client base of UHNWIs and family offices Louise Bell, Sunny Creative View The Wealth Report and and vital resource for those working and hoping to work with HEAD OF CORPORATE View The Wealth Report and quality intelligence on global HNWIs and UHNWIs. Delivering a continues to grow, our focus on service becomes even properties from around the world wealthy individuals and their families, including wealth managers, COMMUNICATIONS properties from around the world suite of research products and bespoke services, it is an intuitive greater as we aim to provide market-leading advice COVER on your device today not-for-profit organisations, schools and universities, casinos, and insight backed up by a totally customer-centric BenAlice Fearnley Mitchell estateand vital agencies, resource investment for those working professionals and hoping and luxury to work brands. with SUB-EDITOR [email protected] individuals and their families, including wealth managers, approach. Being privately owned and agile allows us ILLUSTRATIONS Louise Bell, Sunny Creative not-for-profit organisations, schools and universities, casinos, to put our clients first, especially at those challenging Muti Superyacht Intelligence With the industry’s largest in-house COVER estate agencies, investment professionals and luxury brands. Harry Borden Image: times when they need us most. SHOUT team of researchers and analysts, working alongside the most Ben Fearnley [email protected] I do hope you enjoy this edition of The Wealth Report. respected market commentators, the Superyacht Intelligence ILLUSTRATIONS As always, my partners and I are keen to support and DATA VISUALISATIONS Agency is the most respected source of market analysis, insight LORD ANDREW HAY Superyacht Intelligence GLOBAL HEAD OF RESIDENTIAL guide you. NicholasMuti Rapp TBC and consultancy focused Withsolely the on industry’s this specialist largest sector. in-house SHOUT [email protected] of researchers and analysts, working alongside the most PRINTED BY DATA VISUALISATIONS respected market commentators, the Superyacht Intelligence Optichrome WINGX Founded in 2011, WINGX Advance provides business Nicholas Rapp Agency is the most respected source of market analysis, insight intelligence for the global private jet market spanning the entire and consultancy focused solely on this specialist sector. supply chain, from airports, operators and manufacturers to industry ALL KNIGHT FRANK CONTACTS: [email protected] [email protected]@knightfrank.com knightfrank.com/wealthreport investors and financial analysts. [email protected] 1 | KNIGHTFRANK.COM THE WEALTH REPORT Contents 11. 65. Global Luxury spending wealth trends Born to rewild The conservationists working The dragon still packs a punch to protect some of the world’s Results from this year’s analysis most precious habitats of global UHNWI populations page 66 page 12 Record breakers London calling The Knight Frank Luxury The world’s top spots, according to Investment Index the Knight Frank City Wealth Index – page 72 and five cities to watch page 18 Blockbuster The impact of blockchain on the The wind and the waves world of art and luxury investment An insight into the world’s page 76 private jet and superyacht fleets page 22 Keeping a cool head Practical tips for getting