Knight Frank launched its 2020 Wealth Report at Chelsea Barracks, a new luxury residential development in Belgravia, London

Last week saw the official launch of the 13th edition of Knight Frank’s Wealth Report at Chelsea Barracks in Belgravia, London with a new focus on on data relating specifically to ultra-high net worth individuals, providing invaluable insight for investors and those seeking to buy new homes. Here’s what you need to know

Wealth is increasing on a global scale

Despite geopolitical uncertainty, the global number of ultra-high net worth individuals (UHNWIs) is still growing and is expected to rise by 27% over the next five years, taking the total to an estimated 649,331.

The US still dominates with the largest UHNWI population (240,575), followed by China (61,600), Germany (23,000), France (18,800), Japan (17,000) and the UK (14,400). India has the fastest growing UHNWI population with an estimated 73% rise over the next five years.

Follow LUX on Instagram: luxthemagazine

New York wins for lifestyle

The report assesses 100 cities based on their global appeal as a place to invest, live and spend time. This year, New York came top, pushing London into second place followed by Paris, Hong Kong and Los Angeles.

Wellbeing is a new priority

According to The Wealth Report Attitudes Survey, 80% of UHNWIs are dedicating more time and money into their wellbeing. There is also a growing focus on wellness as a measure of national performance with Oslo in first place followed by Zurich and Helsinki tied in second place.

And so is sustainability

This year’s report discusses the impact of luxury travel on the environment, featuring insights from William Mathieson, Intelligence Director of The Superyacht Group and Thomas Flohr, Founder and Chairman of Vistajet into how their businesses are becoming more sustainable.

Read more: Darius Sanai’s Luxury Travel Views Spring 2020

Residential trends are changing

The report also includes the latest results from the Prime International Residential Index (PIRI), which places Frankfurt at the top of the second homes market, followed by Lisbon, Taipei, Seoul and Houston.

Lord Andrew Hay, the Global Head of Residential at Knight Frank, presenting data at the launch of this year’s Wealth Report

10 neighbourhoods to watch according to Knight Frank’s property experts:

1. Road to Amizmiz, Marrakech, Morocco
2. Fengtai, Beijing, China
3. Sentosa, Singapore
4. Sydney Harbour, Australia
5. St Martin-de-Belleville, The French Alps, France
6. SoPo, Berlin, Germany
7. Mahou-Calderón, Madrid, Spain
8. Maida Vale, London, UK
9. Museum District, Houston, US
10. Imperial Beach, San Diego, US

To view the full wealth report visit: knightfrank.co.uk

Restoring the Garrison Chapel

The Garrison Chapel was constructed in 1859, and functioned as an active church for 150 years before it was deconsecrated. In 2018, after an extensive refurbishment supported by the Chelsea Barracks Chapel Trust, the building was reopened as a community arts and culture space.

Watch the below video to learn more about the project:

Chelsea Barracks – The Garrison Chapel from Chelsea Barracks, London SW1 on Vimeo.

For more information on Chelsea Barracks visit: chelseabarracks.com

The number of ultra-high-net-worth individuals in the Philippines is forecast to grow at the the second fastest rate of any country, says Knight Frank’s Wealth Report 2019. Pictured here: Manila

Lord Andrew Hay. Image by John Wright

Lord Andrew Hay is Global Head of Residential at Knight Frank, the international real estate consultancy, and has built up property portfolios for some of the wealthiest people in the world. In this regular column, he is handed a theoretical sum of money by LUX and asked how he would invest it. This month, we asked Lord Hay where he would invest if he had $200m to spend on real estate in emerging markets

“Where would you invest if you had $200m to spend on real estate in emerging markets?” It seemed appropriate that I was asked this question by LUX having just returned from a business trip to Manila. With the Philippines front of mind – this is where I would start.

Follow LUX on Instagram: luxthemagazine

As reported in The Wealth Report 2019, the number of ultra-high-net-worth individuals (UHNWIs) in the Philippines is forecast to grow by 38% in the five years to 2023, the second fastest of any country. In Manila, the Business Processing Outsourcing (BPO) facilities sector is rapidly growing – currently employing 1.5m Filipinos, 1.5% of the population, and accounting for 7.5% of the economy – with the government aiming to expand this to 10-11% in 2020. This growth has boosted office rents within the metro Manila region as well as the residential market as investors snap up multiple units to lease out to BPO employees working nearby.

I would then move my attention to India. Recently the Government of India has put in place a growing number of incentives to enter India’s warehousing sector and this is an area, which seems ripe for investment. The new ‘Make in India’ programme was created to encourage manufacturing; the development of multimodal transport networks and the setting up industrial corridors such as The Delhi Mumbai Industrial Corridor (DMIC) are also supporting growth in the market.

India’s warehousing sector is ripe for investment, according to Knight Frank’s Andrew Hay. Pictured here: Mumbai

My focus would then turn to an investment in South Africa and to something that appeals to me on a more personal level – a game lodge and reservation. As interest in climate change, sustainable tourism and the concept of “natural capital” grows around the world, there is an increasing focus on Africa. Much of this is centred on South Africa and projects that can add significant value to denuded agricultural land, especially if the “Big 5” are in residence.

Read more: Why we love the Richard Mille x Roberto Mancini RM 11-04 timepiece

Back to Asia, I would look to South Korea. The government recently introduced a pre-sale price cap policy in an effort to cool its housing market. However, this currently only applies to four areas in Seoul. House prices in certain prime areas of the city have been recording price growth in excess of 15% year-on-year over the last 12-18 months, as developers rushed to redevelop older buildings. Going forward, this move is expected to rapidly cool speculation in the market and reign in accelerating prices but there is still an opportunity to invest here.

There are no restrictions on foreign nationals acquiring property in Romania, making entry into the market easier for investors, says Andrew Hay

I would then consider closer to home in Europe – the Romanian prime residential market. It recorded promising results in the first half of 2019 and, according to Knight Frank, 60% of developers active in the local market expect price increases of up to 10% per square metre in the next year. There are no restrictions on foreign nationals acquiring property in Romania either, making entry into the market easier for investors than many other markets.

Perhaps not the most glamorous of locations or assets but nonetheless a diverse and interesting portfolio and this is where I would invest $200m if considering investment across some of the world’s emerging markets.

Find out more: knightfrank.co.uk

Grevillia is a waterfront residence on the port of Saint-Jean-Cap-Ferrat, on the market for €56m

Lord Andrew Hay. Image by John Wright

Lord Andrew Hay is Global Head of Residential at Knight Frank, the international real estate consultancy, and has built up property portfolios for some of the wealthiest people in the world. In this regular column, he is handed a theoretical sum of money by LUX and asked how he would invest it. This month, we asked Lord Hay where he would buy if he had £50m to spend on a single home

“If you had £50m to spend and could buy a property anywhere in the world – where would you choose?” It sounds like a question you’d ask your friends at a dinner party and actually is something I get asked quite regularly. My answer often changes as there are so many places around the world where I’d love to live, but having just returned from my summer holiday and with the thought of sunshine and the Mediterranean fresh in my mind along with this healthy budget, I would have to choose Saint-Jean-Cap-Ferrat on the French Riviera.

Cap Ferrat is glamorous yet unspoilt. It has been a firm favourite of aristocracy and Hollywood celebrities over the years and is arguably one of the most exclusive addresses in Europe. It is easily located between Monaco and Nice, accessible both by car and helicopter making it a huge draw for wealthy clients looking for a second or third home and is somewhere they go to escape.

Follow LUX on Instagram: luxthemagazine

As we describe in the latest Knight Frank Prime France Report, the 1.3km forested peninsula is home to around 500 spacious villas on large plots and has one of the strongest international buyer profiles on the French Riviera. The Eastern side is home to the best beaches, the Port and the old town, it offers the widest array of amenities, whilst the west has a steeper coastline and good views. There are two Michelin-starred restaurants – La Voile d’Or and Le Cap and the small marina has around 560 berths.

Contemporary interiors of luxury villa Grevillia

When a client arrives on Cap Ferrat, they always ask for homes with direct access to the sea and that’s what I would look for. And, with Knight Frank recently opening its sixth office along the Cote d’Azur in Cap Ferrat, and its 22nd office in France, my team would be primed to help me.

Two properties in particular stand out to me. The first being Grevillia, on the market for €56m. This is an exceptional, waterfront residence on the port of Saint-Jean-Cap-Ferrat. It is a beautiful modern estate, comprising a principal villa, a secondary villa and a guest house – ideal for someone like me with a large family and friends who regularly join us on holiday.

Villa Neo is built into the hillside above the bay of Villefranche-sur-Mer, on the market at €15m.

The second is Villa Neo, on the market at €15m. Significantly under my €50m budget but it is a perfectly presented villa, built into the steep hillside above the bay of Villefranche-sur-Mer and provides idyllic Riviera scenery. The villa’s wide terrace, infinity pool and principal rooms face the Mediterranean Sea so by day the small sail boats moored in the azure water provide a languid but ever-changing picture while after dark, the lights of the peninsula gently sparkle against the night sky.

Read more: Louis Roederer International Wine Writers’ Awards 2019

Property prices on Cap-Ferrat range from €2,000,000 to over €200,000,000 with the most active band between €5,000,000 and €10,000,000. Prime property prices have increased by 4 per cent in the year to 2018 but this is a most extraordinary market, one that resonates far and wide with international buyers and also those based in Monaco looking for a nearby escape with a slower pace of life. The unique homes on glorious Saint-Jean-Cap-Ferrat make the market anything but predictable.

Cap Ferrat not only has a timeless quality which my wife Claire, being half-French, would adore, but it also has one of the broadest international buyer profiles of all the markets on the French Riviera. This helps protect owners’ exit strategies by ensuring the market isn’t dependent on the economic fortunes or currency shifts of one particular buyer nationality.

Find out more: knightfrank.co.uk