Knight Frank’s latest Wealth Report reveals a significant uptick in the number of ultra-high-net-worth individuals (UHNWIs) worldwide, with nearly 70 individuals joining this exclusive club daily last year.
Surge in UHNWIs
According to Knight Frank, the global count of UHNWIs rose by 4.2% to approximately 627,000, requiring a minimum net worth of $30 million to qualify for this elite group. Interestingly, it takes just $5.8 million to rank among the top 1% of wealthy Americans.
Regional Trends
North America experienced the most rapid growth among global regions, with UHNWIs increasing by 7.2%. This surge was fueled by strong performances in US stocks and the economy, alongside hopes for technological advancements and interest-rate cuts.
Factors Driving Wealth Creation
Liam Bailey, Knight Frank’s global head of research, attributed the growth in wealth to several factors, including an optimistic interest rate outlook, robust economic performance, and substantial gains in equity markets worldwide.
Asset Performance
Wealth creation extended beyond traditional assets, with notable increases in various sectors. Gold prices surged by 15%, bitcoin witnessed a remarkable 155% jump, while residential property values and rents also experienced significant upticks.
However, Knight Frank noted a slight decline in its Luxury Investment Index, with decreases in the value of whisky, cars, handbags, and furniture despite increases in art, jewelry, and watch prices.
Future Projections
Looking ahead, Knight Frank projects a 28% increase in the total number of wealthy individuals over the next five years, with India and mainland China leading the surge. Additionally, the transfer of assets from older generations to millennials is anticipated to create unprecedented wealth.
Gender Disparity and Generational Trends
Despite the overall growth in wealth, women continue to represent a small fraction of UHNWIs, comprising just 11% of the total. Meanwhile, affluent boomers appear more pessimistic about market conditions compared to millennials, reflecting differing sentiments and investment preferences across generations.
Leave a Reply