The pace of growth in the ranks of such ultra-wealthy persons will accelerate, the real estate firm predicts.
The global population of ultra-high net worth people (net assets of $30 million or more) is forecast to rise 22 per cent in the five years to 2023, taking the total to 250,000, according to a report on wealth trends from real estate firm Knight Frank.
The ultra-wealthy population will rise at “an accelerated rate when compared with the past five years, which saw ultra-high-net-worth individuals numbers rise by 18 per cent, Knight Frank said.
“Despite a darkening economic outlook, wealth creation will remain a constant in 2019. The global UHNWI population is forecast to rise by 22 per cent over the next five years, meaning an extra 43,000 people will be worth more than $30 million by 2023, this is a remarkable performance in the expansion of wealth across the world,” Liam Bailey, global head of research at Knight Frank, said.
“Equity markets, real estate markets and luxury investments all
had a stellar year in 2017. Growth in 2018 has been good in some
cases, but has not replicated the levels seen in 2017, and the
Asian countries will see the biggest growth in UHNW individuals over the next five years. India leads with 39 per cent growth, followed by the Philippines (38 per cent) and China (35 per cent). Of the 59 countries and territories in Knight Frank’s forecasts, eight of the top ten countries by future growth are in Asia, with Romania and Ukraine taking the remaining spots.
“However, it is worth noting that some of these countries are starting from a low base. For example, Romania will have 278 UHNWIs by 2023, while Ukraine will have 485. The Philippines is forecast to have 296 UHNWIs by 2023, less than 2 per cent of the ultra-wealthy population of Japan, the biggest Asian wealth hub with 20,570,” Knight Frank said.
The firm said the forecast growth in ultra-wealthy people chimes with the findings of its latest Attitudes Survey, which shows that the majority of UHNWIs expect their wealth to increase in 2019.