Insider Monkey

Top 100 Places Where the Rich People Own Real Estate

Ali Hassan
20 min read

In This Article:

In this article, we will discuss the top places where the rich people own real estate. You can skip our industry overview and go directly to the Top 10 Places Where the Rich People Own Real Estate.

Real estate is a diverse industry that involves buying, selling, construction, renting, and management of properties such as residential, commercial, and industrial buildings. The global economic crises have negatively impacted the real estate industry over the past few years. According to IBISWorld, the global commercial real estate industry revenue is projected to drop to $4.3 trillion by the end of 2023, at a rate of 2.5% per year from 2018. This includes an expected increase of 1.6% in revenue in 2023 due to a slightly improved economy following the reopening of global markets after the COVID-19 pandemic. 

Knight Frank in its Wealth Report shared that there will be changes in investment strategies of the wealthiest people considering the ongoing challenges. As per the report, around 69% of wealthy investors expect growth in their portfolios in 2023. According to the respondents of the Wealth Report, 31% said investors will target capital growth, 26% pointed to capital preservation, and 23% said that income generation will be the main focus for investors. Around a third of investors will seek property investments to hedge against inflation and diversify their portfolios. 

Hot Properties for Rich People

According to Knight Frank’s Prime International Residential Index (PIRI 100), average luxury house price growth declined to 5.2% in 2022. Despite the decline, almost 17% of the global ultra-high-net-worth individuals (UHNWIs) bought a home in 2022, the second strongest year on record. Out of 100 markets, around 85 reported positive price growth in 2022 with Dubai leading by 44.2%, Aspen by 27.6%, and Riyadh by 25%. 

The sales of prime residential properties, worth $10 million or more, plunged in 2022 compared to 2021 but were 49% higher than in 2019. New York, Los Angeles, and London remained the top places with the highest sales in real estate in 2022. While ultra-prime properties, worth $25 million or more, saw higher sales in New York and London. 

In 2024, the luxury real estate market is expected to improve. Almost 19% of UHNWIs plan to invest directly in income-producing properties, while 13% intend to take the indirect, or passive, approach. The most in-demand properties in 2024 are going to be healthcare, logistics, offices, and residential. Knight Frank’s report suggests that offices are expected to lead the real estate market in 2024, with London expected to be the top target. In 2023, US investors are expected to propel almost 50% of the cross-border volumes in real estate, with strong demand projected from the UK, UAE, Singapore, Canada, and Switzerland. 

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