Numerous ultra-high net-worth (UHNW) individuals have utilized real estate as an investment vehicle to increase their wealth, but these properties continue to have a primary purpose: first and foremost, they serve as residences.
Besides the obvious need to own a property in one’s primary business location, the time spent in other locations, whether for leisure or business purposes, may make the ownership of a secondary residence a practical and financially responsible course of action.
UHNW individuals’ personal and professional considerations, in that order, tend to drive the demand for residential real estate. Residential real estate, while it is known as a long-term safe investment, is almost always purchased because of a specific connection between a UHNW individual and a particular place. For example, many Asian UHNW individuals who buy property in the top real estate markets for investment purposes are either choosing these markets because they are building up their business activities in the region or, increasingly, because their children are going to study abroad. Some of the main cities where UHNW individuals buy residential real estate outside of their home cities are located close to elite universities, financial hubs or often both.
Lifestyle is one of the key motivating factors in the purchase of a luxury home, “ said Wendy Purvey, chief marketing office, Sotheby’s International Realty Affiliates LLC. “Consumers want homes that will meet their unique needs, whether it be a waterfront property, ski in/out access or a vineyard.”
Read more information like this in our Global Luxury Lifestyle — Wealth-X Report