A recent report entitled Europe, Middle East and Africa Luxury Residential Real Estate Report for 2015 has found that ultra wealthy individuals are purchasing luxury properties around the world in an effort to further diversify their holdings. Furthermore, while London remains the top international location for luxury real estate, other cities throughout the world are offering excellent opportunities for the ultra wealthy investor.
Luxury Investments Reach New High
The Europe, Middle East and Africa Luxury Residential Real Estate Report for 2015 takes a closer look at the region referred to with the acronym of EMEA. The report focuses on the luxury residential real estate market in this region while also identifying the purchasing and investment opportunities available to ultra high net worth (UHNW) individuals who are interested in diversifying their holdings.
According to the report, the UHNW reached a new record high of 112.1 percent in the first quarter of 2015. This figure represents a four percent increase when compared to the fourth quarter in 2014 and a seven percent increase when compared to the first quarter of 2014. These figures illustrate the strength of the global luxury real estate sector backed by UHNW investors.
UHNW Investors Rely Heavily on Real Estate Investments
The data included in the recent report, which was collected by global wealth experts Wealth-X, found that there is a total of 211,275 UHNW individuals throughout the world. Collectively, these individuals own nearly $3 trillion worth of real estate. This figure equals approximately ten percent of their net worth. The report further found that the areas that are the most likely to appeal to UHNW investors include Dubai, Madrid and Cape Town. All three of these cities, which were featured in the report, offer luxury properties and lifestyle opportunities that are likely to appeal to UHNW investors.
Exploring the World’s Top Luxury Real Estate Options
Not surprisingly, London remains at the top of the list of EMEA regions that are likely to appeal to UHNW investors. Currently, the price per square foot for property in London is $3,103. This figure represents four times the cost of Dubai real estate, six times more than Madrid real estate and nine times more than Cape Town real estate. Furthermore, one-third of the luxury properties for sale in London are worth more than $10 million. In Dubai, eight percent of luxury properties are listed at above $10 million.
Interestingly, the report found that luxury properties with a lower price per square foot tend to be larger within the Cape Town real estate market than those with a higher price per square foot. Furthermore, luxury homes in Cape Town have an average of six bedrooms, which is much larger than the luxury homes available in Madrid and Dubai.
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