Global wealth is on a rise and hitting new highs. Thanks to increased demand for real assets, global wealth has managed to hit record highs. According to Credit Suisse’s Global Wealth Report 2022, aggregate global wealth increased by 12.7% in 2021 to an estimated US$463.6 trillion, the fastest annual growth rate ever recorded.
According to The Sotheby’s International Realty 2023 Luxury Outlook report, the list of the most wealthy countries shows that the U.S. has added the most household wealth in 2021 followed by China, Canada, India, and Australia.
This surge in personal wealth has resulted in an influx of luxury buyers and an increase in price points in high-end property markets worldwide. Unsurprisingly, the increase in the wealth of would-be buyers has been a driver of rising prices.
This keen focus on real estate investment is hardly limited to well-off American buyers, and in the past year, ultra-high-net-worth individuals from India have flexed their purchasing power across the globe. India saw a 12% overall year-over-year increase in total wealth in 2021, according to Credit Suisse.
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“While ultra-high-net-worth individuals in India turned to the domestic market during the pandemic to purchase high-end luxury real estate, this year they are looking at international gateway cities,” says Akash Puri, director of international business, India Sotheby’s International Realty. “New York, Miami, Toronto, London, Lisbon, Dubai, Singapore, and Sydney are among the top favorites. The volatility and uncertainty in recent years have encouraged wealthy Indians to apply for residence opportunities via investment in real estate or an alternate passport,” adds Puri.
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In the United Arab Emirates, Indians constitute 43.5% of the total population. Puri says, and Indian buyers are also “among the highest number of property owners in London.”
“With the rise of the global and financially savvy Indian. buying a property is not wishful but a necessity to enhance the wealth portfolio,” Puri notes. “From a second home, the shift is now to a prudent investment decision.”