t h e g l o b a l p e r s p e c t i v e o n p r i m e p ro p e rt y & i n v e st m e n t
2021 — 15TH EDITION

T H E W E A LT H R E P O R T 2 0 2 1

15th Edition

Definitions and data

How we chose our cover

EditorUHNWI

For this year’s cover we started with a notion – that ofUltra-high-net-worth individual – someone with a net worth of“emergence”. The past year has been unimaginable in soover US$30 million including their primary residence

many ways and we wanted a design that would reflect theAndrew Shirley
Deputy Editor
Flora Harley
Global Head

impact of the Covid-19 pandemic on all aspects of our lives
HNWI

but also, more importantly, how the world will emerge in a

High-net-worth individual – someone with a net worth of overpost-pandemic era. The initial concept from our designer

US$1 million including their primary residence

Ben Fearnley was of an ancient wall covered in hieroglyphs

of Research
Liam Bailey—
Written byor, as we have christened them, glyphs. This evolved into a
Prime property

multi-faceted cube – a thought-provoking way of showing how

The most desirable and most expensive property in a given

the different elements shift and combine to reveal the bigger

location, generally defined as the top 5% of each market by

picture. Every glyph emerging from the tiles relates to a partvalue. Prime markets often have a significant internationalof the story that we recount throughout The Wealth Report,

bias in terms of buyer profile

enabling the reader to follow the journey as we chart the past

Knight Frank
Research

12 months and look forward with optimism to the future.
• 	The PIRI 100 – Now in its 14th year, the Knight Frank Prime
International Residential Index tracks movements in luxury

Cameron McDonald
James Culley

prices across the world’s top residential markets. The index,	compiled using data from our research teams around theKey

Kate Everett-Allenworld, covers major financial centres, gateway cities andThese icons have been designed and positioned to help you

Patrick Gower

second-home hotspots – both coastal and rural – as wellnavigate The Wealth Report 2021 and all of its content:

Victoria Ormondas leading luxury ski resorts.

Marketing
Lauren Haasz• 	The Attitudes Survey – The 2021 instalment is based on

ATTITUDES SURVEY RESULTS

responses provided during October and November 2020by over 600 private bankers, wealth advisors, intermediaries

Public relations

and family offices who between them manage over US$3.3

Astrid Recaldin

trillion of wealth for UHNWI clients. Special thanks to
Alfa Bank, Ambit Finance, ANZ Bank Australia, ANZ Bank—ONLINE CONTENTNew Zealand, Bank of Ireland, Bank of Singapore, Barclays
Asia, China Banking Corporation, Citi Private Bank, CTBC

Sub-editing

Bank (Philippines), Dry Associates, Edelweiss, Genghis

Sunny Creative

Capital Ltd, HSBC Singapore, ICEA Lion, ICICI Bank,JB Were, Julius Baer, Kairos Capital Pte Ltd, Maybank

Design & direction

Philippines Inc., Motilal Oswal, Nedbank Private Wealth,

Quiddity MediaNCBA Bank Kenya, NH Investment & Securities Co. Ltd,

Adam Evans

RBC Wealth Management, Stanbic Bank Kenya, Sumitumo

RELATED ARTICLESFURTHER INFORMATION

Mitsui Trust Bank Ltd, TOB Partners Co. Ltd, UOB Private
Data visualisation
Supermassive
Illustration
Ben Fearnley
Matt Murphy

Bank and Westpac for their participation.
• 	T he Knight Frank Wealth Sizing Model – The model,

created by our data engineering team, measures the size of
HNWI, UHNWI and billionaire cohorts in more than 200
countries and territories.

Photography
Graham Lee
Print

All Knight Frank contacts:

View The Wealth Report and properties from around the world

Optichrome

firstname.familyname@knightfrank.com

on your device: knightfrank.com/wealthreportP1

T H E W E A LT H R E P O R T 2 0 2 1

WelcomeI

R O R Y P E N N — H E A D O F K N I G H T F R A N K P R I VAT E O F F I C E

am delighted to welcome you to the 15 th edition of
The Wealth Report.
Since the report was first published it has chronicled
a period of radical change. Donald Trump, then “just” aproperty developer, was one of our very first interviewees. We
all know what happened next. The global financial crisis swept
over us. The world adapted and survived.
But I can honestly say that during my career in property,
I have never seen things changing as quickly as they are now.
On this page 12 months ago I predicted that we were at the startof the new “Roaring Twenties”. Little did I know quite what lay
around the corner.

Some of the long-term trends that we examined last year,
such as the changing role of the office, have been supercharged
by the Covid-19 pandemic. Behavioural shifts we expected toplay out over the next five or even ten years have happened ina matter of months.
In this edition, using data and insight from our researchteams around the world, we endeavour to predict what may comenext in residential and commercial real estate markets, in thehope that it will help our clients capitalise on the opportunities
that are being created by this acceleration of trends.
This year marks the 125th anniversary of the formation of
Knight Frank. As a business we have changed radically duringthat time, growing from our valuation and auctioneeringroots in London to become a truly global full-service property
consultancy. But we remain true to our core values – delivering
innovative advice that creates tangible value for our clients,
while all the time working responsibly, in partnership, toenhance people’s lives and environments.
Covid-19 has affected all of us, whether from an economicor personal perspective. The theme of last year’s edition of
The Wealth Report was “wellness”. Entirely coincidental, butwith hindsight eerily prescient – looking after our health andthat of our families has never been more important.
I hope you are managing to stay safe through the pandemic,
and I wish you all the best during the remainder of 2021.
Do let us know if the Private Office or the wider Knight Frank
network can help in any way.

I can honestly say that during
my career in property, I havenever seen things changing as
quickly as they are now
Turn to page 54 for expert insight on
global property markets from Rory and
the Knight Frank Private Office team

T H E W E A LT H R E P O R T 2 0 2 1

P2%

6.1% Miami

Latin America

Stockholm 6.3%

Boston 6.7

Toronto 6.4%

6.7%
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Contents
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Key findings

Australasia

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Middle East

North America

Russia & CIS

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6% Tokyo
5.9%Brussel
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AfricaOpinion – The key takeaways fromthis year’s report
Interview –Vusi Thembekwayo talks
candidly to The Wealth Report

1

PART ONEPART TWO

Wealth

CitiesPrime
International
Residential
Index(PIRI 100)

PART THREE

Annual % change in luxury
residential prices in 2020*

Home

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1.6% Oxford

1.6% Rio de Janeiro

1.5% Florence

1.5% Gstaad

1.3% Provence

1.3% Verbier
1. 2%
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%
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50
m
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32 Prime movers
Research – The results of our PIRI 100
and the key trends influencing markets

12 Wealth summit
Research – What does it take to bein the top 1%?

22 Health, wealth and innovation
Research – We combine measures ofwellbeing and innovation with wealthto gauge future city prospects

38 Safe haven
Opinion – How Covid-19 is shaping
development design

en
os
Ai
re
To
Ba
wn s ng
12
ng
Ko
%
k
ng
ok -9.
2
SA
-7. %
R
3%
-6
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.9
ha
%
Du
-6
ba
Ne
%
i wY
5.9
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%
rk
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-5.1
san
%
ne
Ma
-5%
rbe
lla
Lon
5
%
don
- 4.3
%
Mad
rid
4
%
Nairo
bi -3
Kuala
.9%
Lump
ur -3
.6%
Cyprus-3.5%
Marrakesh-3.3%

0
20 A tale of two cities
Research – We explore where the wealthy
live, invest and spend time

16 Emerging affluence
Research – What does the future holdfor the world’s wealth populations?

26 Superyachts and superblocks
Insight – Home to 729 UHNWIs, we explore
the appeal of Barcelona

Sources: All data comes from Knight Frank's global network with the exception of Berlin and Frankfurt

Sardinia -3%

Riyadh -3.3%(Ziegert Research & ImmobilienScout 24); Tokyo (Ken Corporation); New York (StreetEasy); Boston, Los
18 The year passports lost their power
Angeles, Miami, San Diego, San Francisco (S&P CoreLogic Case-Shiller); Jersey (States of Jersey); Toronto
Insight – With restrictions on travel,(Toronto Real Estate Board); Vancouver (Vancouver Real Estate Board); Mexico (Sociedad Hipotecaria
Federal); São Paulo and Rio de Janeiro (Fundação Instituto de Pesquisas Econômicas); Oslo (Advokat Ek,
what next for investment migration?
Oslo); Stockholm (Svensk Mäklarstatistik AB).

-3% Mallorca-3% Bahamas

Ho

Ca

Bu

24 Cities to lead the way
Interview – Urban guru Professor Saskia
Sassen on why cities rise, fall and rise againpe

13 Paradigm shift
Analysis – A glimpse at the biggest
potential influences on wealthcreation and preservationt
esarch dos
Bu rbaai
0% B za
ab
i
h
0% Ib
u D lhi
0% Ab
ore
De
ap
0% .1% Sing
ity
-0
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. 2% Mexic
-0
%
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ubli
-0.5
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%
arta
-0.7
Jak
%
ai
-1.2
umb
M
%
-1.5
nes
Can
-1.9%
aluru
Beng
-2%
huket
-2% P
ris
-2.3% Pa

10 Resilience through turmoil
Research – Discover what impact theCovid-19 pandemic has had on wealth

40 What lies ahead?
Research – Our prime residential
forecasts for 2021
42 Next neighbourhoods
Insight – Future residential hotspots
around the world*Notes: Price changes are measured in local currency and relate to the period between 31 Dec 2019 and 31 Dec

2020 unless otherwise stated. Berlin, Brussels, Frankfurt, Houston, Kuala Lumpur, Manila, Mexico City and Taipei to
Sept 2020. Boston, Los Angeles, Miami, San Diego and San Francisco to Oct 2020. New York to Nov 2020. Tokyo –relates to all properties above ¥100m. Data for Singapore and St Petersburg is provisional.

P3

T H E W E A LT H R E P O R T 2 0 2 1

Meet theauthors
The principal contributors to thisyear’s edition of The Wealth Report

F LO RA HA R L E Y

Flora is Deputy
PART FOUR

PART FIVE

Investing

Passions

50 Trending up
Insight – Five key trends driving
the global investment landscape

66 A mixed bag
Research – The 2020 results of theKnight Frank Luxury Investment Index

52 Private property
Research – Private capital real estate
investment trends

66 Top of the lots
Insight – A selection of some of 2020’s
most noteworthy auction sales

54 Keep it in the family
Insight – How family offices are investing
post-pandemic

70 World in focus
Interview –We talk to David Yarrow, oneof the world’s best-selling photographers

56 Family fortunes
Interview – Father-and-son entrepreneurs
Andrew and Kevin Tan of Alliance Global

76 Snap happy
Insight – Looking at photography
as a collectable asset classpassion for economics,
curates the Wealth andCities sections

K AT E E V E R E T T- A L L E N

As Knight Frank’s
international residential
research guru, Katecompiles the PIRI 100,
our unique global luxury
property index

VICTORIA ORMOND

Victoria is a partner in
research team developing
market-leading insightand co-authoring our
Active Capital research

77 Databank
The numbers behind The Wealth Report
ANDREW SHIRLEYThis is the 13th edition

62 The old and the new
Insight – How the office and life sciences
sectors are being shaped by the pandemic
64 Outside the box
Insight – Our global experts nominate
some interesting opportunities

Report and, with aour capital markets

58 Travel wellInterview – Boutique French hoteliers
Alice and Jerome Tourbier explain theirapproach t o hospitality
60 Data, classified
Analysis – A look at how geospatial data
can aid investment decisions

Editor of The Wealthof The Wealth Report
Andrew has edited. He
enjoys big interviews

82 Our global network
84 Final word

and compiling the
Passions section

T H E W E A LT H R E P O R T 2 0 2 1

P4Keyfindings

Liam Bailey, Knight Frank’s Global Head of Research,journeys through The Wealth Report 2021 to offer his top takeaways

p10

The global response to the
supported the wealthy pandemicWith lower interest rates and more fiscal stimulus, asset
prices have surged, driving the world’s UHNWI population
2.4% higher over the past 12 months to more than 520,000.
The process was seen across North America and Europe,
but it was Asia, with 12% growth, that saw the real
upswing. The expansion in wealth was not universal,
with a fall in the number of UHNWIs in Latin America,
Russia and the Middle East as currency shifts and the
pandemic undermined local economies.

p16



I

n the middle of a global pandemic and the related
economic crisis, why should we be interested in
the wealthy? Simply put, if we are to understandmarket and asset performance then they form acentral part of the story.
The objective of The Wealth Report is to assess how
the fortunes of UHNWIs are changing, where they
spend time, what they invest in and what they are likely
to do next. From policymakers to investors, a lack of
insight into the behaviour and attitudes of the “1%” risks
a serious misreading of economic trends. This is theknowledge gap we fill.

Asia is the key wealth story

The US is, and will remain, the world’s dominant wealthhub over our forecast period, but Asia will see the fastest
growth in UHNWIs over the next five years, at 39%
compared with the 27% global average. By 2025, Asia will
host 24% of all UHNWIs, up from 17% a decade earlier.
The region is already home to more billionaires than any
other (36% of the global total). The Chinese Mainland is
the key to this phenomenon, with 246% forecast growthin very wealthy residents in the decade to 2025.

p14

Inequality will fuel risks to wealth accumulation
While Covid-19 is viewed as the biggest single risk tofuture wealth creation, nearly half of our Attitudes Survey
respondents (wealth managers and private bankers) expect
the growth in wealth inequality to fuel demand for policies
aimed at curbing imbalance – specifically wealth taxes –with new or proposed plans in Argentina, Canada andSouth Korea likely to be replicated elsewhere.

P5

T H E W E A LT H R E P O R T 2 0 2 1

p36

The world will be less global…

Unsurprisingly, our survey confirms international travel
will remain weak, with 84% of respondents expecting tocontinue to travel less this year. Where this trend could
become more entrenched is the notable drop in demand forinternational education that our survey reveals. However,with 11% of Asian UHNWI house purchases expected tobe driven by educational motives we may see a rise inpermanent family relocations to education hubs, with
London the main target.

p18

...but the wealthy still want options

Despite a reduced desire to travel, nearly a quarter of
UHNWIs are planning to apply for a second passportor citizenship – a remarkable 50% growth in a year.
As we note, there is a growing tension between risingtransparency concerns over citizenship-by-investment
schemes and a need to plug gaps in government finances
through these schemes.

p24Long live the city

As urban guru Professor Saskia Sassen explains, history
shows us that cities rise and fall, but always rise again.
The pandemic, far from undermining the city, has shown
the potential for rebirth – expect to hear more about the
15-minute city, green cities, place-making and the coming
redevelopment boom. No wonder, then, that development
land is the third most popular property investment pick
this year for UHNWIs. Our city leaders in 2021 for wealth,investment, business heft and innovation: London and
New York. For wellbeing: Helsinki and Madrid.

p32

House prices are rising because of
pandemic, not despite it the

Our assessment of the world’s leading prime residential
markets confirms that average price growth accelerated
over the past 12 months. While Auckland led the packwith an 18% uptick, reflecting New Zealand’s sure-footed
handling of Covid-19, even those markets hard hit by the
pandemic are seeing growth. Low mortgage rates, a searchfor space, privacy and changing commuting patterns are
helping push prices higher.

p40

p52

Expect more private investment
 in property

Despite overall property investment volumes falling in
2020, the capital deployed by private investors was still
9% above the 10-year average, far stronger than the 6%
fall in the amount committed by institutional investors.
This theme will continue through 2021 with a quarterof UHNWIs planning to invest this year. In addition todevelopment land, residential investments and logistics
will lead requirements.

p62

The pandemic is driving real
innovation
 estate

The ubiquity of Amazon and Zoom has confirmed theability of tech to concentrate wealth. However, theAttitudes Survey confirms that tech disruption is viewed
as a key post-pandemic area for investment, driving
demand in the still embryonic data centre market andthe burgeoning life sciences sector. Spurred by the
pandemic, life sciences, tech and advanced data analytics
are creating new opportunities for rethinking office spacein key markets. With 43% of investors more interested
in environmental, social and governance (ESG) focusedinvestments than 12 months ago, expect rapid growth in the
demand for green and energy-efficient buildings.

p66

Luxury investments confirm thesearch for returns
 ongoingFinally, despite logistical challenges, investors continued
to drive values higher for key collectible assets over the
past year – led by handbags (+17%), fine wine (+13%) andclassic cars (+6%). However, a shift to private sales, as
auctions were put on hold, saw the art market stutter andvalues decline. With disruption to these most global ofmarkets likely to continue through the first half of 2021,
it is the second half of the year when investors will likely
see the longer-term direction for investment performance.

The pandemic-induced residential
will continue through 2021
 mini-boom


The Attitudes Survey reveals that 26% of UHNWIs areplanning to buy a new home in 2021, with the biggest driverthe desire to upgrade main residences. Our survey points
to a growth in demand for rural and coastal properties,
with access to open space the most highly desiredfeature. The pandemic is supercharging demand
for locations that offer a surfeit of wellness – think
mountains, lakes and coastal hotspots. Demand will help
fuel price rises of up to 7% for our key markets this year.

For more articles and regular updates
throughout the year, head online
to our new digital platform

T H E W E A LT H R E P O R T 2 0 2 1

P6Africa offers a wealth of investment opportunities, but has so far struggled to fulfil itsp otential. One man aims to change that by harnessing the power of the continent’s
entrepreneurial spirit. South African venture capitalist and philanthropist
Vusi Thembekwayo talks candidly to The Wealth Report

AfricandragonINTERVIEW – ANDREW SHIRLEYP7

T H E W E A LT H R E P O R T 2 0 2 1V

usi Thembekwayo, or just Vusi as heprefers to be known, loves to talk. In
fact he makes a lot of money out of it,
flying around the world – until recently,
at least – delivering his motivationalmonologues for businesses, think-tanks, NGOs andeven the United Nations.
At the age of 17 he was granted an audience with
Nelson Mandela on his return home after winning a
global public speaking competition in the US. Mandela
went on to describe him as “the epitome of the South
Africa for which we fought”. Former Australian Prime
Minister John Howard lauds him as the “rock star of
public speaking”.
Luckily, I don’t know any of this when I findmyself sitting next to him at the launch of the 2020
edition of The Wealth Report in Kampala where I’m
the supposed main event. Even though Vusi isn’t due
to talk – he’s in town to speak at an event supportedby Knight Frank’s Uganda business – his reputation
would have added to my nerves.

Entrepreneurs and early stage
investors simply use the word
unicorn in a pitch deck andsuddenly the valuation model
doesn’t have to follow simple
laws of logic

However, after I do my bit – to polite applause – he’s
goaded into sharing “just a few of his own” thoughts.
The audience hang on his every word and afterwards
all want to pose for selfies with him. As one of the
dragons on a series of Dragons’ Den South Africa, andGQ South Africa’s Business Leader of the Year in 2019, it
turns out he is something of a celebrity.

Straight talking
Elsewhere in this report we talk about emerging
markets being back on the investment agenda. As
somebody who started their career in Africa I find thatencouraging, but dig deeper into the analysts’ notes
and it always seems to be Asia and Latin America thatare the hot tips with Africa more often than not taggedon as an afterthought.
Given the continent’s natural and human capital,
that seems short-sighted. Are investors put off by thenegative press that Africa seems to generate, and are

the headlines warranted, I ask Vusi over a Microsoft
Teams call? He doesn’t try to dodge the question.
“It’s not a particularly popular comment, but it’s thetruth as I see it – I think the average African succeedsin spite of the politicians and in spite of the system,
not because of it. So, the things you see reported aretrue. These things are not imagined. These things are
real. The media covers what’s there. You can’t makethe story up.
“There’s definitely work to be done to balance thenarrative and you see that. CNN’s African Voices, forinstance, does great work. The BBC has a platformthat does great work too. But what you will often find– often, not always – is that the average person thatsucceeds and makes it is doing so in spite of the odds,
not because of them.”
To rebalance those odds, Vusi says, a new way of
thinking is required. “My issue is now and has always
been that Africans at one point in time were liberated.
Maybe it’s time now that they liberate themselves frombeing liberated. That’s going to require a completely
new approach to how we work. A completely new
approach to how we collaborate. And a completely
new approach to how we think about the role of Africa
and the African in the rest of the world.”
Part of the problem, he suggests, is that African
economic opportunities tend to be concentrated ina power base of the few. “There is very little room for
new space and innovation. And the capital markets are
not particularly deep, so even if young people want todo something enterprising, they don’t have the means
to do so. Those are the issues that we’ve got to face.”
One of his own personal responses has been to
create a venture capital enterprise, MyGrowthFund
Venture Partners, which identifies and incubates young
entrepreneurs across the continent. Despite somenotable successes, the need to cultivate the right mindset
remains because many budding business people have got
the wrong idea about venture capital, he laments.
“Entrepreneurs and early stage investors simply
use the word unicorn in a pitch deck and suddenly thevaluation model doesn’t have to follow simple laws oflogic,” he wrote in a LinkedIn post. “So VCs are buying
into high-risk businesses that often don’t have a clear
path to margins (read profitability), but are in theundisciplined pursuit of more customers and moremarket share.
“The ‘moral hazard’ is born of the fact that many
VCs, even in Africa, are rewarded on the capital they
deploy (read manage) and the group-think of not
wanting to miss the next big unicorn, often becauseof the limited personal balance sheet exposure of thefund manager. We also have to deal with this culture of‘celebrating a successful raise’ rather than a ‘successful
year of profits’.”

Future plans
As we chat I can’t help but tell Vusi that I noticed during
my research for our interview that #VusiForPresident
seems to crop up quite a lot on Twitter in South Africa.
Does he have ambitions in that direction, I wonder?

T H E W E A LT H R E P O R T 2 0 2 1

Money moves from one part of theworld to another part of the worldin less than a split of a second andthat affects global trade. It affects
how organisations are formed

For more from Vusi
request a copyof our new Africa
Horizons report“Aspirations, yes,” is the immediate answer. “Butnot now,” he adds. “If needed I would be honoured
and privileged and I will go where people direct me togo. But it’s certainly not in the wings, not for the
next five years or so. That’s not what I’m looking at.
My greatest gift, if I am honest, is that I have been
given by God the ability to be patient. And on thisquestion I’m happy to exercise that virtue. I’m very
happy to wait.”
If he does run for political office in the future, hewants to be able to point to his credentials, he says –and for those credentials to be different to the kind thathave traditionally propelled so many of the continent’s
figureheads into power.
“I think one of the greatest challenges for Africa
has been that Africans have elected popular leaders –a group of people who had liberated their people andascended to the echelons of power. But the world haschanged. The world is not that anymore. Today, theworld is no longer binary.
“You’ve got a proliferation of new technologies,
you’ve got the collapsing of the global capital market
system. Money moves from one part of the world
to another in less than a split second and that affects
global trade. It affects how organisations are formed.
“Today, you’ve got large companies that arebigger than the size of many mid-size countries. The
liberator’s mindset never expected to have to deal withthat level of complexity. It’s – and I say this with thegreatest of respect – genuinely and honestly a horses
for courses thing.”
Continuing to steadily build his track record is
the best way to show that he’s the right horse for thecourse, Vusi tells me. “I do think we need to get to thepoint where, when Africans elect you, they ask you
about your track record. What have you done?”
So how, I wonder, would he hope to answer thatquestion? “We have a particular programme whereP8

we’re nurturing the next generation of leaders called
the VUKA Foundation. We have the vision of creating
one hundred leaders every year for the next ten years.
“We’ve got our venture capital firm where we’renurturing the next generation of innovators that arebuilding the future of this continent so that she canbecome globally competitive and part of the 21st
century. That’s my programme. Those are the things
that I’ve got to do.”With hindsight, I wish I had mentioned to Vusi
during our interview that The Wealth Report has form
when it comes to future presidents – Donald Trump was
one of our very first interviewees, long before he stoodfor office. In the light of his comments on receiving his
GQ award, though, I’m not sure what Vusi would makeof the comparison.
When the interviewer asked what life skill hethought was most important, Vusi replied: “The life
skill to take into the future is that of empathy. It issorely lacking in our world today. We live in a world thatrewards you with ‘street cred’ if you criticise. There are
no rewards for empathy.”
Listening, it seems, is just as important as talking.

PA
P 9RT ONE

W
E
A
L
T
H

T H E W E A LT HAt
R Ea
P Oglance
RT 202110

Wealth resilience
Despite the pandemic, theglobal UHNWI population grewby 2.4% during 2020
12

Benchmarking
US$4.4 million is what it takes tojoin the wealthiest 1% in the US

13

New ideas
Almost 50% of Attitudes Survey
respondents see technologicaldisruption as an opportunity
16

Emerging markets
139% five-year growth in massaffluent African households

Discover why wealth populations kept
growing despite last year’s economic
turmoil and find out what the
future holds for UHNWIs

W E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

P10RESILIENCE			
THROUGH TURMOILW O R D S – F LO R A H A R L E Y

DATA M O D E L L I N G – JA M E S C U L L E Y

Global wealth has remained firm despite the Covid-19 pandemic. We explore the latest results		from the Knight Frank Wealth Sizing Model and Attitudes Survey to understandwhy, and discover some of 2020’s winners and losers+10%Hike in value of A$ against US$ in 2020C

ovid-19 has been first andforemost a health crisis,
touching every part of the globe.
In its wake has come a recordbreaking economic crisis, posing
serious problems for government and corporate
finances. Our review of the latest wealth datashows how the pandemic has impacted on
personal fortunes globally – which will inturn impact on investment allocation andperformance. Some countries and territories
have seen their UHNWI populations contract,
but others experienced a rise.
Our Wealth Sizing Model reveals that,
globally, UHNWI numbers grew by 2.4% in
2020. While this was virtually one-third therate of growth seen in 2019, it is still not what
we would have predicted in the first half of theyear, given the impact of the virus.
The model’s results do, however, reflect
the views of the respondents (leading private
bankers and wealth advisors) to our latest
Attitudes Survey, undertaken during Q4 2020.
Half said their clients’ wealth had increasedin the past year.
Those with North American clients werethe most optimistic, with 73% citing an
increase and a further 23% seeing stability.
The region’s UHNWI population now sits at
190,085, almost 4% higher than at the endof 2019. The regions which were seemingly
able to control the virus the best, Asia andAustralasia, were the strongest performers
with growth of 12% and 10% respectively.
Among those survey respondents who
said their UHNWI clients’ wealth had
increased, three key themes emerged as towhy: diversification, equities and property.
Diversified portfolios with long-term
investment strategies, which follow trends
such as the rise of technology, allowed losses
in some areas to be offset by growth in others.
Whether across asset classes or geographies,
if done correctly this seemed to help many
to weather the storm.
Given that the Attitudes Survey shows
equities accounting for nearly a quarter of
UHNWI wealth portfolios, it is unsurprisingthat this was a major driver of wealth growthin certain countries. After most stock markets
crashed by around 30% in March as the true
extent of Covid-19 became apparent, there has
been a remarkable bounce back, particularlyin the US where the S&P rallied by almost
70% (see graphic opposite).
W i t h l o c k d o w n s a n d m o ve m e n t
restrictions forcing the wealthy to stay athome, many were able to play a more activerole in their investment strategies. Anyone
able to time equity sales or acquisitions inline with market movements would havebenefited significantly.
As the largest single element in the average
UHNWI investment portfolio – 27%, according
to the Attitudes Survey – property values andholdings play a significant role in total wealthlevels. Some survey respondents believedthat the capital value of their clients’holdings had fallen, but the general message
was one of resilience.
The positive impact of property wasparticularly noted by respondents from
Australasia, who were the second most
optimistic, with 84% citing an increase in
their clients’ wealth. The strong performanceof property and the Australian dollar, up 10%
against the US dollar on the year, helped theregion’s UHNWI population grow by 10%, with
Australia the eleventh biggest riser overall.

Currency fluctuations – our wealth model
measures wealth in US dollars – helped
enhance the value of some portfolios.
Despite the growth mentioned above,
almost a quarter of respondents to our survey
said their clients’ wealth had decreased, withnearly all citing the pandemic as the reason.
Three regions saw UHNWI declines – Latin
America with -14%, the Middle East with -10%,
and Russia & CIS with -21%. Again, currency
fluctuations played a part: the Russian rouble
was down 16% against the US dollar in 2020.
Unsurprisingly, the countries registering
the largest declines were some of thehardest hit by the pandemic, particularly
Italy, France and Spain, which saw theirUHNWI populations fall by 3%, 9% and
14% respectively. Tourism came to a virtual
standstill and economies such as Spain andthe UAE that are heavily reliant on overseas
visitors were particularly affected.
The rollout of vaccines at the start of 2021
is an extremely positive signal, and one thatmarks the beginning of a new economic cycle
in a post-pandemic world. As we explain on
page 16, UHNWI populations look set tocontinue growing.

-16%
Slide in Rb against US$ in 2020

For more detailed wealth numbers
for 44 countries and territories,
head to the Databank on page 82

P11

T H E W E A LT H R E P O R T 2 0 2 1

GLOBAL WEALTH DISTRIBUTION
Regional round-up

Levels of prosperity
The proportion of the world’s millionaires and billionaires
by region in 2020

The number of UHNWIs per region
and annual change from 2019 to 2020
521,653

World

+2%

MILLIONAIRES

EuropeNorth
America+1%

Latin
America2%

Russia
& CIS

+4%

-21%

151,665

Asia

1 0, 2 8 9MiddleEast
2%

North America

Europe

Asia

42%

29%

22%
Australasia
1%

+12%

Africa0.5%

1 9 0,0 8 5

Russia & CIS 1%

29,880

1 16,697

BILLIONAIRES

14,504

MiddleEast
Africa3,270

Australasia
5, 263-10%Middle
East
6%

+10%

+5%

Latin America

Asia

North America

Europe

36%

31%

18%

Russia
& CIS
4%

-14%

Australasia
2%
Africa1%
Latin America 3%

Germany 3%

US 4%South Korea 6%

Canada 8%

Japan 9%Switzerland 9%

Saudi Arabia 10%

Singapore 10%

Sweden 11%

The countries
that saw the biggest
increase in their UHNWI
population in 2020

China 16%

Top 10 risers-1 % UK-3% Italy-5% Mexico-9% France-11% Russia-12% Brazil-14% Spain-20% Turkey

Source: Knight Frank Wealth Sizing Model-22% UAE

The countries
that saw the biggest
decline in their UHNWI
population in 2020-33% Greece

Top 10 fallers

Note: Ranked by the absolute change in UHNWIs

Equity and currency play

Resilience of wealth

Change in 2020 for selected currencies against the US$ and stock market performance

Respondents who said their clients’ total wealth had…

% change 2020

China CSI 300

27%

A$

Since March low

48%

US S&P 500

16%

68%

Japan Nikkei 225

16%

63%

Europe STOXX 50-5%UK FTSE 100 -14%

Source: Macrobond

43%
29%

9.9%
£

€
9.2%
Rps

3.1%

Rmb
6.6%
Rb

-2.3% -16.2%¥
5.3%

Increased significantly (> 10%)

14%

Increased marginally (< 10%)

35%
27%

Remained the same16%

Decreased marginally (< 10%)Decreased significantly (> 10%)Source: The Wealth Report Attitudes Survey

8%W E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

P12WEALTHSUMMIT

Using the Knight Frank Wealth Sizing Model, we reveal how deep
your pockets need to be to join the wealthiest 1% in
selected countries and territories

WORDS – FLORA HARLEY

DATA MODELLING – JAMES CULLEY

US$7.9m

US$2.9m

needed to join Monaco’s 1%

T

he top 1% – frequently cited,sometimes maligned, butnever really defined. The levelof net wealth that marks thethreshold for entering thisrarefied community varies widely among
different countries and territories.
Interestingly, though, it falls far shortof our definition of a UHNWI – somebody
whose net wealth exceeds US$30 million –even in Monaco, which has the world’s densest
population of super rich. The entry point forthe principality’s branch of the 1% club – theworld’s most exclusive – is US$7.9 million.
In second place comes the home of theprivate bank, Switzerland, where US$5.1
million gains you access, followed by the US,
which has the highest number of UHNWI
residents. Here, US$4.4 million is your ticket
to 1% status.
Singapore, in fourth place, is Asia’s
highest entry, marginally ahead of Hong
Kong, with the level of wealth required
being US$2.9 million and US$2.8 million
respectively. New Zealand sets a US$2.8
million barrier – US$80,000 more than you
would need in neighbouring Australia.
Argentina is the highest entry for Latin
America at US$360,000, ahead of Africa’s
highest – South Africa at US$180,000.
Developing economies Indonesia and
Kenya have thresholds that are below 1%of the level of Monaco at US$60,000 and
US$20,000 respectively. India has the same
1% level – US$60,000 – but with a UHNWI
population 10 times that of Indonesia and14 times that of the Philippines. Wealth growthforecasts predict India’s threshold to almost
double over the next five years.
The Chinese Mainland is also forecast to
see its 1% threshold rise by almost 70% fromSingapore’s 1% threshold – Asia’s highest

Flying highThe level of net wealth needed to join the top 1% in selected countries and territories (US$)
US$4m
7.9m

MonacoSwitzerland

5.1m

US

4.4m

Singapore

2.9m

New Zealand

2.8m

Hong Kong SAR

2.8m

Australia

2.8m

Ireland

2.6m

France2.1m

Germany

2m

UK

1.8m

Taiwan

1.5m

Japan

1.5m

Spain

1.4m

Italy

1.4m

UAE

1.3m

South Korea

1.2m

Chinese Mainland
Malaysia

850,000
540,000

Russia400,000

Argentina

360,000

Romania

300,000

Brazil280,000

South Africa

180,000

Vietnam

160,000

Nigeria

70,000India

60,000Philippines

60,000Indonesia

60,000Kenya

20,000AfricaAsia

Australasia
EuropeLatin America
Middle East

North America
Russia & CIS

Source: Knight Frank Wealth Sizing Model

US$850,000 in 2020. This reflects rising wealthbut, as elsewhere, growth is not uniform.
Wealth inequality has become starker withincountries and globally, particularly as aresult of the Covid-19 pandemic, and this is
likely to become a point of growing contention– something we discuss in more detail on
the following page.

Wondering how much it
takes to join the 0.1% club?
Head online to find out

P13

W O R D S A N D A N A LY S I S – F L O R A H A R L E Y

shift

D

T H E W E A LT H R E P O R T 2 0 2 1

Paradigm

ictionaries usually nominate
a word of the year. But 2020’s
upheaval resulted in so many
linguistic gymnastics that Oxford
Languages, publisher of the Oxford English
Dictionary, felt compelled to issue an entire
report on the phenomenal rate of languagechange and development during the year.
It’s a reflection of the rapid change we haveall been living through. To gauge its ongoing
influence we spoke to geopolitical analysts,
wealth advisors and managers, combined withthe results of The Wealth Report Attitudes

We look to the future and assess the biggest potential influences on
wealth creation and preservation that readers of The Wealth Report
should be considering during 2021 and beyond

Survey, to identify some of the biggest risks
and opportunities in wealth creation, growthand preservation. Here are the top five.

Time to reassess and researchMedium risk
High risk

High opportunity

High opportunity
When we asked Attitudes Survey
respondents
what issues were most worrying their clients,
Covid-19
unsurprisinglyMedium
came opportunity
out on top at
High
risk
80%. But nearly 90% see new investment
opportunities in a post-pandemic world.

With more time to reassess every elementof our lives, including our businesses andinvestments, the number of new companies
being set up is rising (see chart on page 15).
“We are entering a new economic cycle andthe prospects for wealth creation and growth
are huge,” says David Bailin, Chief Investment
Officer at Citi Private Bank.
The availability and greater adoption oftechnology will aid this, and just under halfof our survey respondents find technology as
a disruptor exciting. Bailin adds: “The ability
to gather and analyse financial data is onlyW E A LT H

CITIESHOMEINVESTING

Wealth worries

DATA B A N K

P14

Wealth opportunities

The biggest wealth creation andpreservation worries* for UHNWIs in 2021

The opportunities most likely
to excite UHNWIs in 2021

87%

Ongoing disruption by Covid-19 80%
Domestic government policy
Tax issues
Geopolitics (trade wars, etc)
Wealth transfer to the next generation

PA S S I O N S

New investment opportunities
in a post-pandemic world

49%
42%
35%
28%

6%

47%

BrexitTechnologicaldisruption as
an opportunity

Brexit 10%
Impact of rising wealth inequality 8%
Civil unrest 6%
Armed conflict 3%

31%

18%

Improvinggeopolitics

Tax
issues25%

22%

Opportunities
arising from the
ESG agenda

23%

Domestic government policy

Wealth transfer tothe next generation

Source: The Wealth Report Attitudes Survey*Respondents were asked to nominate their three main concerns and opportunities

going to improve. The world of investing will
be revolutionised, and the number of investors
will go through the roof. Small investors are
already becoming more market aware, which
can create much more wealth globally.”
Day traders, for example, gave shortselling hedge funds a billion-dollar bloody
nose in January with a Reddit co-ordinatedMedium risk
High opportunity
drive to push up the stock price of GameStopand other companies being shorted.
High risk

High opportunity

High risk

Medium opportunity

New social order

The pandemic has exacerbated inequalities
globally. We are witnessing a “K-shaped
recovery”, with industries and populations
recuperating at different paces.
A team at Harvard University found thatbetween February and October 2020 in the US,
workers in the bottom quartile (annual incomeof US$27,000 or less) saw employment dropby almost 20%, while among those making
more than US$60,000 per year it rose by 1%.
While only 8% of our respondents cite
inequality as a direct issue affecting theirclients’ wealth, it could have an impact on
domestic government policy and tax issues,
which 49% and 42% respectively of them docite as a concern.
“We could see a shift to more wealth taxes
as governments scramble to cover the hugecosts of the pandemic, and targeting thewealthy tends to be uncontroversial withvoters,” says Filippo Noseda, a private client
lawyer at Mishcon de Reya.
In December, Argentina’s parliament
approved a proposal to impose a one-time
2% tax on individuals with more than
US$2.5 million in assets. Canadian President
Justin Trudeau has announced plans tospend billions on childcare, housing andhealthcare, partly financed by taxing“extreme wealth inequality”. A one-off
wealth tax to pay for the costs of Covid-19
has been proposed in the UK.
Where opportunity lies is in recognisingand bridging the gap. Vincent Magnenatof Lombard Odier Group told us that in a
recent study of UHNWIs across Asia, “over80% recognise that access to technology
has and will continue to increase inequality.
However, they also believe that technology
can narrow it by, for example, providing
widespread access to education. But weneed to invest in the right infrastructure
and roll it out for everybody. Coupled withprivate capital, technology can have atransformative impact, and we believe thatUHNWIs have a pivotal role to play.”

Intergenerational relations
Medium risk

High opportunity

High risk

High opportunity
Unsurprisingly, almost 60%
of our survey
respondents said they or their clients had

High risk

Medium opportunity

reassessed their attitudes to succession
planning in light of Covid-19. Intergenerational
wealth transfer can be welcomed withtrepidation or open arms. According to oursurvey the former is slightly more prevalent,with 28% of respondents placing it in their top
three worries, compared with the 23% who see
it as an exciting opportunity.
“This is the first time that we see a
convergence of the following trends –multigenerational family members working
together, and UHNWIs and their families
increasingly reflecting more global views,”
notes Pierre-Yves Lombard of Lombard
Odier Group. “We have also observed
younger generations studying in the UK or
US before coming back to Asia to work in thefamily business. They often bring back fresh
perspectives and mindsets, which result invery different discussions. They encourage
their families to rethink everything.”
Arne Elias Corneliussen, founderand director of geopolitical advisory firm
NRCI, agrees that there is “tension between
respecting the wealth and business built by
the older generations and the need to adapt
and evolve”.
The focus on the future to safeguard andgrow wealth is imperative and one of themain tensions comes from environmental
sustainability where, as Lombard notes,“new generations are challenging the older
generations to do more.” For more on what
this means for family offices, flip to page 54.

P15

T H E W E A LT H R E P O R T 2 0 2 1

Medium risk

High opportunity

High risk

High opportunity

Regreening the planet

High
risk
As documented

Medium opportunity
in previous
editions of
The Wealth Report, the environment andclimate change are increasingly driving
investment and lifestyle decisions andphilanthropic activity, another trend
accelerated by the pandemic. More than
40% of UHNWIs are more interested inenvironmental, social and governance (ESG)focused investments than 12 months ago
and 22% are excited by opportunities arisingfrom the ESG agenda, with those in the UK,
Australasia and North America the keenest.
In previous downturns the green agenda
took a back seat, but this time it’s taking
centre stage. The EU has been leadingwith green bonds and Joe Biden’s new
administration will see the US focus moreon sustainability. “The rate of development
associated with climate change spending,the future of power generation and storage,
and how we address global warming will be
as radical in our lives as the development of
the internet,” predicts David Bailin.
The opportunities for wealth creation are
wide-reaching, but so are the risks. More than
61% of respondents feel their clients do nothave all the information they need to assess
ESG-related investments and while steps arebeing taken by the Task Force on Climaterelated Financial Disclosures and others, there
is still some way to go. We outline one way toassess both opportunities and vulnerabilities
using geospatial analysis on page 60, but thisis merely the tip of a seismic iceberg.

Entrepreneurial spirit
The number of new companies registeredin the first three quarters of the year
2018
US

2019

2020

1,049,690

1,024,170

522,469

1,167,500

566,957

UK
498,862
205,770
210,979

France173,817
172,687
176,513Australia

186,060
Sources: UK Companies House, US Census Bureau, INSEE,
Australian Securities & Investments Commission

Notes: UK and Australia relates to new companies incorporated,
US relates to high propensity business applications and France
relates to enterprise births

In previous downturns
the green agenda tooka back seat, but this timeit’s taking centre stage

Geopolitical pendulum
Medium risk
High risk

High opportunity

High opportunity
The arc of global geopolitics
will always playa huge role in wealth creation. In last year’s
Attitudes
Survey politicaltensions
and tradeHigh
risk
Mediumopportunity
wars was the second most cited concern – thisyear, it has slipped to fourth place.
A Biden White House is expected tobring a calmer approach to international
relations. The end of 2020 saw a Brexit deal
agreed between the UK and EU, and 15 AsiaPacific nations sign up to the biggest regional
trade deal ever, the Regional Comprehensive
Economic Partnership. All this, combinedwith a new trade deal between the EU andChina at the start of 2020, brings opportunities
for growth – but also areas of contention.
Despite steps towards co-operation,
tensions remain. The dispute between
Australia and China simmers, and a Biden
administration is unlikely to deviate far
from the current hard line on China. We havealso seen greater attempted governmental
control over investment, with Donald Trumpbanning US investment in Chinese firms
his administration believed were owned orcontrolled by the Chinese military.
With long-standing German Chancellor
Angela Merkel stepping down this year we
could see a shift in European politics. Within
nations, political polarisation is growing.
The recovery – if it continues in its current“K-shaped” form – will further exacerbate this,as too may the internet, as highlighted by the
Netflix documentary The Social Dilemma.
In addition, with the democratic process
being called into question, by the then sitting
US president no less, we could see populism
come to the fore once more.
Much has been written about issues suchas technology, privacy rights, sustainability
and the green agenda, including in previous
issues of The Wealth Report. What is new,and notable, is the growing convergence
between them, and the increasing interplay
with government agendas. Recognisingsensitivities and identifying where pressures
may build is imperative to minimise risk
and maximise opportunity.

Five more
to watch...
Privacy coming to a head
Governments’ desire for transparency will
clash with individuals’ right to privacy, at leastin the EU where privacy and data protection
are fundamental rights. Filippo Noseda
reckons that this will come to a head in 2021,
with geopolitics a factor as well as individual
rights. Global affairs analyst GZERO Media
notes in its top risks that “even as the datadriven 5G and AI revolutions gain steam,other governments concerned about who
is accessing their citizens’ data – and how –will erode the foundation of the open global
internet.” If tensions rise, could this erosion
play into a willingness to share bank accountand tax data between jurisdictions?

Equity bubbles
After a big dip in the early days of thepandemic, equity markets have risen to newhighs – and the risk of what some see as an
overinflated bubble bursting remains.

Africa roars
Demographic factors and infrastructuredevelopment within the continent will create
ever greater opportunity.

Asia continues its march
A new trade deal (see left), a widening
investment landscape and burgeoning middle
class make it impossible to ignore the region’s
potential for wealth creation and growth.

Experiential everything
Simply seeing new things will not be enough.
UHNWIs are increasingly looking for moreexperiences and this will translate not only
into how they live but also where and how
they invest. See page 58 for how this links totourism and travel.

For more insights into how UHNWIsplan to invest in 2021, view the full
results of the Attitudes Survey online

W E A LT H

CITIESHOME

EMERGING
AFFLUENCEINVESTING

PA S S I O N SDATA B A N K

P16W O R D S – F LO R A H A R L E Y
DATA M O D E L L I N G – JA M E S C U L L E Y

Using the Knight Frank Wealth Sizing Model, we look at what the futureholds for the world’s wealth populationsO

ur model predicts that the global
population of UHNWIs will grow by 27%
over the next five years, while the numberof HNWIs – or millionaires – is forecast
to rise by 41%.
This reverses the trend seen in 2020 when HNWI
numbers actually contracted against modest growth in
the worldwide population of those with US$30 million
or more in net assets (UHNWIs). This reinforces theresilience of wealth, matching our forecasts from the2020 edition of The Wealth Report.
Respondents to our Attitudes Survey also take an
optimistic view, with 93% expecting their clients’ wealthto stay the same or increase in 2021. Just over one-fifthof these expect a significant – above 10% – increase.
Those in North America, Australasia and Asia are themost optimistic, with 86%, 82% and 81% respectively
predicting either an increase or a significant increase.
Asia tops our five-year UHNWI growth forecastwith 39%, led by Indonesia on 67% and India on 63%.
This would see Asia’s proportion of global UHNWIsrise from 22% to 24%. Europe will retain its crown as
the second largest wealth hub with expected growth of
23%, bringing the total number of UHNWIs to 185,860.
The biggest rises are forecast in Poland with 61%, andSweden with 59%.
Africa is expected to see the second biggest regional
five-year UHNWI growth rate – 33% – led by Zambia
and South Africa. But the outlook for households earning
more than US$100,000 a year is even more positive
according to Oxford Economics, which is forecasting
139% growth over the same period.
We highlight the expansion of this cohort to underline
the potential of growing mass affluent populations
across Africa and Asia. Accelerated growth in lower
wealth tiers will serve to reverse some of the widening
inequalities of 2020, spurred on by entrepreneurial
spirit and technological opportunities.
Although Covid-19 was still far from under control
in many parts of the world as The Wealth Report went
to press, this year’s forecasts represent optimism forthe emergence of a new economic cycle and set new
expectations for the post-pandemic world.

HIGH ACHIEVERS Indonesia leads Asia and world growthP17

T H E W E A LT H R E P O R T 2 0 2 1

Rise of the mass affluent

Wealth hubs

Five-year growth forecasts (2020 to 2025) by wealth band

Households withincome of
US$100,000+

World

HNWIs

41%

45%

Africa139%

Australasia

27%

663,48339%

23%

185,86025%

18,06029%

25%

37,241

33%

24%

236,297

34%

27%

13,097

34%

108%

40%

14%

144%
Source: Knight Frank Wealth Sizing Model, Oxford Economics

Zambia40%

South Africa

32%

67% Indonesia

161,878

6,689

49%

Five-year
growth

4,361

27%

82%

Russia & CIS

UHNWI
populationsin 2025

33%

40%

Latin America

UHNWIs46%

66%

EuropeNorth America

25%

116%

Asia

Middle East

Forecast regional UHNWI populations in 2025
and countries with highest five-year growth*

63%
52%

India
New ZealandAustralia

20%
61%

Poland59%

Sweden26%

Mexico23%

Brazil43%

Turkey

22%

UAE

24%

US

23%

Canada33%
29%

Kazakhstan
RussiaSource: Knight Frank Wealth Sizing Model* Of those modelled

Great expectations
Respondents who said their clients’ total wealth in 2021 will…
Remain the same

Decrease marginally (<10%)

22%

22%

49%

Source: The Wealth Report Attitudes Survey

663,483 27%
Forecast global UHNWI population in 2025

Decrease significantly (>10%)
1%

Increase marginally (<10%)7%

Increase significantly (>10%)

Forecast growth in UHNWIs
between 2020 and 2025

Head online to find out how we create
the Knight Frank Wealth Sizing ModelW E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

P18The year passports
lost their power
WORDS AND DATA ANALYSIS – FLORA HARLEY

Nothing quite reveals the true power of a passport like the inability to travel. With the	Covid-19 pandemic in full swing, many found their plans during 2020 restricted inways never experienced before. The Wealth Report looks at what comes next

t the start of 2020, a US
passport-holder could claim
visa-free access, or visa-onarrival, to 171 countries. Twelve
months later that figure was103, due to Covid-19 lockdowns and related
travel restrictions. A UAE passport began theyear as the world’s most powerful. It has now
slipped to fourteenth place.
If citizens of these two nations held
residency or citizenship of another country,
they would have considerably more freedom.
Having never previously considered doing20
MAY 20DEC 20so, manyJAN
UHNWIs– especially,
according
1
13
UAEa Bloomberg
toreport, US
citizens – 14are
2 new options
2 for alternative1
seekingGermany out
3and citizenship.
19
6
residencies
Japan
3
18
19
Surveyreveals that,
US Our Attitudes
4
7
globally,
nearlya quarter3 of UHNWIs are
Maltaplanning
to5 apply for a second
passport4 or1UK
citizenship.
of Fragomen, 14an
1 Katie Good 13
UAE
immigration
lawyer, confirms:“We have2
21
Germanyseen
a significant
increase 19in enquiries in the
3
6
Japan
latterstage3 of 2020 and reachedpre-Covid
18
19
US
Malta

4

UK

5

Changing lanes

3

7

1

4

The ranking of selected passports at
different timesHighthroughout
ranking 2020

Low ranking

JAN 20MAY 20Germany

2

2

1

Japan

3

19

6

US

3

18

19

Malta

4

3

7

UK

5

1

4

New Zealand

5

18

3

Singapore

5

20

13

UAE

Australia

Hong Kong SAR

1

13

DEC 20
14

6

19

7

13

25

25

Barbados

17

26

23

Chinese Mainland

63

39

52

Source: Global Passport Power from Passport Index
Note: The ranking is based on the number of locations that offervisa-free, visa-on-arrival
1 2 3 4 or
5 visa6 7 entry
8 9 to10each11 12 passport
13 14 15 16 17 18 19 20

levels already.” In November, international
finance advisory firm deVere Group reported
that enquiries for second passports,
citizenships and overseas residencies wereup by more than 50% year-on-year.
The choice of where to go, however, may
be narrowing. An investigation by news
outlet Al Jazeera highlighted corruption
by high-level government officials in the
Cypriot Investment Programme, which has
since been suspended and opened up to
further EU Commission scrutiny.
Malta, another popular European
programme, hit its cap last summer andstopped accepting applications although
it has since been relaunched with slightly
more stringent requirements. A trend that
we may see more of is a greater emphasison employment or increased residency
requirements as these programmes evolve.
For economies with record debt levels
from fighting the pandemic the incentive tohave such programmes is clear. Indeed, asKate Everett-Allen discusses on page 42,
many nations are actively wooing wealthy
digital nomads. Across five Caribbean
countries – Antigua and Barbuda, Dominica,
Grenada, Saint Lucia, and St Kitts and Nevis– the benefits are said to be worth US$25
billion annually.
With the Covid-induced advent of more
flexible and mobile working patterns, weare likely to see demand increase further. And
in a post-pandemic world where mobility, orlack thereof, has been put in the spotlight weare unlikely to see a reluctance to partake.

24%

of UHNWIs plan to apply for a second
passport or citizenship in 2021

What drives investment
migration?
“Mobility, both in the present and as a
future hedge, is a strong driver of demandfor citizenship-by-investment programmes,
followed closely by business advantages,”says Professor Kristin Surak of the London
School of Economics, whose research
has focused on this exact question. “Often
it is privileges in third countries – not theplace granting the citizenship – that aresought. In light of the Covid-19 pandemic,
people are rethinking where they want tobe for the medium term and where has
good healthcare even more.”

Focus on down under
The Australian Significant Investor Visa hasdelivered almost A$12 billion of inward
i n v e s t m e n t w i t h 2 ,3 4 9 s u c c e s s f u lapplications since 2012. Andrew Martin ofasset manager Moelis Australia predicts
further growth. “Australia is an increasingly
attractive destination for investment
migrants, in part due to the handling of
Covid-19 from an economic and healthperspective. Chinese Mainland nationals
have long been the largest source of
applicants, although declining from around
90% between 2012 and 2015 to 84%
most recently. However, we are seeing
growing interest from across the globe,
including from Hong Kongers who haveseen their share of applications rise from
3% to 5% and from South Africans,
Americans and parts of western Europe
from which previously there had not beenmuch demand.”P 1 9R T T W O
PA

C
I
T
I
E
S

At a glance
20

Photo finish
London and New York tie for
top place in our global
City Wealth Index
22

Riding highOur new Trifecta index
tracks the top cities for healthand innovation

24

Down but not out
Don’t write off cities just yet,says urban guru
Professor Saskia Sassen
26

Leading the way
Barcelona is leading the way
on sustainability and city
living by the sea

Find out why cities are set to prosper
despite Covid-19, and why they willcontinue to attract UHNWIs,
businesses and wealth creators

W E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

P20A TALE OFTWO CITIES

Reflecting the ongoing unpredictability and turbulence engulfing theworld we have, for the first time, a tie at the top of our City Wealth Index.
	From the number of UHNWIs to high-end retail, here we explore
WORDS AND DATA ANALYSIS – FLORA HARLEY
where the wealthy live, invest and spendIn 2020, we may have seen a temporary
exodus from cities during the initialround of Covid-19 lockdowns, but it
was, as we explore on page 32, justthat – temporary.
Across the 100 cities we analyse for
our City Wealth Index there are numerous
reasons, in terms of their wealth, investment
and lifestyle offerings, why UHNWIs are stillchoosing to spend time in urban areas.
For the first time we cannot separate
London and New York, which sit together
at the top of the index. Asian cities are led
by Tokyo in fourth and Hong Kong in fifth
place. European cities are the overall leaders
this year, claiming eight of the top 20 spots,
largely driven by high rankings for investment
and lifestyle. North American cities occupy
seven of the slots and Asian cities five.
In the wealth category, which measures
the number of UHNWI and HNWI citydwellers, the US clearly dominates. In termsof UHNWIs New York leads, with 7,743
individuals with a net worth in excess of
US$30 million in residence. Look at the
number of HNWIs, however, and it is
London that leads with 874,354 millionaires– creating a tie.
New York led the investment category
due to the high number of top global firms
headquartered there as well as strong
domestic investment. It was London, though,that saw the highest levels of cross-border
capital from the widest range of different
countries invested in real estate over the
12 months to September 2020. Paris,
Amsterdam, Munich and Madrid all ranked
within the top ten. Amsterdam ranked joint
second highest for diversity of investors andseventh for cross-border investment.
For lifestyle, while London still led, Pariswas hot on its heels. This year, in addition

to our usual measures of top universities,
Michelin-starred restaurants, five-star hotels
and airline connectivity, we have added thenumber of high-end retail outlets for selected
brands using data provided by marketing
agency ClaraVista. For this new measure,
Paris was in second place after Hong Kong.
Sydney, Australasia’s strongest performer,
ranked third highest for top universities, butscored less well for connectivity with fewer
flight destinations.

Head online for the full results
and methodology behind
the City Wealth Index

P21

T H E W E A LT H R E P O R T 2 0 2 1

Prime stock

US$4bnCross-border private investment in London in
the 12 months to September 2020

7,743
UHNWIs who call New York home

The number of homes considered“prime” in each city*

68,189LondonDubai
SydneyHong Kong SAR
Singapore

42,35627,436
21,285
10,416

Source: Knight Frank Research* Prime thresholds: London £2m+; Dubai Dh3.6m+;
Hong Kong SAR US$5m+; Sydney A$3m+; Singapore landedhomeshomes S$5m+ and non-landed units of 2,500 sq ft or more

Prime numbers

The definition of prime property varies by
location, but it typically encompasses the
top 5% of the market. The chart on the left
shows prime stock levels in five global
cities where robust data is available.
London has the most prime housing stock,
while Dubai – home to 536 UHNWIs – has
the second highest availability of the fivecities shown. Singapore, which is facing
supply constraints, as Kate Everett-Allen
discusses on page 40, has the lowest levelof options for HNWI home purchasers.

Urban leaders
The Knight Frank City Wealth Index 2021

WealthInvestment

1= London
1= New York
3

Paris

4

Tokyo

5

Hong Kong SAR

6= Chicago
6= Los Angeles
8Singapore

9

Munich10 Amsterdam
11 Beijing
12 Berlin
13 Houston
14= Shanghai
14= Dallas
16 Madrid
17 Toronto
18 Zurich
19 Frankfurt
20 Washington DC

Sources: Knight Frank Research, RCA, Fortune Global 500, Michelin, Five Star Alliance, Times Higher Education, FlightsFrom.com, ClaraVista

LifestyleW E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

HEALTH, WEALTHAND INNOVATION		
For aspirational cities, a focus on innovation
and wellbeing could be the key to attracting or retaining
free-spending inhabitants. In a bid to identify the future
front-runners in this race we have merged these
two factors with our current measures of HNWI wealthto create our new City Trifecta WORDS AND DATA ANALYSIS – FLORA HARLEYI

nnovation drives economic growth
and wealth. This is nothing new.
But the importance being placedon wellbeing is something that is
rising and has been catapulted to
the fore by the Covid-19 pandemic.
Taking both these factors into account inaddition to ranking where wealth currently
resides, as measured by our City WealthIndex, will help determine the urban
hotspots of the future: the City Trifecta.
For example, when we factor in its city
innovation and wellbeing rankings, Munich
takes top spot in the Trifecta, comparedwith ninth place in the City Wealth Index.
Tokyo climbs to second from fourth. The
largest jump is from Edinburgh, up 28 placesfrom its position in the index. Melbourne,
Stockholm and Boston all see their rankings
rise by more than 20 places, scoring highly
for innovation and, in Boston’s case, also
making it into the top ten for health.
In our sister report Active Capital, which
offers insights into the dynamics of global
real estate capital markets, we identified
global innovation-led cities that will attract
and retain talent and wealth, creating future
opportunities. The innovation score comprises
four elements: quality of innovation factors;
innovation infrastructure, such as the numberof research organisations in a city; funding;and the drive to innovate.
Cities were split into tiers based on theirscores and the figure opposite reveals thosethat occupy the top four. London is the sole

occupant of the top tier, followed by Tokyo
and New York in the second echelon. Seoul
and Zurich are in the third and fourth tiers
respectively, which boosts their City WealthIndex ranking by ten places overall.

New urban challengers
In the 2020 edition of The Wealth Report we
introduced our City Wellbeing Index. This
year, we have refined the index, splitting it
into four categories that influence decisions on
where to live and invest: healthcare; safety;
air quality; and sustainability.
Helsinki tops the list, up from third
last year, closely followed by Madrid andVancouver. Europe still dominates, with four
spots in the top ten compared with three eachfor Australasia and North America. Asia’s
highest entry, Taipei, is in 13th place, although
for the healthcare measure it comes out top.
For the sustainability element we again
drew on research from Active Capital thatlooked at the number of green-rated buildings.
London, New York and Los Angeles comeout top for this element, yet lose ground onothers such as air quality.
With national governments increasingly
bogged down in efforts to placate polarised
and hostile electorates, forward-thinking city
mayors and leaders are taking the opportunity
to facilitate and deliver meaningful change.
This has led to the emergence of new urban
challengers jostling with more establishedcities in our City Trifecta.

Top of the class
Our City Trifecta top 20

1

Munich

2

Tokyo

3=

Paris

3=

New York

5

Boston6

Toronto7

London8

Zurich9Hong Kong SAR

10Berlin11

Singapore

12=

Sydney12=

Madrid14

San Francisco

15=

Amsterdam

15=

Stockholm

15=

Washington DC

18

Seattle

19=

Seoul

19=

Los Angeles

Sources: Knight Frank City Wealth Index,

Knight Frank Active Capital, Numbeo, IQAir

P22

P23

T H E W E A LT H R E P O R T 2 0 2 1

HEALTHYOUTLOOK
Toronto ranks
fourth in our City
Wellbeing Index

Most improved

Creative thinking

26

37

Sources: Knight Frank City Wealth Index, Knight Frank Active Capital, Numbeo, IQAir

8

10

19

18

26

2

London

New York

Tokyo

BostonParis

San Francisco

Seoul

Beijing

BerlinHong Kong SAR

Los Angeles

Melbourne

Moscow

MunichStockholm

Toronto

Zurich36

43

3

Edinburgh

59

46

50

31

1

27

30

City
WealthIndexrank

ViennaVancouverSeoul

Zurich

Cities which are in the top four tiers of
our innovation-led cities rankings

10

21

19

16

34

11

12

16

5

Taipei

SydneyBoston
15

22

25

21

Stockholm

31

28

City
Trifecta
rank

Melbourne

Edinburgh

A selection of cities whose rank rose the most compared with our City Wealth Index

4

In good health
The Knight Frank City Wellbeing Index

Helsinki

MadridVancouverTorontoBostonBrisbane

MunichEdinburgh

SydneyPerthSource: Knight Frank Active Capital

1

2

3

4

5

6

7

8

9

10

Sources: Knight Frank Research, Numbeo, IQAir

Find out more about green
and innovation-led cities atknightfrank.com/active-capitalW E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

P24

Cities to lead				 the way
W O R D S A N D I N T E RV I E W – F LO R A H A R L E Y

In the eyes of some a question mark hangs over the longevity	of cities in the wake of Covid-19. The Wealth Reportmakes the case for their defenceE

mpty streets, shuttered doors
andboarded-up
windows.
At the height of the Covid-19
pandemic in April 2020, manyof the world’s most populous
cities were reminiscent of ghost towns. With
workers confined to their homes, and those
who could decamping to greener pastures,some predicted that this could spell theend of the city.
Those pessimistic voices included author,
comedy club owner and former hedge-fundmanager James Altucher, who penned theessay “NYC is dead forever – here’s why”.
But, despite the undoubted impact of thepandemic on many of those living in theworld’s urban hubs, I don’t agree that cities
are on their last legs. In search of evidence,
I contacted Saskia Sassen, Robert S. Lynd
Professor of Sociology at Columbia
University, and author of The Global City.
“Many cities have long histories,
much longer histories than national
states, something we often forget,” Sassen
points out. “These long histories show us,
with great clarity, that cities go throughtransformations – there are declines andthen there are recoveries, there are epochs
when cities lose ground and epochs when
they gain ground.”By way of example, she points out that
US cities in the 1960s and 1970s were muchpoorer than they are today. “The queen of
all cities in the US, New York, was officiallybankrupt. Much was said about this being
the end of cities… but that was wrong, andwe saw a subsequent boom and the rise of
global cities.”
A boom indeed. By 2020, well over half –the UN estimated 56% in 2019 – of the world’s
population lived in urban areas. More than
80% of global GDP is generated in cities andby 2030 there will be ten new “megacities”,
defined as having more than 10 million

PEAK
PERFORMER
Tallin, Estonia,
is a leading"green" city

inhabitants, joining the 35 or so worldwide
that have already achieved this status.
Sassen tells me that “more and moreyoung high-level financiers and lawyers
need cities”. Why? “Because, as I discussin The Global City, the rise of globalisation
demanded a whole new set of knowledge
skills as to how to do business in many
countries across the world,” she explains.
Then came a temporary pause: theCovid-19 pandemic. With swathes of theworkforce, enabled by technology, seemingly
operating perfectly well remotely, and in
more spacious locations, what will revive
the city and how will it adapt?

“This is an important issue,” Sassen says.
“At the heart of the transformation lie two
major factors, in my reading.” The first, shepoints out, is a challenge that could cause
disparity geographically.
“Cities vary enormously in terms of theresources they can command. For example,
European and Chinese cities receive far
more support from their governments
than do US cities. The US has a logic I findastoundingly, how shall I put it, ineffective.
“It has privileged the richer urbanneighbourhoods and neglected many ofthe lower income areas. Let us recall theinfamous case of the seriously contaminatedP25

T H E W E A LT H R E P O R T 2 0 2 1>80%
of global GDP is generated in cities

water supply. A much-circulated photo of
two brothers, one living in New York Cityand one in New Jersey, showed one much
shorter than the other. Why? Because thewater in New Jersey had become seriously
contaminated with chemicals.”
The second factor is one at the forefrontof many minds: climate change. “This isclearly a challenge for cities,” says Sassen.
“Just think of all that concrete.” It isestimated that large cities’ traffic, transport
infrastructure and buildings are responsible
for more than 70% of global carbon emissions.
However, she continues: “A growing
number of cities are already working
hard at implementing innovations (see“The rhythm of the city”, right), both small
and large. This represents a challenge,
but als o a significant opp or tunity,
particularly to replace old infrastructures
which are typically fairly destructiveof climate and air, and often demand
more and more costs as they decay andbreak down.”
Overall, 2020 could mark a turning
point for cities – and a major opportunity.
“The biggest opportunities for cities have todo, ultimately, with human talent: a broad
range of types, knowledge and educationin the urban workforce will enable
innovative projects,” Sassen says.
After talking to Professor Sassen I’m
more convinced than ever that now is a big
moment for cities and for sustainability.
Cities are hubs of innovation and can leadthe way in a more sustainable future.
As UN Secretary-General António Guterressays, cities are “where the climate battle will
largely be won or lost”.

Cities go throughtransformations – there are
declines and then there arerecoveries, there are epochs
when cities lose ground andepochs when they gain ground

The rhythm of the city

The 15-minute city is a concept currently
captivating metropolitan authorities andurban planners alike, as they seek to reviveurban life safely and sustainably in the wakeof Covid-19. While not a new notion, it isanother example of a trend that has been
accelerated by the pandemic and the ongoing
focus on wellbeing that we discussed in the2020 edition of The Wealth Report.
“Such a straightforward and easily
implemented, brilliant idea that it has
exploded on the global scene,” is thereaction of Saskia Sassen, Robert S. Lynd
Professor of Sociology at Columbia
University (see main article) when I ask her
what she thinks of the idea.
The theory, by Carlos Moreno, a professor
at Sorbonne University in Paris, is based onfour pillars: proximity, diversity, density andubiquity. The idea is that city residents shouldbe able to find everything they require (work,retail and leisure) within a 15-minute walk or
cycle ride of their home. The rhythm of thecity should follow humans, not cars, andevery area should serve multiple purposes.

There would be environmental as well associal benefits, with less car use leading to
reduced emissions, improved air quality
and, ultimately, a healthier population.
From Paris to Houston, Chengdu to
Melbourne, cities in every corner of the
globe are starting to implement some ofthe principles. Notable among them is
Barcelona, which led the way with theintroduction of its “superblocks”, islands ofcar-free space made by re-routing traffic,
some five years ago. Find out more about
this over the following pages.

For more on the 15-minute city,turn to page 38 where we talkto developer Lendlease, andhead to our website for more
examples of cities embracing
the concept

It’s not that easy going green

With 452 cities, 22 regions, 1,101 businesses,
45 of the world’s biggest investors, and 549
universities all having joined the UN’s Raceto Zero challenge, it is clear that cities havethe opportunity to lead the way. Some havestarted to implement climate action plans todemonstrate how they will achieve net zeroby 2050 at the latest. We explore Barcelona
in detail over the next few pages, but below
we highlight three further examples.
Lancaster, California
Lancaster, a city of around 158,000 people
in northern Los Angeles County, has createda public-private partnership with SolarCity,a subsidiary of Tesla Inc., with the goal ofturning itself into a clean energy capital.
The scheme simplifies the process of goingsolar for residents and businesses byenabling them to install solar energy
systems at lower cost, combined with aspeedier approval process. In addition, any
single-family homes built after 2014 arerequired to have a minimum of 1kWh of solar
PV collectors.

Tallinn, Estonia
The Estonian capital is installing solar
panels on 100 municipal buildings and has
introduced smart technology to remotely
control city lights to save energy. It has also
worked with private apartment associations
to increase building energy efficiency to atleast a C rating. Tallinn’s two electric power
plants, running on 90% renewable energy
sources, generate enough electricity for theneeds of 130,000 apartments.
Shenzhen, Chinese Mainland
Dubbed China’s most sustainable city in2016 by McKinsey & Company, Shenzhen
has taken strong steps towards reducing
emissions. In 2017, it became the first major
city to deploy an all-electric public bus
fleet, and by 2019 99% of its taxis had
followed suit. The city is now offering its
13 million residents support worth up to
Rmb 20,000 to buy new fully electricvehicles, plus other incentives such as thefirst hour of parking free.

W E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N K

PARTNERSHIP CONTENT

P26

Superyachts
and superblocks
W O R D S A N D I N T E RV I E WS – PAT R I C K G O W E R

In this special feature we examine Barcelona’s emergence as a world leader	in urban sustainability and find out why the city’s Michelin-starred
restaurants, superyacht marina and luxury developments place
it among the world’s most desirable UHNWI hotspots

P27

G

eneration-defining moments
have a way of raising bigquestions about the role cities
play in our societies.
Safety fears following theattacks of 11 September 2001 in New York
prompted speculation as to whether highrise living might have had its day – a debate
conclusively settled by two decades of tower
construction spanning Texas to Tokyo.
Now, the spectres of the Covid-19
pandemic and climate change are posing
new challenges as to whether cities can berethought in order to reduce their impact on
the health of the public and the planet, andraising questions as to the role of city mayors
in responding to national crises that have adisproportionate impact on urban locations.
Barcelona finds itself uniquely placed
to provide answers. Nestled between the
Mediterranean, the Collserola mountains andthe Besòs and Llobregat rivers, the Catalonian
capital is home to some of the most densely
populated urban spaces in Europe. Its recent
history is marked by innovations in urban
planning as city officials seek to put space tobetter, more sustainable uses.

“THE REVOLUTION IS URBAN”

T H E W E A LT H R E P O R T 2 0 2 1or emergency services were banished tosurrounding larger roads, with a view to
cutting private car and moped use by 21%.
The concept of a superblock wasn’t a
new one – the first such zone was introducedin the Old Town’s El Born district in 1993.
At the time, the Old Town was ragged andrundown, and it quickly became gentrified.
Colau’s current plan, however, is on a muchgrander scale.
Over the next decade, superblocks “willtransform the entire central grid of the city
into a greener, more pedestrian-friendly andalmost car-free area,” she said in December,shortly after announcing that 21 streetsin the Eixample district would bepedestrianised at a cost of €38 million.
The ultimate goal is to implement morethan 500 superblocks, which could prevent
667 premature deaths every year, according
to a study carried out by the Barcelona
Institute for Global Health Traffic.
Superblocks aren’t a response to thepandemic, but they reflect decisions made by
a raft of municipal governments to repurpose
public spaces that either don’t facilitatesocial distancing or are simply being wasted.
Policy decisions that put the happiness
and wellbeing of the public first haveunsurprisingly proved popular, and what were
temporary reallocations of space are being
made formalised – see New York Mayor Billde Blasio’s decision to make sidewalk dining
a permanent fixture.
Lockdowns have offered Barcelona’s
residents a taste of what may be to come,at least when it comes to air quality. One
study by Spain’s Institute of Environmental
Assessment and Water Research revealed
emissions declined by half amid the moststrict restrictions on movement, largely
down to the reduced number of vehicles on
the city’s roads.
Underpinning all this is Barcelona’s
Climate Action Plan 2018–2030, a road map
aimed at cutting emissions by 45% by 2030,
on the journey to becoming carbon neutral
by 2050. This was bolstered in January 2020
when City Hall declared a climate emergency
and pledged to spend more than half a billion
euros by 2025 in order to ensure emissions
dropped by half by 2030.
“We are talking about a profoundtransition in every aspect of the city: its
productive system, its people, how we work,
how we move around... not acting is too
risky,” the government said in its declaration.
“The revolution is clearly an urban one.”

The 2015 election of Mayor Ada Colau,
a radical raised in the city’s Guinardó
neighbourhood, brought new impetus to thecity’s revolution in urban planning.
Since taking office, Colau has beensystematically retaking boulevards fromcars, radically increasing green space andincorporating social and environmental criteria
into public procurement.
“Change can begin in urban centres,”Colau told the press in December. “Cities canplay a pivotal role in transitioning energy
use away from fossil fuels. They can adopt
non-polluting modes of transport and build
green public spaces that absorb carbon
dioxide and release oxygen.”
The transition from fossil fuels is
perhaps the most important plank in Colau’s
approach. In 2016, the city initiated a newwave of “superblocks”, neighbourhoodsof approximately 40 acres carved out andmade car-free. All vehicles other than thosebelonging to residents, delivery vehicles

108,726
HNWIs live in Barcelona

CITY SCENE
Main image:The MB92
boatyard andMarina Port Velllie at the heartof Barcelona

W E A LT H

CITIESTRAVELLING THE WORLD,AT HOME
If you had walked to Barcelona’s port one
morning in 2020, you would have glimpsed
one of the most valuable private yachts
in existence.
At 180m, Azzam is among the longest
private motor yachts in the world. It boasts
accommodation for 36 guests and 80 crew,
and 4,000 professionals were involved in its
six-year build, according to Boat International.
It has a golf training room and the chandeliers
have been specially designed so they don’t
rattle at speed.
Last year, the vessel spent a period mooredat Barcelona’s MB92, the world’s leading
provider of refit and maintenance services for“superyachts”. The company works on morethan 100 such vessels – generally defined as
being at least 40m long – each year. At morethan four times that length, Azzam is unique– at least for now.
“When I began working in the industry
back in the early 1990s, 50m boats wereconsidered huge,” says Pepe García-Aubert,
chief executive of MB92. “The largest would
be up to 75m, whereas now that is becoming
standard. Increasingly, we are seeing boats ofmore than 100m.”
Barcelona stands uniquely placed to gainfrom the world’s swelling fleet of superyachts.
The city’s position as the gateway between the
Mediterranean and the Caribbean, summer
and winter hubs of the yachting season, makeit an optimal location to refit and repair. It
is also a natural home port for superyachts
exceeding 60m due to the facilities offeredby the luxury Marina Port Vell, one of theMediterranean’s leading marinas.

SLEEK
OPERATORSSuperyachts in
Marina Port Vell

Facing page:
Chef Alberto
Raurich in action

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Riding the airwaves
Barcelona superyacht and private jet trends
2015
135

2016
172

2017
198

2018
210

2019
263

4,690

4,804

5,080

4,993

Superyacht
visits4,350
Private jet arrivals

7%% of the superyacht fleet in the
Mediterranean visiting Barcelona(average 2015–2019)30–40mLength13%40–60m24%

3 0%

60–90m90m+% overseas private jet arrivals (2019)*

21%

14%

12%

10%

8%

FranceUK

Italy

Germany

Switzerland

Sources: WINGX, Superyacht Intelligence *Selected countries

Some 574 unique yachts entered theBarcelona region at least once between
January 2015 to June 2020, according toSuperyacht Intelligence. Arrivals of morethan 60m increased from 44 in 2015 to 78
in 2019, and some 20 arrivals since 2019 havebeen more than 90m long.
The trend fits with Spain’s growing
reliance on the maritime industry. The Portde Barcelona handled more than €67 billionof foreign trade in 2019, supporting the jobsof 37,000 people. All in, it accounts for aquarter of all Spain’s maritime foreign trade,a proportion that is likely to increase in tandemwith the world’s reliance on e-commerce.
“The data alone shows the importanceof the port,” says Mercè Conesa, Presidentof the Port de Barcelona. “But our mainP29

contribution to the economy of Barcelona,
Catalonia, Spain, Andorra and also southern
France is to provide infrastructure andservices that help importers and exporters
to be competitive in global markets – and I
think we’ve been successful in doing so.”
Barcelona’s reputation as a favourable
place to do business is a major contributor toits emergence as a hub for the wealthy. Some
108,726 HNWIs, defined as having assets of atleast US$1 million, live in the city. Of those, 729
are UHNWIs, worth at least US$30 million.
Meanwhile, some 5,000 private jetsfrom around 85 different countries land inBarcelona in a typical year, up from fewer than
4,500 five years ago, according to data fromaviation analyst WINGX.
Superyacht arrivals through the port
typically include royals, chief executives of
the world’s biggest companies and famous
entrepreneurs, according to Ignacio Erroz,
general manager of Marina Port Vell, whichneighbours MB92 and is fast becoming acentre for knowledge and innovation.
“Yachting is seen as a wholesome activity
for people who want a family-oriented lifestyle.
It offers the possibility of being in a private
and controlled environment and choosing
your destination without any restrictions,”
he says. “This is key: you get the finest andmost luxurious experience travelling aroundthe world, at home.”
Inevitably, all this is attracting investment,
and in 2019 Squircle Capital, a European
alternative investment firm, purchased acontrolling stake in MB92.
But while vessels themselves are set tocontinue to grow, the bigger trends in superyachting now lie in sustainability, according
to García-Aubert. “There is huge demand to
improve on the sustainability of the vessels,from the collection of waste to improving
propulsion systems and lighting,” he says.
“Every time I see a new build something is
improved, and the advances in hydrogen
propulsion are particularly exciting.”
With sustainability emerging as a key trend
in the superyacht industry, companies acrossthe world are striving to become leaders in thefield. “Marina Port Vell will be a key player
in implementing a sustainability scheme,”says Ignacio Erroz. “We are committed to being
the preferred option for a new generation of
shipowners and captains.”

SEVEN CENTURIES OF
CATALAN CUISINEThe essence of Catalan cooking can be foundin a 700-year old cookbook. Believed to havebeen published in 1324 and now located in
the museum at the University of Valencia,
El llibre del Sent Soví is the oldest surviving
culinary text in Catalan. There are many

T H E W E A LT H R E P O R T 2 0 2 1

things that make it remarkable, not least
its use of ingredients found in Arabic andJewish cuisine, and its recipes from ancient
Greece and Rome.
This piece of history, says Alberto
Raurich, Michelin-starred chef at Barcelona’s
Dos Pallilos, offers a glimpse of what makes
Catalan cuisine special. “Our food culture
has been and is very rich,” he says. “Rich indiversity of products, and rich in knowledge.”
There are, perhaps, other reasons too why
Raurich admires the anonymous cook behind
El llibre del Sent Soví. The intelligent blendingof styles and cultures that runs through thebook is how he has made his name.
Dos Palillos, Spanish for “two chopsticks”,
is among the most exciting restaurants in oneof the most exciting food cities in the world,with 24 Michelin-starred restaurants holding a
total of 34 stars between them. At Dos Palillos,
which was first awarded its star in 2012,
Raurich serves up Spanish-Japanese fusion
food, from Szechuan-style jellyfish to IberianCantonese pork jowl. It is, according to Ferran
Adrià, former head chef at El Bulli, “the best
Asian restaurant outside Asia.”
Of course, Japanese-Spanish food mightsound like an odd match, but distinct eating
cultures often overlap in ways that cansurprise. In both countries, “the concept ofeating at a bar is of the essence,” Raurich says.
“At Dos Palillos, we take this to its highest

expression – there is a bar around a kitchen
served by cooks, where people can eat, drink
and socialise.”His success in doing justice to the thisshared tradition is down in part to Tamae
Imachi, his Japanese wife. The pair met
while working at Adrià’s now legendary El
Bulli, the Barcelona institution voted a record
five times as the world’s best restaurant.
Raurich, who was head chef there for morethan a decade, and Imachi, the restaurant’s
former sommelier, are now co-owners of Dos
Palillos. It is Imachi’s “great knowledge” ofher country’s food that has made it possible tomeld the two cultures, according to Raurich.
“I think you cannot innovate or becreative from a condition of ignorance,” hesays. “If a non-Japanese person wants to cook
Japanese cuisine, he or she should know not
only the food preparation and techniques but
also the essential pillars of the cuisine, thatis, its liturgy, spaces, dishes, movements,
concepts and philosophy.”

729
UHNWIs live in Barcelona

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THE NEW BREED OF
MODERNIST MASTERPIECES
The Gothic masterpieces of the 13th to 15th
centuries and the modernist movement
pioneered by Antoni Gaudí epitomise
Barcelona’s long architectural history.
Nowadays, when you walk the city’s
tree-lined grids you pass a new breed ofdevelopments. However, you won’t findanything like the towering form of the
Sagrada Família. Instead, expect sleek
reinventions of modernist offices, like Francesc
Macià 10, or the flamboyant geometric curves
and primary colours of Antares, due forcompletion at the end of February.
“We scoured the world for the bestarchitects and designers, bringing themto Barcelona and really capitalising on thecultural diversity there is in the city andthis broader push to do new and exciting
things,” says John Nery, Head of Investments
at Squircle Capital, the investor behindFrancesc Macià 10. “That’s when Marcio Kogan
came in and turned what some may haveconsidered an ordinary-looking insurance
building into a truly unique super prime
residential asset that went on to achieve thehighest price per sq m in Spain.”
Kogan is the renowned Brazilianarchitect behind Studio MK27, set up in thelate 1970s and famed for its minimalist
luxury. Alongside his team Diana Radomysler
and Suzana Glogowski, Kogan transformed
the 1960s office building into eight vast
lateral serviced apartments with panoramic
views over the city.
The project – the city’s first super prime
development – is striking for its use of
American walnut, brass and marble and its
100m curved walls of floor-to-ceilingwindows. It is the first residential buildingin Spain to gain BREEAM certification, andwon the award for Creative Re-use at the
INSIDE World Festival of Interiors in 2018.
“We tried to be fair to all this modernist
beauty while bringing in sophisticated details
connected with our culture,” says Kogan.
“The quality of the handcraft we broughtfrom Brazil was very high, because we don’t
yet have the culture of industrialisation.”
Prime asset prices have remained morestable than those in mainstream markets
throughout the pandemic, underpinned by
the influx of UHNWIs, Barcelona’s growing
creative business environment, and its global
reputation for fine dining, says Squircle’s
Head of Development Gonzalo Álvarez.
That makes investing in super prime
developments such as Francesc Macià 10
an attractive alternative for companies andindividuals “with a limited appetite for risk
and who tend to lean towards value-add

MODERN
MASTERPIECEFrancesc
Macià 10

strategies,” he adds. “As demand for rentals of
this type of property is also on the rise, theseinvestments offer a highly attractive yield.”
Six kilometres east of Francesc Macià 10,
a short walk from Port Fòrum marina and
Mar Bella beach, is Antares, a super prime
development designed by French architect
Odile Decq. It is immediately recognisable byits bright red trim, curved lines and sweeping
balconies. Like Francesc Macià 10, Antares
boasts long, lateral spaces and blurs the lines
between what constitutes outside and inside.
“We wanted to create a Miami-stylebuilding that didn’t exist in Barcelona,”says Philippe Camus, Chief Executive ofShaftesbury Fund Management, the investor
behind the building. “We tried to create an
object that is singular.”
Together, Francesc Macià 10 and Antares
symbolise Barcelona’s arrival as a super prime
hub to rival the likes of Paris and Los Angeles.
The growth of superyachts and private jets
moving through the city, fuelled by its almost
unrivalled amenities and fine dining, has longsignalled Barcelona’s growing importance tothe transient wealthy. However, the arrivalof super prime real estate to rival the mostrenowned developments reveals something
different; that UHNWIs are putting downroots, investing locally and starting new
businesses in the city.
Indeed, it is this shift of focus from being
an attractive place to spend time to also being
considered a global business city that isbehind the city’s rise – and it’s a combinationthat is epitomised by these new super prime
developments, says Nery.
“If you closed your eyes and travelled toFrancesc Macià 10 then opened them in theapartment, you could be in New York, or thepenthouse at One Hyde Park. Then you thinkthat you’re buying at €20,000 per sq m, when
the comparable properties are multiplesof that,” he says. “That is symbolic of how
attractive the city is to buyers of residential
real estate as well as to investors looking
to do business here. You’ve got that huge
potential for growth that is just fundamental
within the market.”Go online for more in-depth
interviews with our contributors

P 3 1R T T H R E E
PA

H
O
M
E

T H E W E A LT HAt
R Ea
P Oglance
RT 202132

Surging ahead
Auckland tops our annual rankingof prime residential markets
38

Breathing space
How Covid-19 is influencing
design, from master planning
to interiors

40

Asia ascendant
Asian markets are set to see top
house price growth in 2021

42

Buyers’ guide
We choose the world’s hottest
next neighbourhoods

Uncover the latest insights and analysis
on prime global residential property
performance now and in the future

W E A LT H

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PA S S I O N SDATA B A N K

P32

PRIME
MOVERS

We reveal the 2020 results of the PIRI 100 – our unique
Prime International Residential Index – and investigate

the key trends shaping luxury global property markets

W O R D S A N D D ATA A N A LY S I S –K AT E E V E R E T T- A L L E NPrime residential prices performed
better than expected in 2020. Not
only did the PIRI 100, our annual
assessment of prime residential
prices across 100 locations around the world,
register growth, but at 1.9% it eclipsed its 2019
performance of 1.8%.
This positive headline conceals a morenuanced picture. In 2020, 29% of locations
saw prices decline year-on-year, up from 21%
in 2019. Conversely, five markets registereddouble-digit price rises in 2020, comparedwith just two over the previous year.

LO CAL INSIGHT
The drive for wellness and wellbeingheightened the appeal of waterfront
homes in Sydney, creating a significant
price premium in 2020
Michelle Ciesielski, Knight Frank Australia

Top slots
Auckland leads the index with average prices
ending the year 18% higher. New Zealand’shandling of the Covid-19 crisis, its rapid
economic recovery, ultra-low mortgage rates
and a limited supply of quality stock were

Key findings

Space hunters
How UHNWI interest in property types has changed as a result of Covid-19*

City or urban area

More

Less

20%

33%

Resort/coastal area

56%

Rural location

Ski destination

47%

11%

* % respondents who selected each option
Source: The Wealth Report Attitudes Survey

22%

behind the surge. Expect some intervention
in 2021 as the government looks to rein in
price inflation by tightening lending rules orraising taxes.
Asian cities occupy the next threerankings: Shenzhen (+13%), Seoul (+12%)
and Manila (+10%). The speed at which some
Asian cities, particularly Chinese Mainlandmarkets, rebounded was the surprise trendof 2020. By 26 March, property sales volumes
across 30 major Chinese cities had returnedto the average daily levels observed in 2019,according to data from Capital Economics.
Despite Asian markets occupying
a number of the higher PIRI rankings,
Australasia and North America were the
top-performing regions in 2020, averaging
annual growth of 4.9% and 6.3% respectively.
Both regions saw a surge in pent-up demand
as lockdowns eased and homeowners
re-evaluated their lifestyles.

No change

47%

11%

16%

34%

•

 uckland leads the index withA
prime price growth of 18%•

 ome Chinese Mainland cities saw
Ssales and prices recover rapidly• emand was domestic in natureD
due to travel restrictions•

 ountain, rural and waterfrontMliving were in demand• ercurial visa and tax regimesM
are driving decisions

38%

67%

P33

T H E W E A LT H R E P O R T 2 0 2 1

Stockholm 6.3%

Toronto 6.4%

7%
Boston 6.
n 6.7%
Housto%co 6.8rancis
San F
%
s 7.6
ngele
Los A
%
s 8
pton
Ham
8%
The
ich
Zur
8.1%
ver
c ou
.5%
Van
8
hai
%
ang
8.7
Sh
urg
sb
9%
ter
n
Pe
pe
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%
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9.1
o
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%
nD
9.9
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w
%
co
.2
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10
%
1.7
la

ou

%
.3
13

l1

17.
5%

Se

d

Latin America

Middle East

North America

Russia & CIS

m
6% Tokyo
5.9%Brusse
ls
5.8%
Edinb
u
rgh
5.3%
Jers
ey
5%
Athe
ns
5%
Brit
ish
5%
Virg
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in Is
4.5
land
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%
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4.1
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%
ève
Po
4%
rto
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3.8
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%
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3.
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7%
an
3.
kf u
Gu
7%
rt
3.
an
6%
gz
Sã
ho
o
u
Pa
Pe
ul
rt h
o

Europe6.1% Miami

Caribbean

i
an
M

an

en
zh
en
Sh

kl

Australasia

M

C

1

Prime
International
Residential
Index(PIRI 100)
Annual % change in luxury
residential prices in 2020*
10

enSardinia -3%

Ho

t

as

Co

G
5%
3.
on
2% isb
3.
L
rts
Ba
3%
St
lan
3%
Mi
a
ev
3% Genve
3% Algar
l
nbu
3%
Ista
ère
%
d'Is
3
Val
%
e
2.9
ban
Bris
el
2.5%
ib
r
Mé
2.4%
eijingB
2.1%
e
ustiqu2% M

a2% Lucc

1.6% Oxford

1.6% Rio de Janeiro

1.5% Florence

1.5% Gstaad

1.3% Provence

1.3% Verbier
1. 2%
St Tro
pez
1.1%
Sydn
ey
1%
Barc
elon
1%
a
Mon
aco
0.9
%
Ber
0.8
lin
%
Vie
0.8
nna
%
St0.8
Je
an
0.7 % S
-C
tM
%
ap
0.
o
-Fe
ritz
5% Ta
rra
i
pe
0.
t
2%
i
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0.
ur
2
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c
0% %
he
el
ve
bo
O
sl
l 18
Ro
ur
o
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50
m
e

-3% Mallorca-3% Bahamas

ng

Ba

Bu

Ca

d
ol

t
es
ar
ch dosBu ba
ar
0% B za
bi
i
ha
0% Ib
u D lhi
0% Ab
ore
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ap
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0% .1% Sing
Cit
-0
co
. 2% Mexi
-0
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blin
-0.
Du
7%
arta
-0.
Jak
%
bai
-1. 2
Mum
%
-1.5
nes
Can
-1.9%
aluru
Beng
-2%
huket
-2% P
ris
-2.3% Pa

os
Ai
re
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wn s 12
n
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gk
%
ng
9
o
SA k - .2%
7.3
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%
-6
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.9
ha
%
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-6
ba
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%
i wY
5.9
ork
%
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san
5.1
%
ne
Ma
-5%
rbe
lla
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-5%
don
- 4.3
%
Mad
rid
- 4%
Nairo
bi - 3
Kuala
.9%
Lump
ur 3.6%
Cyprus-3.5%
Marrakesh-3.3%
Riyadh -3.3%

0

ix

on

m

ha

pe

Au
c

Asia

6% Amsterda

AfricaSources: All data comes from Knight Frank's global network with the exception of Berlin and Frankfurt*Notes: Price changes are measured in local currency and relate to the period between 31 Dec 2019 and 31 Dec

Angeles, Miami, San Diego, San Francisco (S&P CoreLogic Case-Shiller); Jersey (States of Jersey); Toronto

Sept 2020. Boston, Los Angeles, Miami, San Diego and San Francisco to Oct 2020. New York to Nov 2020. Tokyo –(Ziegert Research & ImmobilienScout 24); Tokyo (Ken Corporation); New York (StreetEasy); Boston, Los(Toronto Real Estate Board); Vancouver (Vancouver Real Estate Board); Mexico (Sociedad Hipotecaria

Federal); São Paulo and Rio de Janeiro (Fundação Instituto de Pesquisas Econômicas); Oslo (Advokat Ek,
Oslo); Stockholm (Svensk Mäklarstatistik AB).

2020 unless otherwise stated. Berlin, Brussels, Frankfurt, Houston, Kuala Lumpur, Manila, Mexico City and Taipei torelates to all properties above ¥100m. Data for Singapore and St Petersburg is provisional.

W E A LT H

CITIES

Perth (+4%) was Australia’s front-runner,and Sydney (+1%) registered its highest
volume of prime sales ever in Q3 of 2020.
Grounded by travel bans, Australia’s luxury
buyers focused on building their property
portfolios at home, buoyed in part by thecountry’s bullish stock market.

Seeking space
In North America, from The Hamptons to
Florida and Aspen, suburban space, coastal
retreats and mountain air were in demand.
Ten of the 11 North American markets tracked
in the PIRI 100 sit within the top 20 rankings,
with San Diego out in front. Palm Beach
was a key super-prime hotspot in 2020,
recording 20 sales above US$20 million, up
from ten in 2019.
New York (-5%) struggled to gain
momentum in the first half of the year as the
pandemic took hold, but finished on a more
optimistic note with the number of signed
contracts in Manhattan up 14% in December
year-on-year, and listings down 31%. Low
construction volumes mitigated larger pricefalls. The Real Estate Board of New Yorkestimates that total construction activity in2020 was the city’s lowest in nearly a decade.

LO CAL INSIGHT
Prime European second homes performed
strongly in 2020 with Provence, the wider
Côte d’Azur, northern Tuscany and Lake
Geneva seeing heightened activity
Mark Harvey, Knight Frank International

North of the border, 2020 marked awatershed year for Vancouver (+8%). After
three years of declining prices – in partlinked to higher taxes – its luxury sector got areboot. With overseas buyers absent, there wasa perception of value among local residents
keen to secure larger properties on more
extensive plots. Toronto (+6%) saw a similar
trend, but its turnaround was less dramatic.
Europe’s path was stop-start. Despite
cities leading the results – Zurich (+8%),
Stockholm (+6%) and Amsterdam (+6%) –the focus of transactional activity from June
onwards was firmly on coastal, rural or alpine
resorts, mirroring the pattern seen in the US.
Second-home hotspots in Provence, Tuscany
and the south of France saw successive burstsof activity each time lockdown rules eased.

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INVESTING

Spanish markets saw more muted growth,with Barcelona (+1%) the top-performing
prime market.
In the Caribbean, the British Virgin
Islands (+5%) leads, but prices are rising froma low base following the chaos wrought by
Hurricane Irma in 2017. St Barts (+3%) saw
a flurry of high-end sales and Mustique(+2%) experienced a record number of sales
as the island captured the imagination ofpandemic-weary UHNWIs seeking remoteliving in a secure and private idyll.
In the UK, an eight-week spring
shutdown during the nation’s traditional
peak selling season meant London (-4%)

PA S S I O N SDATA B A N K

P34

LO CAL INSIGHT
Urban living remains aspirational in Asia.
If you live in a major metropolis such as
Tokyo, Shanghai or Hong Kong and wantmore space you buy a bigger apartment, you
don’t move back to the countryside
Justin Eng, Knight Frank Asia-Pacificwas playing catch up over the summer, whilestill contending with ever-changing travel
restrictions and the shadow of a potential nodeal Brexit.
Once the property market was allowed toresume, a release of pent-up demand, boosted
by a welcome stamp duty holiday, buoyed
the market. Rural retreats were a particular
beneficiary with Oxford (+2%) and the HomeCounties seeing strong sales activity as buyers
sought more space. But none could match
Edinburgh (+6%) and Jersey (+5%), where
demand for large family homes surged.
Back in Asia, prime values in Singapore(-0.2%) fared better than Hong Kong (-7%),

T H E W E A LT H R E P O R T 2 0 2 1with the former launching the Variable
Capital Company, a new corporate structure
aimed at attracting hedge funds and family
offices as part of its bid to be Asia’s leading
financial centre. Although Hong Kong saw
several big-ticket sales in The Peak, its
priciest neighbourhood, a weak labour market,
several waves of Covid-19 and tensions
between the US and China stifled demand.
Buenos Aires (-12%) occupies thebottom ranking this year. With properties
priced in US dollars, but mortgages offered
only in pesos, not to mention capital
controls, buying property in Argentina is
far from straightforward.

LO CAL INSIGHT

2020 was a tale of two cities for
New York. While suburbia was in the
spotlight in the second and third quarters,
activity picked up by the end of the year,
especially in Brooklyn and Manhattan.
Overseas investors are eyeing New York– greater negotiability means value, andrental demand is recovering
Steven James, Douglas Elliman, New York

12A Seacliffe Avenue, Belmont, Takapuna, Auckland, for sale via our partners Bayleys

P35

COASTALRETREAT
Auckland leads
the PIRI 100

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Market forces
The key trends that shaped prime residential prices in 2020

1

Demand was domestic
in nature

With cross-border flows largely halted by travelbans, those markets reliant on large inflows
of international demand, such as Monaco
and Dubai, saw prime sales volumes decline,
while Vancouver and Miami saw domestic
buyers step in to fill the gap.

2

A changing tax landscape

Governments are focused on replenishing
public finances hollowed out by the Covid-19
pandemic. Property and wealth tax revisions
are in the pipeline as policymakers look togenerate revenue and control property prices.
2020 saw Argentina introduce a new wealthtax and South Korea raise taxes for ownersof multiple homes. Changes have also beenmooted in Canada, Spain, the UK and the US.

32020 wasn’t 2008

The prime property market’s response to thepandemic has been markedly different to thatexperienced during the global financial crisis.
There has been no surge in distressed sales
across second-home destinations and minimalsafe-haven capital flight to first-tier cities.


4

Buyers sought green space…

but Asia bucked the trend

Some 56% of respondents to the Attitudes
Survey said their clients are more likely to buy
a property in a coastal or resort destination,and 47% in a rural location, as a result of
Covid-19. The attraction of more space at often
lower prices, at a time when people were lesstethered to offices and schools, is perhaps nota surprise. The story was different in Asia,
where only 27% of respondents are more
likely to buy in a coastal or resort location.
Here, the resort model is embryonic, and the
spotlight on urban living is undimmed.

5Wellness and wellbeing were
even more relevant

Demand for homes in locations that offer
wellness and wellbeing was already on therise pre-Covid, but it has been catapulted
up UHNWI agendas by the pandemic.
Locations such as the Caribbean, the Alps,
the Italian lakes and Aspen rode a newwave of interest in 2020. In future, we
expect the quality of healthcare provision to
be a key consideration for investors andsecond-home buyers alike.

6

Visas still a valuable tool

In the wake of the global financial crisis,indebted southern European economies
turned to “golden visas” as a means to boost
their fragile economies with some success– Portugal’s programme has attracted €5.6
billion since 2012, according to the country’s
Immigration and Border Service. With the EU
and OECD pushing for more transparency
we are seeing tourist economies hit hard by
the crisis turn to short-term visas instead.
Barbados’s new 12-month welcome visa,
aimed at a new breed of digital nomads, saw
almost 2,000 applications between July andNovember 2020 and has been emulated byseveral Caribbean markets as well as Dubai.


7



9


The birth of the
co-primary home

Expectations for second homes are increasing.
With greater flexibility around remote
working, owners are staying longer, withmany now viewing them as “co-primary”
homes. From fast broadband to cinema
rooms, gyms and A-grade technology, second
homes now have a longer wish list to fulfil.

 10

Currency shifts offer discounts

Last year was a year of twists and turns for
currency markets. Traditional safe-havencurrencies such as the US dollar, Swiss franc
and Japanese yen rallied at the start of thepandemic as investors sought shelter, but
the dollar ended the year 7% down against
a basket of currencies. Such shifts, when
added to the price declines seen in thelikes of London and New York, can lead tosizeable discounts.

Education a key driver ofprime demand

Among Asian and African UHNWIs
education is the motivation behind around
10% of property purchases, according to the
Attitudes Survey. Lifestyle and education
increasingly go hand-in-hand. For example,
we are seeing UHNWIs target Swiss ski
resorts, particularly those home to top
international schools that are offering
short-term enrolment options in pandemic
times. The Lemania-Verbier International
School is one such example but others canbe found in Villars and Crans-Montana.

8

were planning a permanent move; themajority were seeking a second home.

Expats on the move

The pandemic has led many expats
to reassess their priorities and plans,particularly those located a long-haul
flight away from elderly parents orchildren at boarding school. Some 64% of
Knight Frank’s agents noted an uptick inenquiries from expats as a result of thepandemic, but they estimate only a third

Currency matters
The five-year discount in prime central London
house values taking account of price andcurrency changes

£

€

US$

-17%
-32%

-23%

Source: Knight Frank Research

For more on the latest trends in prime
residential markets, head online

P37

T H E W E A LT H R E P O R T 2 0 2 1

Relative values
The number of square metres of prime property US$1m buys in selected cities

Monaco 15

Hong Kong SAR 23

London 31

New York 34

Geneva 35

Singapore 36

Paris 42

Los Angeles 44

Sydney 45

Shanghai 50

Tokyo 58

Beijing 62

Berlin 70

Miami 85

Melbourne 87

Mumbai 106

Istanbul 112

Dubai 165

Cape Town 202

São Paulo 252

100m2

Source: Knight Frank Research, Douglas Elliman, Ken Corporation
Exchange rates calculated as at 31 December 2020

Each year, we select 20 prime city markets
and calculate, based on typical luxury
residential values and the exchange rate at
the end of 2020, how many square metres
US$1 million will buy you.

Monaco and Hong Kong are still the world’s
most expensive residential markets – positions
they have held for the past decade. London
retains its third spot with New York in fourth
place. Geneva has moved up the rankings

this year, while cities in emerging markets
such as Cape Town and São Paulo offer more
space for your money than last year, due to a
combination of softening prices and currency
shifts against the dollar.

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Safe havenFrom master planning entire communities to interior design, Covid-19
is reshaping the way developers, architects and designers are looking at our homes
and the environments around them. The Wealth Report talks to leading exponents
WORDS – ANDREW SHIRLEY
to uncover the latest trends

Place-making
Location, location, location is the war cry of
estate agents and property developers theworld over, but David Hutton, Singaporebased Managing Director of Development
at Lendlease, one of the world’s biggest
developers, thinks the Covid-19 pandemic
may have shifted the dial.
“In many respects, the old mantra isstarting to change, to focus on three newelements – connectivity, amenity and place.
The role of the places where people spend
their work time, their leisure time and indeed
their home life is increasingly important.
I think the pandemic will strengthen thedesire for quality places.”
One expression of this that has grownin prominence during the past 12 months isthe concept of the 15-minute city. Hutton
agrees that there will be more focus onsuch ideas, at least to an extent.
“The 15-minute city, or the 15-minutecommunity, is really about access to amenity
and connectivity. But I don’t think the
pandemic means we will only ever want toventure within 15 minutes of our homes.
“I think once it’s safe to do so, you will
still see a real desire among people to traveland mix. That said, I do think the pandemic
has increased the desire for greater amenity
and that we will see more and more mixeduse development. There will be more district
centres, and more emphasis on place and thequality of ground plans.”
Space is probably the one amenity mostmissed by urban dwellers during lockdowns,
leading many to look for a new home in the
countryside, but Hutton isn’t convinced
people will move out of cities en masse asa result of the pandemic.
“In terms of sustainability, transport andclimate change, we cannot really afford to
move people back into the countryside, andeconomically I think the world has proventhat doesn’t work either. Personally, I believethat the role of the city will in fact become
more important.
“What I do think we will see though
is a lot more of the natural environment
coming into cities and I believe proactive
governments and proactive developers will
really seek to bring green into the cities toensure there is ample open space.
“To quote one simple fact, today most of
our cities are made up of around 25% roads.
Given where the world is going in termsof technology and autonomous transport,a fantastic opportunity exists to replace a
lot of hardscape, black top and quite harshenvironments with more landscaped areas
and green space for people to enjoy.
“Very few people buy or lease space
based on just the building alone. I think
the environment and the ground plan andthe public realm and the amenities that

P38

Head online to see the full interview
with Lendlease’s David Hutton,
including his views on the changing
role of the workplacecome with that are critically important. So,for example, at Elephant Park in London
we’re now in the final stages of a major newpark that’s going to be at the centre of that
community. I think in a post-Covid worldthat will be more valued than ever. Even if
you live in a higher density community, youwill still have access to green space.”

Sanctuaries
Noeyy Hyun Park, Vice President of
WONYANG Architects & Engineers, who iscurrently working on the eagerly anticipatedmixed-use Gallery832 project in Gangnam,
Seoul, says Covid-19 has had a profound
impact on his approach to design. “Themost fundamental purpose of architecture
is to enrich human life and to protect it frompossible outside dangers.”
At the most basic level, the pandemic has
highlighted the importance of hygiene andsafety, points out Park. “As the possibility of
infection grows, so does the desire for more
touchless technology. Gallery832’s facialrecognition technology reflects this, andoriginates from the experience of Covid-19.”
Lower-tech solutions are also being
applied. “Covid-19 has certainly made people
think more about parts of their home that
don’t usually get too much design attention,”
explains Charu Gandhi, founder of interior
design studio Eliycon.
“Service or second entrances in London
homes are generally ignored, but now clientswant a zone which is separate from the restof the house where they can store incoming
produce, wash their hands or change theirclothes. They are also using more materials
thought to have anti-viral properties, suchas copper and brass.”
Lockdowns have also created newchallenges for families. “The pandemic has
clearly taught us that there should be moreconsideration for the needs of privacy andT H E W E A LT H R E P O R T 2 0 2 1

mutual communication between residents
from the very beginning of the residential
design process,” says Park.
Sound-proofing is top of the list for manyclients, agrees Gandhi. “A lot of my clientsare usually on the move so much they hadn’t
realised how noisy family life can be when
everybody is at home for so much more of
the time.”“Covid-19 has forced individuals torecognise home as a space where personal lifeand business are blended,” adds Park. “Now,a prime residence in the centre of the cityneeds to satisfy not just those spending theirafter-work hours on the living room couch,but also those spending the majority of theirtime there and using the entire house.”
Absence makes the heart grow fonder,
says Mia Kitsinis of boutique interior designer
Accouter, who is seeing more demand forbiophilic designs from her clients. “Last year,
we spent a substantial amount of time indoors
and we probably will in 2021 too. Clients havemissed spending time outside, so the main
focus in interiors has been on bringing theoutside into our living spaces, making surethe air we breathe is fresh and full of oxygen.”This craving for an oasis in the city and fora greater connection to the outside world has
also inspired Park. “By incorporating a terrace
design into every unit, we’ve successfully
realised more open space, while keeping theprivacy in the centre of Gangnam, which istruly ground-breaking in Seoul.”
Space and privacy are two things thatclients of Aman Resorts have come to takefor granted, says a spokesperson for the
luxury hotel and spa group, which is currently
working on its first branded urban residences
project at Manhattan’s iconic Crown Building.
“We can talk a lot about design and amenities,
but trust is also a very important concept.
The majority of buyers for Aman Residences
New York have come from our own network
so they are already familiar with the ethosof the brand.”By mirroring the feel of its resorts to create
an oasis connecting owners with nature, evenin the middle of a city, Aman is encouraging
people to keep faith with urban areas.
“When we open later in the spring, we hope
it will coincide with the beginning of a newchapter for New York, the start of the city’s
rejuvenation from the pandemic.”

For more information please contact stacey.watson@knightfrank.com

P39

URBAN OASES
Facing page.
Top: Paya
Lebar Quarter
by Lendlease,
Singapore
Bottom:Gallery832,
Gangnam, Seoul
This page:
Aman Residences
New York

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P40

WHAT LIES AHEAD?

We reveal our forecasts for prime residential property prices
W O R D S A N D A NA LYS I S – K AT E E V E R E T T-A L L E N
in 25 key locations around the world during 2021Luxury housing markets performed
better than expected in 2020,
with 66 of the 100 markets
featured in our Prime International
Residential Index (PIRI) seeing growthand prices, on average, rising by almost 2%.
Looking ahead, the picture for 2021 isa similar one, with prices again predicted torise by an average of 2% but, as our selectionof 25 prime locations shows, within this
there is wide variance in forecast performance(see opposite).
Seoul leads with growth of 7%. Despite
20 rounds of cooling measures, demand
continues to outstrip supply in a city witha population larger than that of either
London or New York.
Shanghai and Cape Town share second
place with a 5% mooted rise, albeit forcontrasting reasons. Economic recovery in
the Chinese Mainland’s commercial hub isalready well underway with China’s GDP
forecast to grow by over 8% in 2021. In Cape
Town prices are rising from a low base,having seen a decline on the back of
economic weakness, currency volatility
and the drought of 2018.
Miami, Lisbon and Auckland share fourth
place with price growth of 4%. We expect
pent-up demand, a benign tax regime andlow interest rates to be their respective drivers.

MARKETRECOVERY
CliftonTerraces,
Cape Town

L ondon is one of a number oflocations set to see 3% price growth in
2021. A stamp duty holiday, an end to
Brexit-induced political uncertainty andthe potential relaxation of international
travel restrictions will likely offset a newsurcharge for foreign buyers and a potential
strengthening of the pound.

Taking control
Markets such as Auckland and Vancouver,which saw strong pent-up demand post
Covid-19 lockdowns, will see sales volumes
and price growth moderate. Policymakers inboth markets have a proven track record ofintervening to curtail price inflation.
Sydney, Singapore and Los Angeles
sit mid-table with forecast price growth of
3%. All have seen tight prime supply levels
exacerbated by the pandemic.
US cities have the capacity to surpriseon the upside in 2021. If the dollar weakens
to the extent some analysts are predicting,this could motivate more overseas buyers.
A rethink of the state and local tax (SALT)
deduction could also be on the cards,
redirecting attention back to states such as
New York and California.
In Europe, steady and sustainable growth(3%) is the outlook for Berlin, Paris andMadrid, with comparative value, limited
new stock and the delivery of high-grade
projects their respective market drivers. All
three cities have regeneration projects plannedin the coming decade that will upgrade stock
and improve accessibility.
Only two cities, Dubai (-2%) and Buenos
Aires (-8%), are forecast to see prime values
decline. Latin America, with a limited vaccine
rollout, is set to recover more slowly thanother regions. Dubai’s rate of price decline
should slow as travel restrictions ease and the
postponed Expo 2020 (hopefully) takes place.
Of course, forecasting in such turbulent
times is fraught with risk. See opposite forjust a few of the big issues that could affectglobal prime property markets in 2021.

How did we do in 2020?
Notwithstanding a global pandemic and thelargest economic downturn since the Great
Depression, we came within fewer than
three percentage points of getting it right in
11 of the 25 markets tracked, and we werefirmly on the money with Vienna and Mumbai
where our forecast was accurate to within
less than half a percentage point.
Auckland and Vancouver wrongfooted
us but, in our defence, a pandemic-fuelled
post-lockdown surge was hard to foresee
at the end of 2019.
Our European city forecasts proved
mixed. We were within one percentage point
when it came to Lisbon, Geneva andMonaco, but less accurate in relation to
Paris, Madrid and Berlin. All posted weakerprice growth than we envisaged, asinternational travel bans clipped the wingsof investors and prime buyers alike.
Hit by four waves of Covid-19 andheightened political tensions, Hong Kong
dipped lower than we anticipated. For
London, our upbeat forecast has been put
back a year: not even a stamp duty holiday
could offset a spring market shutdown andtravel bans. New York eluded us by 2%.
We’d priced in a bumpy year… we just didn’tknow how bumpy.

P41

T H E W E A LT H R E P O R T 2 0 2 1

What we’ll bewatching in 2021:

Prime prospects
Prime residential prices, annual % change

Travel recovery
2020 Forecast

Seoul2020 Actual2%

Shanghai

12%3%Cape Town

5%

Lisbon4%

London1%

Vancouver

6%
3%
18%

Geneva4%

Sydney4%

Monaco3%

Berlin

3%

Tokyo

3%

8%

3%
3%

3%

The extent to which second-home buyers
prioritise destinations with fast broadband
for home working

3%
3%
3%

-4%

3%
6%

3%

1%

2%

Barcelona

2%

1%

2%

0%

-1%
-3%

Hong Kong SAR

-2%

-7%

Dubai

-2%

-6%

Buenos Aires-6%

Source: Knight Frank Research
Source: Knight Frank Research

1%
0%

-2%

New York

26%

of UHNWIs are planning to buy a newhome in 2021, according to respondents
to this year’s Attitudes Survey

0%

-5%

-12%

The impact of Covid-19 on the scale of future
infrastructure projects like the Paris Olympics
and China’s Belt and Road Initiative

1%

1%

Mumbai

Projects take a hit?

The need for speed

-2%

3%

The roll-out and roll-back of “golden”
and “welcome” visas, and citizenshipby investment schemes

3%

ViennaMelbourne

Push and pull

1%

1%

7%

Madrid

3%

0%

5%

Paris

Whether UHNWIs focus on second homes with
better connections to their primary residence

8%

3%

0%

Singapore

4%

3%

2%

How soon overseas students and corporate
tenants return to gateway cities

Close to home

4%

-4%

Renters return

5%

4%

-5%

Los Angeles

5%

-9%

Miami

1%

7%

9%

0%

AucklandThe speed with which commercial air travel
resumes and the Airbnb model recovers

2021 Forecast

0%
-2%
-8%

For more insights into how UHNWIsplan to invest in 2021, view the full
results of the Attitudes Survey online

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P42

Next
neighbourhoods
This year’s selection features more up-and-coming locations
than ever before and profiles a diverse range of urban hotspots	and rural retreats. Need convincing? Our global teamof residential property experts explains its picks

C O M P I L AT I O N – K AT E E V E R E T T-A L L E NT

he events of 2020 have shone
a spotlight not just on how
we interact with our homes,
but also the neighbourhoods
where they are located. The
natural environment, connectivity – both interms of technology and community – as wellas privacy are now more important than ever.
Using our local knowledge, KnightFrank’s global teams have handpicked thosemarkets they believe are primed for growth
in a post-pandemic world. We highlight ten
on the following pages, but head online forour full selection of more than 40 hotspots.
Despite the turmoil, new opportunities
are emerging as the way we live, work,
exercise and interact is changing. Travel
restrictions may be clipping the wings ofprime buyers but with fewer people tethered
to an office, this is likely to change withknock-on effects for second-home markets
and investors globally.

Each of our locations fits into one of four
categories that we know are driving purchasing
decisions among our clients:
DIGITAL NOMADS
Off the beaten track maybe, but wellconnected for a Covid generation set freefrom the office

VALUE OPPORTUNITIESEverybody loves a bargain. Overlooked,
but still full of potential for price growth

SPACE HUNTERS
We’ve never appreciated the great outdoors
so much. Give yourself space to roam

RESILIENT MARKETSBeen there, done that. Markets that have
proved themselves, but still have more
to give

Turn to pages 43–46• Barbados, Port Ferdinand• California, Laguna Beach• French Alps, Favrands, Chamonix• Ireland, Bray, Co. Wicklow• London, Notting Hill
• New York, NoMad• Provence, Uzès
• Seoul, Gangnam• Tasmania, East Coast• Vienna, Danube RiversideP43

T H E W E A LT H R E P O R T 2 0 2 1

Want more hotspots? The full setof almost 50 up-and-coming global
destinations is available online

Despite the turmoil, new opportunities are emerging as
the way we live, work, exercise and interact is changing

A S I A– PAC I F I C
East Coast Tasmania,
Australia

Michelle Ciesielski, Knight Frank Australia

The island state of Tasmania is draped innatural beauty with its picturesque lakes andwaterfalls, white sandy beaches, tall mountain
ranges and dense forests all blossoming withwildlife. The laid-back lifestyle, coupled withthe unspoilt townships, are as captivating as
the magnificent sprawling prestige homes
dotted along the coastline.
Why is it primed for growth?
The economy has undergone a significant
structural change over the past two decades,away from logging and mining. Property
prices have increased significantly, yetthey’re tipped to grow even further over the
coming years given the strong appetite from
active retirees and migrating interstate desk
workers who have proven they can workfrom anywhere.
My favourite bits:
The serenity is unrivalled on a hike up theeye -watering p e ak of Kunanyi (MtWellington), around the turquoise watersof Wineglass Bay in Freycinet National Parkor snorkelling in the Bay of Fires. Pause to
soak up the magnificent view while enjoying
some fresh Tasmanian produce picked up
from one of the local delis or farm shops
earlier in the day.
For more on these neighbourhoods, head online
Africa and Middle East
• Cape Town, De Waterkant• Dubai, District One• Kenya, Tigoni, Limuru• Lagos, Lekki Scheme 1• Lusaka, Bonanza Estate• Nairobi, Miotoni• Uganda, Entebbe
Asia-Pacific• Hong Kong, Kai Tak• Malaysia, KL, Desa ParkCity• NZ, Papamoa, Tauranga• Lake Geneva, Anières• Singapore, District 21• Madrid, Arganzuela• NZ, Auckland, Beachlands• Sydney, Lower North Shore• Tokyo, Shibuya-Ku
Europe• Barcelona, Forum• Berlin, Charlottenburg• Lucca, Lucca surrounds• Madrid, Paseo de la Direccion• Marbella, La Zagaleta• Milan, Scalo Porta Romana• Paris, 16th Arrondissement• Portugal, Praia da Luz• Birmingham, Jewellery Quarter• Portugal, Quinta da Marinha• Côte d’Azur, Beauvallon• Tuscany, Bolgheri• Côte d’Azur, Super Cannes• Swiss Alps, Champéry• Florence, Via del Corso• Venice, Dorsoduro

North America• BVI, North Sound, Virgin Gorda• Florida, Popano Beach• Houston, Memorial• Mass., Martha’s Vineyard• Vancouver, Shaughnessy

What will my money buy me?
A new three-bedroom apartment in Hobart
starts from A$800,000 with limited waterviews. An established five-bedroom housewith a garden and water views starts from
A$1.2 million.
One thing the locals like to keep secret:Locals love picking up fresh apple cider,berries, cheeses, wine, whisky, and fresh
oysters and crayfish from Bruny Island at
the weekly markets at Salamanca Placeand Farm Gate.

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P44Gangnam, Seoul,
South Korea

Joon Choi, Knight Frank South Korea

Gangnam district, globally famous due to2012’s quirky pop hit “Gangnam Style”, is thethird largest of Seoul’s 25 districts. Literally
meaning south of the river, it is sandwiched
between the metropolitan satellite districts of
Bundang, the CBD in Gangbuk and Pangyo,
South Korea’s Silicon Valley.
Why is it primed for growth?
There is a high concentration of wealth in
the area. Apartment prices have risen by
86% in the past 18 years and Gangnam boasts
Seoul’s highest price per square metre.
Its location and transport links attract amillion commuters every day. Large scale
redevelopment projects are currently
under way, with LG, Lotte and other firms
redeveloping entire blocks to relocate
their headquarters. Its schools are famousfor getting students into Seoul National
University and other top universities.
My favourite bits:
Not only is Gangnam considered to be South
Korea on steroids, it’s also home to Asia’s
largest underground mall, Starfield COEX Mall.
The mall houses, or is connected to, many
luxury brand stores, movie theatres, anaquarium, casino, duty-free shops, five-star
hotels and department stores.
What will my money buy me?
Exclusive membership into an elite inner
circle that oozes affluence and exclusivity.
Prices at a new high- end Gangnam
membership residence, Gallery832, range
from US$2.8 million to US$4.6 million. Most
units are similar in size, but the price varies
depending on the view.

Top: East
Coast, Tasmania
Bottom left:
Gangnam subway
stationBottom right: Placeaux Herbes, Uzès

One thing the locals like to keep secret:
From hot clubs, bars and eateries – 19 ofSeoul’s 33 Michelin-starred restaurants arehere – to plastic surgery clinics and supercar
dealerships, Gangnam is the playground formany super-rich South Koreans and theirjetsetting friends. The best-kept local secretis a universal truth: “When in Gangnam, do
as the Gangnam folks do.”P45

E U RO P E
Notting Hill, London

Chris Druce, Knight Frank Research

A wonderfully diverse and dynamic part ofwest London where “Bohemian meets supercool”, Notting Hill offers a fantastic arrayof culture and amenities, as well as close
proximity to the green spaces of Holland
Park and Kensington Gardens.
Why is it primed for growth?
With 16 incredible communal gardens, many
properties in W11 offer a taste of country
living in the city, currently in strong demand.
My favourite bits:
I love the sweeping crescents opening on
to communal gardens and the tucked away
hidden gems. Westbourne Grove, the main
artery running east to west through the heartof Notting Hill, offers a perfect slice of café
culture and wonderful shops including therecently opened Sally Clarke’s, wholefood
kitchen and bakery The Good Plot which
offers farm-to-door milk delivery and
The Notting Hill Fish & Meat Shop, describedas “the chef ’s supermarket”.
What will my money buy me?
Apartments start from around £500,000
but for a thoroughbred family home look nofurther than Ladbroke Square (guiding at£7.45 million) or Elgin Crescent, guiding at

T H E W E A LT H R E P O R T 2 0 2 1£12.5 million and with access to the gardens
featured in the iconic film, Notting Hill.
One thing the locals like to keep secret:Many of those who come to us for help andadvice tell us something that we’ve known
for quite some time – that once you put downroots in this very special place, W11 becomespart of your DNA.

Uzès, Provence, France

Laetitia Hodson, Knight Frank International

This elegant medieval town is situated to
the west of Avignon and north of Nîmes in
Languedoc-Roussillon. The first Duchy inFrance, Uzès is classified as a City of Art andHistory by the Ministry of Culture, and has
a beautifully preserved historical centre.
Why is it primed for growth?
Uzès has only been recently discovered byforeign buyers who in the past have tended
to look to the traditional part of Provence,
between Avignon and Aix-en-Provence. It
is ideally situated, only half an hour’s drivewest of Avignon with its TGV station and the
airport at Nîmes. Spain is also close by.
My favourite bits:
Stroll through the small pedestrian streets anddiscover the old façades, the medieval garden,
the Duke’s Castle and the Duchy Park, thecathedral, the small shaded squares and thevarious fountains. Then cool off under the shadeof the plane trees at one of the cafés on the Placeaux Herbes, a favourite spot, and maybe sample
the local specialty lasagne de brandade de morue.
What will my money buy me?
For between €1 million and €1.5 million
you can still find a traditional Provençal
farmhouse. From €1.5 million to €3 million
there are some exceptional – and well preserved– Renaissance castles. In the historical centre
you could acquire a renovated apartment foraround €500,000.
One thing the locals like to keep secret:If you enjoyed the lasagne, head to Maison dela Brandade on the Boulevard Gambetta forauthentic homemade brandade to take away.
The creamy cod purée is made with olive oil andmilk, and seasoned with garlic and sometimes
truffles. A true delicacy.

Bray, County Wicklow, Ireland
Ray Palmer-Smith, Knight Frank Ireland

Bray was historically a coastal holiday
destination, but is now also a busy commuter
town and popular residential area forfamilies. Located south of Dublin City itsits on the border of County Dublin andCounty Wicklow.
Why is it primed for growth?
Following the rise in popularity of neighbouring
town Greystones with developments like
Marina Village by Glenveagh Homes as well astransport improvements planned including a
new railway station and more trains to Dublin,developers including Ballymore and Lioncor
have acquired sites for large scale residential
developments in Bray. There has been a gradualexpansion of small independent coffee shops
and eateries.
My favourite bits:
The beach is one of the best on the east coast.
Grab a coffee at Copper & Straw and hike up Bray
Head for an incredible walk with breathtaking
views out over the Irish Sea.
What will my money buy me?
Expect to pay anywhere from €350,000 to€600,000 for a prime waterfront apartment
in a new development. Further backfrom the coast, new family homes start ataround €400,000.
One thing the locals like to keep secret:
Away from the main seafront bars andrestaurants are cool hangouts such as Catalyst
and The Harbour Bar. Nearby Powerscourt
Golf Club is considered one of the world’s most
picturesque courses.

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P46Danube Riverside,
Vienna, Austria

Oliver Banks, Knight Frank International

Döbling, otherwise known as the 19th District,sits on the Danube, and is surroundedby vineyards. The waterfront area blends
vibrant city life with a relaxing vacation
vibe. A 15-minute drive puts you in Vienna
city centre, while a five-minute journey in theother direction takes you to the historic townof Klosterneuburg with its Baroque abbey
and excellent international schools.
Why is it primed for growth?
Situated by the river, in the area of theKuchelau harbour, the location is unique,because the ability to live by and access thewaterfront is restricted elsewhere in thecity. The affordable luxury of the area andgood connections to the schools, culture
and amenities of both Vienna centre andKlosterneuburg are the main drivers ofgrowth in this laidback neighbourhood.
My favourite bits:
Döbling’s private beaches and bathing piers,
boat moorings, sports and wellness
facilities, including fantastic hiking routes
through the local pine forests and vineyards,
are firm favourites. Even better, all thiscan be found just 15 minutes away from
Vienna city centre.
What will my money buy me?
€1.5 million will buy a large luxurious threebedroom penthouse with two terraces,
a balcony and amazing views over thewater. Budget €930,000 for a three-bedroom
apartment with huge garden, terrace
and loggia.
One thing the locals like to keep secret:The charming village of Kahlenbergerdorf,
with its small lanes winding around thepicturesque parish church and restaurants
specialising in excellent fish, fried chicken
and wine. The most beautiful view of thevillage, the Danube and Vienna can beenjoyed after a wonderful walk through thevineyards from the Heurigen Hirt (a typicalwine tavern).

Les Favrands, Chamonix,
French Alps
Roddy Aris, Knight Frank International

Located to the south-west of Chamonix town
centre, Les Favrands has traditionally beena residential part of the Chamonix Valley,
but is becoming increasingly popular withinvestor owners given its proximity to town,
convenience and good value pricing.
Why is it primed for growth?
More established areas on the north-easternside of town have reached a price pointthat excludes many buyers with families
who struggle to afford four- to five-bedroom
chalets. The town hall is focused on raising
the permanent population in the valley
and is encouraging quality development
in Les Favrands. There are two schools anda protected cycle path leading right into
town. There are also dramatic views of the

Aiguille du Midi, the Bossons Glacier andMont Blanc itself.
My favourite bits:
The many small trails and pathways thatwind through the various villages to thesmall resort of Les Houches and up into themountains on both sides of the valley.
What will my money buy me?
€1.5 million will get you a good-sizedfamily chalet within reasonable walking
distance of town, compared with €2.3
million for something similar on the northeastern side.
One thing the locals like to keep secret:All of the above! A quarter of the permanent
population of the valley live in this area,
providing a real sense of community, withmany attracted by the town’s broad range of
amenities and its social scene.

P47

T H E W E A LT H R E P O R T 2 0 2 1

N O RT H A M E R I C A
NoMad, New York, US

Tracie Hamersley, Douglas Elliman

As the name implies, NoMad – or North ofMadison Square Park – is anchored by some
6.2 acres of beautifully landscaped green
space. Spanning several blocks in the mid toupper 20s, the area is a mix of pre-war
and modern commercial and residentialbuildings, including the Empire State
Building, as well as some of the top-rated
restaurants in the city.
Why is it primed for growth?
There are a number of exciting new condos
in the pipeline, from Madison House to The
NOMA, plus the first Virgin Hotel locationin New York (slated to open in 2021). Then
there’s the small matter of the second site
for Amazon, aka Jeff Bezos’s mega-milliondollar penthouse and various other units at
212 Fifth Avenue, one of NoMad’s mostprestigious new condo developments.

Previous page top:
Danube riverside,
ViennaPrevious pagebottom: Chamonix
Right: View from
Madison SquarePark Tower,
NoMad, New YorkMy favourite bits:
The Ace Hotel, built in 1904, was the firstboutique hotel and bar destination of its
kind in the area, while 230 Fifth is a massive
duplex penthouse rooftop bar that evokes
Miami Beach with tables and benches amid
palm trees juxtaposed with a front-row
view of the Empire State Building (avoid
on weekends!).
What will my money buy me?
You can get a foothold in NoMad for as little
as US$345,000 for a studio in a co-op, with
one-bedroom apartments ranging from
US$600,000 to US$2.5 million and two-beds
from US$1.3 million to US$8 million. Higherend condo penthouses sell for US$3,000 per
sq ft, ranging anywhere from US$14 million
to US$25 million and up.
One thing the locals like to keep secret:
I will give you three: Sid Gold’s Piano Bar; thespeakeasy Bespoke (hidden behind a coffeeshop); and Oscar Wilde, home of New York’s
longest bar (118.5 feet).

Head online tosee where elsein the US ourlocal experts
are tipping for
growth in 2021
and beyondW E A LT H

CITIESHOMEINVESTING

Port Ferdinand,
Barbados, Caribbean
Andrew Blandford-Newson,
Knight Frank International

Laguna Beach,
California, US

Pegi DiRienzo, Douglas Elliman

Located between Los Angeles and San
Diego, Laguna Beach is renowned for its
artist culture and small-town feel. A uniquetopography of coves, beaches, sea caves,rugged cliffs and 20,000 acres of protectedwilderness make this paradise an excellent
place to spot pelicans, seals and whales, andto call home.
Why is it primed for growth?
Laguna Beach has an action plan in placethat aims to support business and encourage
growth, and places a premium on positive
experiences for residents and visitors.
With an artist colony at its core, it is also
implementing a cultural arts plan, as can beseen from its range of successful galleries,
theatres and festivals. The quaint town also
hosts many thriving businesses, including
boutique hotels, wineries, bistros andgourmet restaurants.
My favourite bits:
The Festival of the Arts features the workof more than 500 of Orange County’s finest
artists. The crowning jewel is the Pageantof the Masters where real people dress up
and pose to mimic a famous piece of art.
This unique production – complete withorchestra, narration and intricate sets – is
not to be missed!
What will my money buy me?
Currently, there are condos for sale in the
mid-US$600,000s and three spectacularwaterfront properties available from
US$31 million to US$41.5 million with five or
six bedrooms and up to eight bathrooms.
One thing the locals like to keep secret:Check the tide times to experience one of
the best local secrets, a tunnel-like sea caveleading to a secluded rocky cove. Begin
your journey to the cave by accessing theThousand Steps Beach. Take the steps built
into the rugged cliff – fortunately, there are
only 233 rather than 1,000 – down to theshoreline, and head south.

Right: Marine life in Barbados

Located to the north of Speightstown andwith its own marina, Port Ferdinand is a
new resort within the Parish of St Peter,offering state-of-the-art technology for thoselooking to take advantage of the island’s
12-month welcome visa. The area is tailoredfor families with a love of the boating lifestyleand who are looking to enjoy the island’s
stylish beach clubs and restaurants.
Why is it primed for growth?
We anticipate this area further north along
the west coast of the island will become
increasingly popular with those buyers
looking for luxury turn-key residences, yetstill wanting to be associated with the glitz
and glamour of the island’s Platinum Coast.
My favourite bits:
Taking the complimentary ferry across tothe sister resort of St Peter’s Bay to access

PA S S I O N SDATA B A N K

P48

the beach facilities and activities there, andswimming with sea turtles.
What will my money buy me?
US$3 million will buy a large, luxurious
and elegantly furnished three-bedroom
apartment overlooking the port. Budget
US$8 million for a five-bedroom penthousewith sea views and a plunge pool and bar.
One thing the locals like to keep secret:
After a warm and laidback day on the beach,heading for sundowners and a delicious
dinner at Sea Shed.

Where else should digital nomads
have in their sights? View more
locations online

P 4R
9T FOUR
PA

I
N
V
E
S
T
I
N
G

T H E W E A LT HAt
R Ea
P Oglance
RT 2021

52

Commercial sense
US$232 billion was invested
privately into property in 2020

54

A family affair
The latest family office
investment and succession trends

56

Father & son
A dynamic Philippines businessduo explain their success

60

Weather map
20 million sq km will be in a
new climate zone by 2050

Unwrap the multiple drivers and trends
steering global investment and commercial
property markets that will shape decisions
now and post-Covid

W E A LT H

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PA S S I O N SDATA B A N K

P50

We cast our eyes over some of the biggest investment trends
dominating the headlines, ask what they mean for private investors
and wonder how they might play out in 2021

Trending up
WO R D S – F LO RA HA R L E Y

Running of the bulls

Emerging markets“New normal” opportunities

Overvalued, in a bubble, inflated – a selectionof current favoured ways to describe equity
markets, particularly those in the US which
hit record highs last year, despite the Covid-19
pandemic. Since early 2009, the S&P has
risen nearly 500%, recovering quickly after
a sharp blip in March 2020.
However, as analyst Capital Economics
points out (among other factors), thoughvaluations for some equity markets lookhigh by historical comparisons, this isjustified by lower-than-average interest rates.
Swiss bank UBS notes that all theconditions (rapid rises in Bitcoin being oneof them) indicative of speculative investing,which helps create equity bubbles, arecurrently present in the market. But, it
argues, ultra-low interest rates andcontinuing government stimulus measuresmean stocks and shares are still attractive.
That the 1918 Spanish flu pandemic wasfollowed by the Roaring Twenties a century
ago has led some commentators to revisit thephrase, but this time wondering if the boom
can be replicated without the hangover.

A weaker dollar, concerns over US equity
valuations, a bounce back in commodity
values and the potential for strong postpandemic corporate earnings growth (28%,
reckons a UBS note) has brought emerging
markets back into focus.
David Bailin, Chief Investment Officer at
Citi Private Bank, notes a general “movement
to high growth Asian markets and a tacticalmove to Latin American markets” as two of
Citi’s biggest investment themes.
Plenty agree. The benchmark MSCIEmerging Markets Index had already gained
9% during 2021 at the time of writing (21January), largely driven by Asian tech ande-commerce businesses. Local stock markets
have also hit record highs.
Not everybody has been swept along,with some investors citing the risks
surrounding corporate and political
governance for their reluctance. Bloomberg’s
fear–greed indicator, which measures sellingstrength versus buying strength, for the
MSCI measure, has climbed to its highest
level since October 2011.

The two biggest industries to have garneredattention and opportunity during the
pandemic are tech and healthcare. Formerly“disruptive” businesses like Zoom are
now mainstream.
But will touchless technologies continue
to dominate as the hangover from thepandemic rolls on? Could edtech and digital
health be used to bridge inequalities acrossboth advanced and developing economies?
Will we still be using virtual hangouts when
meeting in person becomes a viable option
once more?
Identifying the “of-the-moment trends”
and correctly identifying those that will
constitute the “new normal” is where value
will be found.
Joe Biden’s presidency also ushers inanother kind of new normal. We discuss ESG
investing on page 52, but Biden’s immediate
reversal of his predecessor’s decision toleave the Paris Climate Agreement, and his
less heralded, but arguably more important,moves on climate change accounting, will
give a big boost to environmental investors.

P51

T H E W E A LT H R E P O R T 2 0 2 1Real estate’s appeal

The new gold

In an environment of volatile equity markets and lower
yielding bond markets, the investment case remains forthe right sort of real estate.
As well as offering potential for diversification andinflation-hedge benefits, real estate that harnesses asset,
geographic and market resilience has the potential toaccess the benefits of local growth drivers, the upsideof structural change and recovery from the pandemic.
Different sectors capitalise on divergent trends.
Residential assets take advantage of demographic
changes, whereas data centres and life sciences capture
the rise of innovation, which tends to occur during
periods of dislocation.
Parts of the retail sector are facing the effects ofan acceleration of structural changes that werealready occurring before the pandemic, as e-commerceincreases globally. Yet much of the industrial sector isbenefiting from the same change and has continued
to see firm relative demand.
The type of real estate targeted will depend on theportfolio balance. Some will be looking to capitalise on
these trends but there is also evidence of continued
weight of money targeting core, safe-haven incomeproducing real estate, such as offices, in the most liquid
global centres that demonstrate market resilience.

Cryptocurrencies, particularly the most notorious,
Bitcoin, have been touted by their disciples as the newsafe-haven alternative to gold since 2014.
Over 2020, the value of Bitcoin rose by more than
300%, breaking the US$40,000 mark for the first time inearly January. This, however, was followed by a fall of
US$10,000 in a matter of days, highlighting its volatility.
One thing supporting valuations is relative scarcity.
While the supply of gold rises by around 1.25% each year,
only 21 million Bitcoins will ever exist, with an estimated18.5 million already having been “mined” and as manyas 4 million “lost”.
Although regulators remain sceptical, funds andinvestment banks are starting to come on board, lending
crypto a bit of wider credibility.
Those who bet big on Bitcoin last year have reaped
rewards, with Forbes noting that the surge has evencreated new billionaires. But is this the ultimate bubble?
For those with a high appetite for risk the pay-off
could be huge. JP Morgan suggests a long-term pricepossibility of US$146,000, while the more bullish
Tyler Winklevoss has said its value could even rise as
high as US$500,000. With such wild price instability,
though, Bitcoin is unlikely to steal gold’s safe-havenstatus any time soon.

See page 52
for more realestate trends

W E A LT H

CITIESHOMEINVESTING

PA S S I O N SDATA B A N KP52

PRIVATEPROPERTY

Our real estate investment dashboard reveals the private capital 		investment flows of 2020, while we highlight five key 		W O R D S A N D A NA LYS I S – V I CTO R IA O R M O N D
themes UHNWI investors need to follow in 2021

P

rivate capital was undeterred by the
Covid-19 pandemic and continued to invest
in commercial real estate during 2020.
While the volume of private capital was down
on 2019, a provisional total of US$232 billion
was invested – 9% above the ten-year average. We expect
this to rise further once all deals are accounted for.
According to our Attitudes Survey, a quarter of UHNWIsplan to invest in commercial real estate in 2021. Below are
five key drivers – which are discussed in more detail in
our Active Capital report – that we anticipate will shapemarkets throughout the year.

Safe havens
Large, relatively liquid, transparent markets with afavourable legal system should continue to attract global
private capital. Europe remained a relative safe havenover 2020 and we forecast countries such as Germany
and the UK to be key recipients of real estate investment
in 2021. Elsewhere, locations such as South Korea, which
benefited from double-digit stock market gains lastyear and where workplace mobility is back to prepandemic levels, saw an increase in real estate investmentby private investors. We expect this to continue this year.

Near neighbours

According to
our Attitudes
Survey, aquarter of
UHNWIs plan
to invest incommercial
real estate
during 2021

Global travel disruptions provide opportunities for private
investors to access more local markets. This includes
locations that in normal circumstances would potentiallybe targeted by more international, institutional, capitaland therefore face larger competition for assets. Private
investors may benefit from enhanced local understanding
and ties to these countries. We forecast this intra-regional,
near-neighbour investing to be most significant within
Europe and range from the Nordics to areas within eastern
Europe, where logistics trading routes continue to develop.

As corporates increasingly incorporate environmental,social and governance (ESG) principles into their ethos,and look to locate in buildings that reflect this, sustainablebuildings are likely to help attract and retain tenants.
In addition, investing in real estate which is, or has thepotential to be made, sustainable, could help private
investors secure financing more easily against these assets.

The need for good governance
While environmental considerations are seeing seismic
growth in demand, the “G” in ESG is also important for
private investors. Governance incorporates the checks
and balances in place to make decisions and includes
such factors as diversity of decision-making. The ability
to make good decisions is vital in times of stress, such as
the global pandemic. In our Active Capital research, we
compared governance scores for global listed retailers
and found that higher scores correlated with higher
average profitability and return on equity. This suggeststhat considering governance could be a supplementary
way of considering tenant covenants, something that is ofincreasing importance in current conditions.

The rise of data centres
Almost all of us were increasingly incorporating data
into our lives, even before the pandemic accelerated
the trend. Video conferencing, remote file access, digitalcontent and social media platforms, online shopping,
the growth of artificial intelligence and big data in thecorporate world are all driving demand for data centres
and feeding into investment opportunities globally.
While still a relatively nascent sector and one that presents
a unique set of challenges, from power and security toaligning with ESG targets, there are significant
opportunities, from the development stage right the way
through to operational platforms.

Environmental sustainability
With US$138 trillion of assets globally now managed byfinancial firms signed up to voluntary climate change
financial disclosures under the framework created by
the Task Force on Climate-related Financial Disclosures,private investors cannot afford to ignore the growing
mandate for green assets, including green real estate.

Go online to view the full results of our
Attitudes Survey and gain more insights
into how UHNWIs plan to invest in 2021

P53

T H E W E A LT H R E P O R T 2 0 2 1

PRIVATE CAPITAL REAL ESTATE INVESTMENTS
Who’s buying?

Unknown
27.2

Total global real estate investments in 2020* split by buyer type (US$bn)

The Attitudes Survey shows…

User/other 33.5

The average asset allocation in UHNWI
real estate investment portfolios

27%
9%Residential private rented sector (PRS)0%Change on 10-year average -6%

23%

Offices-35%
Private231.9

Institutional
329.3

Public98.0

20%

Retail9%Development land8%

Hotels and leisureSource: RCA *Data provisional

8%

Industrial... in what sectors

6%

Logistics

Private capital real estate investments
in 2020* split by sector (US$bn)

Senior housing and care
7.1
Industrial and logistics
34.0

Offices
59.2

5%Retirement
Agricultural

4%
3%

Infrastructure

Apartments
88.9

Retail27.7

Education

Hotels13.0

Student housing

Residential condominiums
1.9

Source: RCA *Data provisional

Healthcare... and where2%2%Note: The remainder is in “other” real estate assets

UK

Cross-border 3%
investors

5%

6bn
92%

8%

5bn

5bn

99%

4bn

More to come

99%
83%

1%

While our provisional data for private real estate investments
in 2020 gives a good indication of trends, it is likely that there
will be upward revisions. For example, as The Wealth Reportwent to press last year, we reported a provisional figure of
US$333 billion for 2019. This later rose 4% to US$347 billion.
Given that the level of private capital invested in the UK during
Q1 to Q3 was 4% higher than the same period in 2019, we
expect the provisional 2020 figure – currently marginally belowthat of 2019 – to be boosted significantly.

China

47%

FranceGermany

US

67%

95%

Sweden

97%

6bn
100%

Netherlands

8bn

Canada

8bn
100%

Japan

11bn

South Korea

11bn

Domestic
investors

2%

Source: The Wealth Report Attitudes Survey

Top 10 countries for private capital real estate investments in 2020* (US$)
142bn

2%

1%
17%

33%
Source: RCA *Data provisional

53%

The 2020 dip
Rolling 12-month total of private capital real estate investments (US$bn)
400

100%

350

100%

99%

99%

300
250
200
150
100
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4*
2010
Source: RCA *Data provisional

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

W E A LT H

CITIESHOMEINVESTING

Keep it		in thefamilyPA S S I O N SDATA B A N K

P54W O R D S A N D A N A LYS I S – F LO R A H A R L E YThis year’s Attitudes Survey included contributions from more than
50 family offices around the world. From succession planning to property
	investment, we share some of the key findings based on those
responses, as well as insights from our global Private Office teamAs part of our Attitudes Survey,
we asked respondents
whether they had reviewed
their succession plans in
the light of Covid-19. Afterall, it’s hard to beat a global pandemic that
disproportionately affects older generations
for bringing the issue to the fore.
At first glance it seems odd that family
offices appear to be less alive to the issue –48% have reviewed their plans, comparedwith almost 60% of UHNWIs. But as
Nic Arnold of PwC’s Private Office points
out, “The whole purpose of having a family
office is to obtain highly personalised
wealth management. At the outset many
will define the family’s overarching ethos
and goals to form a plan of what they wantto achieve and how to assess whether they
are getting there. Approaching things inthis way enables ongoing governance oversuccession planning in good times and bad.”48%

of family offices have reassessed theirattitudes to succession planning during
the Covid-19 pandemic
48% also said the younger generation
have different attitudes towards property

Generation games
According to the Attitudes Survey andinsights from our own Private Office team(see panel), younger generations havea different attitude towards property
xxxxxxxxxx
investment. However, it isn’t only property
where there are differing views. “Thenext generation is much more interested
in technology, AI and digitalisation,” says
Julie Gauthier, a director at Stonehage
Fleming, a multi-family office. “Whether it
be with cryptocurrency, tokenising assets,such as real estate or art, or using theblockchain for storage and data protection,
we are definitely seeing a shift.
“There is also huge interest in theenvironmental, social and governance(ESG) agenda and philanthropy. Many of
the next gens we speak to want to operate
in a more environmentally and socially
responsible way, with less focus on financial
returns and more on impac t andsustainability. On the philanthropic side,
we are seeing interest in working andinvesting in projects in emerging countries
and in areas such as health, hunger,
and sanitation.”
Arnold agrees. “Younger generations
are often particularly focused on climatechange and the environment, not for the
reputational gains, but because that is
who they are and where they want to drive
things. The best way to align this is to thinkof investments and portfolios in terms of‘what this means to us and how it fits into
the family charter’, rather than following
what others are doing.”

What is your interest
in ESG investments?
49%

are moreinterested in
ESG-focusedinvestments
than they were
12 months ago

63%

feel they have all theinformation theyrequire to assess
ESG-related
investments

The Attitudes Survey concurs. Half offamily offices are more interested in ESGfocused investments than they were 12
months ago, with a similar number (54%)
increasing their philanthropic activity.
A UBS survey found that 62% of family
offices believe impact investments areimportant for their legacy.
This is perhaps why they feel more
confident to make such investments. Our
survey found that 63% feel they have all
the information they require to assess ESGrelated investments, compared with just
39% of the wider UHNWI community.

P55

T H E W E A LT H R E P O R T 2 0 2 1

Insights from the Knight Frank Private Office teamAcceleration, lifestyle and influence
Rory Penn, Head of Private Office38%

of family offices are looking to purchasecommercial real estate in 2021

Partial to property
With purpose becoming a bigger driver forinvestments, property could be seen as away to deliver. The built environment
accounts for an estimated 40% of carbon
emissions and, given that buildings arewhere we spend a significant amount of
our time, can significantly impact wellbeing.
The appetite for property, as Yohann
Floc’h of our Private Office in Paris points
out, is growing among family offices. Some
38% of respondents to our survey indicatedthat they are looking to purchase commercial
real estate in 2021 – higher than among thebroader UHNWI community.
Our Attitudes Survey indicates that thefavoured asset within family office property
investment portfolios, accounting for 27%,is the private rented sector (PRS) followed
by offices (24%). Many UHNWIs and family
offices enter the commercial space throughinvesting in markets and assets they know. A
small apartment or commercial investment
can be a good way to enter a particular market
and understand the law and dynamics within
it before taking on riskier investments.
Residential is set to remain a dominanttarget going forward, as noted by ourexperts. Over a third, 35%, of family offices
surveyed stated that PRS is becoming of
more interest with 17% and 15% interested
in retirement homes and student housing
and healthcare, respectively.
However, traditional sectors such as
offices and hotels are still in the mix, with
24% and 19% respectively citing them as ofgrowing interest.

 he theme of 2020 is the acceleration ofT
trends and evolution. The predicted change inallocations and shift of capital out of offices andretail into industrial and alternative sectors has
been sped up by the Covid-19 pandemic.
Younger generations are starting to
influence the way family offices are investing
as they bring new ideas to the table. For
example, even pre-pandemic younger
generations did up to 60% of their shopping
online – so warehouses are an obvious choice.
Real estate is seen as a diversification and aproxy for the sectors they like without some ofthe volatility seen in equities.
A huge part of any real estate portfolio islifestyle – be it a home in the countryside,
London or overseas. The pandemic has
encouraged family offices and UHNWIs to be
decisive and buy what they will enjoy right now
and not just think with their investment hats on.
Long-term and domestic
Henry Faun, Middle East any of my clients used 2020 to focus on
M
assets at home and manage liquidity acrosstheir businesses in the Middle East, as opposed
to investing abroad.
Clients in a stronger cash position havebeen seeking opportunities across all property
asset classes of which they have experience,and taking a long-term view. There can be an
emotional element to investing as well. For
example, if a family used to stay in a particular
hotel, they may want to invest in it.
Many are considering how to make their
existing portfolios work harder by, for example,l o o k i n g f o r va l u e - a d d o p p o r t u n i t i e s,
restructuring, refinancing to release cash flowor leasing out residential property in locations
they won’t be travelling to for some time.
Residential and sense investing
Yohann Floc’h, Paris
There is a significant shift by my clients toincrease the real estate part of their portfolios.
The decision, taken prior to the pandemic, wasto increase allocations by an average 25–30%
over the next three to five years. Covid-19 has
accelerated this appetite and it will now bedone in two to three years.

We are seeing a focus on residential
opportunities including diversified asset
classes such as student housing, senior living
and the private rented sector.
Younger generations now want to givesense to their investments, measuring thesocial and not just the economic benefit.
Patience and currency advantage
Sarah Harding and Kymbal Dunne, Australia
 amily offices are patient and many areFwaiting until the impact of the pandemic, andhow this flows through to property, becomes
clear. Many have increased their liquidity
by converting investments to cash, although
long-term leases with strong covenants havealso been highly valued.
The Australian dollar has strengthened thisyear, creating value opportunities overseas
and broadening the horizon for family
office investments.
Luxury apartment living, which has long
been snubbed in favour of houses, is finallyattractive to Australians. These apartments
provide convenience, access to sharedamenities and, importantly, a new luxurious
international design standard.
Protection and income
Alex James, Commercial Client AdvisoryIncome protection has been paramount. Clients
have been protecting their domestic businessand real estate income through asset
management initiatives and lease restructuring.
There is a flight to quality income. I haveseen a noticeable increase in demand for realestate with “undoubted tenants” such as
government buildings, major global blue-chipcompanies, pharmaceuticals and residential.
We’ve also seen a large uptick in interestfor sectors that have been robust throughout
lockdowns, namely supermarkets, residential
and logistics.

For more information on the
Knight Frank Private Office,see page 82

W E A LT H

CITIESHOMEFamilyI N T E RV I E WS – R I C K SA N TO S , C HA I R MA N A N D C E O,
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P56

Father-and-son entrepreneurs Andrew and Kevin Tan explain
the philosophy and focus on sustainability and succession planningt hat has helped to make Alliance Global one of the Philippines’
most successful conglomerates

fortunes

Dr Andrew Tan

Education
has always
been close to
my heart

PA S S I O N S

I believe that a company’s succession planning is successfulwhen the current leaders and the next-generation leaders
are aligned when it comes to three aspects: purpose,
passion and proficiency. Different generations bring theirown strengths and ways of working to the table. But if those
three aspects are consistent from generation to generation,
the business is more likely to continue growing.
For us, the process was always very natural. We didn’t
have a timeline. As a father, I believe that it’s my job to makemy children interested in the various businesses. Having
said that, I didn’t pressure my children to work for me –I thought that if they wanted to, they would do so at theright time. Kevin opted to join me first in Megaworld, thereal estate arm of Alliance Global. He rose to become CEOof Alliance Global after proving that he had the creativity
and commitment to move the conglomerate forward.
Kevin and I are often on the same page about ourbusinesses, even if our personal experiences have shaped
us and our management styles differently. Kevin is keen
on exploring even more opportunities for innovation,
especially in digital technology. Throughout the pandemic,
innovating through digital transformation programmes
was one way in which we were able to quickly adapt to
the new realities of doing business.

I find every aspect of business interesting. There’s
just so much to learn! When it comes to my proudest
moments, there are very many. Megaworld pioneered theidea of the live-work-play township in the Philippines.
From one township – Eastwood City – in 1996, Megaworld
now has 26 townships as well as integrated lifestylecommunities and estates across 50 cities in the country.
After 41 years, Emperador has become the largest liquor
company in the Philippines. It was only a few years agothat we decided to pursue global expansion. In 2014, we
acquired the world’s fifth largest Scotch whisky company,
Whyte & Mackay. Two years later, we acquired the oldest
and largest brandy company in Spain, Fundador.
If I see certain room to grow, or a new opportunity toadvance further, I go out and take it. One thing is for certain– I only go into businesses that I’m passionate about. Thatmeans the excitement will always be there.
Sustainability is about longevity, not just in business,but in all aspects of life. Each and every one of us
has a responsibility to do our part in creating a moresustainable world. When our world is sustainable, we
ensure that future generations will thrive. I believe thatany fairly successful company should make an effort togive back to society. And I think we can start with helping
the local community.

Better life
Personally, I want to give back to society through education.
When you give people the chance to be educated, you’re
opening the door to a better life. Giving college scholarships
to deserving, less privileged young people is a number
one priority for our Megaworld Foundation. I came fromhumble beginnings, and I can say that education helped me
achieve my dream of becoming an entrepreneur.
On the business side, a lesson I’d like to share is toknow what serves your customers best. Our different
companies operate under one common principle. We
are there to provide a product or a service to make ourcustomers happy. When I think about 5 million Filipinos
drinking our brandy every night, or if every day there areclose to 1 million people enjoying food from McDonald’s
stores – that to me is the biggest reward.
On a personal note, it’s important for a family to havea strong work ethic and a sense of integrity. Strong values
are a good foundation in any family business.

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T H E W E A LT H R E P O R T 2 0 2 1

Kevin TanI truly believe that working in a family business is not abirthright. Being a family member or the next in line does
not mean a person is best suited to take on a specific job or
run the company. I think the acceptance and realisationof this early on can help set the right context, thereby
preserving relationships.
We were always taught at a young age that educational
achievement, skills and work experience are absolutely
essential for any leader. But my father would always
emphasise that, most importantly of all, a true leader
must possess passion, integrity and love.
I have seen how hard my parents have worked tobuild up our companies. My dream has always been to
help continue their legacy, but I have always known that
nothing was guaranteed. We work under a meritocracysystem both at home and in our companies. I’ve had towork hard over the past 20 years to build my credentials
and earn the right to be where I am now.
I’ve learned a lot from my father. Growing up, hetaught us the value of hard work, excellence in everythingthat you do, integrity, humility and compassion for those
who have less in life. Furthermore, he does not command
people; instead he uses his power to persuade, to makeyou believe in his purpose and vision.

Digital innovation

Left: Dr Andrew Tan,
Chairman, Alliance Global
Right: Kevin Tan, CEO,Alliance Global

Go online
to read thefull interviews
with Andrew
and Kevin Tan

Every part of our business is important and interesting,but personally, for the past 20 years, I have enjoyedbuilding places that appeal to our younger customers.
These are places like our lifestyle malls, museums, hotels
and resorts and our various unique thematic townships.
At the moment, I’m also very much enjoying driving
the digital innovation of our various companies. We havecreated a company called AGILE Digital Ventures under
Megaworld, whose role is to create and invest in techstart-ups and solutions that will bring Alliance Global into
the new digital realm.
I also believe there are still a lot of opportunities forthe private sector to be a partner with the government in
helping the country progress through the development
and investment of vital infrastructure. This is why weset up Infracorp specifically to spot opportunities toenable such partnerships. Nothing makes me prouder
than to see the Philippine flag raised in all of ourproperties overseas.
Sustainability is a top priority for Alliance Global.
One of our most notable achievements in 2020 was thecreation of a group-wide initiative, “SustainAGIlity”.
It is a call to action for the companies under Alliance Global
to make a commitment and develop a short- to long-term
strategy to drastically reduce our carbon emissions, withthe aim of achieving complete carbon neutrality in
10 to 15 years’ time.
Our corporate social responsibility (CSR) programmes
are equally as important to us. At Megaworld Foundation
we have given 7,000 scholarship grants since 2007.
But during this pandemic, our CSR efforts became morewide-ranging as the companies under Alliance Global
deployed 4.1 billion Philippine pesos (US$85 million) tohelp in various efforts such as feeding programmes forunder-privileged communities, the creation of Covid-19
testing facilities and increasing testing capacity.
We are now also joining several conglomerates in therace to bring in the vaccine for our fellow countrymen, as
we work to help revive our economy in what should be thelast stages of the Covid fight.
In terms of advice for other family businesses, it’s
important to acknowledge while each one is different,
there exists a set of principles that all can benefit fromfollowing. These include having the right mindset,
respecting seniority and hierarchy, avoiding conflict ofinterest, upholding integrity at all times, establishing acode of governance and, last but not least, developing ahigher purpose.

The Tan legacy
One of the Philippines’ largest conglomerates, Alliance
Global Group Inc. consolidates the Tans’ business interests
in various industries: real estate through Megaworld Corp.;
distilled spirits manufacturing through Emperador Inc.;
quick service restaurants through Golden Arches
Development Corp., or McDonald’s Philippines, a strategic
partnership between Alliance Global and the George Yang
Group; integrated tourism through Travellers International
Hotel Group Inc.; and infrastructure development throughInfracorp Development Inc.

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P58

Travel well
French boutique hoteliers Alice and Jerome Tourbier explain to
the Head of Knight Frank’s family office in Paris their approachto hospitality – and why the Covid-19 pandemic
I N T E RV I E W – YO HA N N F LO C ’ H
will focus minds on sustainable travel and wellness

Wellbeing and wellness seem to be at the heartof your family business, in particularly your Les
Sources hotels. What has inspired you, and do
you think people in general are giving moreconsideration to wellness now?

vinotherapy treatments (a combination of natural hot
spring water drawn from 540m underground combinedwith grape and vine extracts) are a must do, but a ride
through the vineyards heading to a professional winetasting is an experience that also leads to wellbeing.

We are very lucky that part of the western world is nolonger living for essential needs but for living its own
life. This life is customised by the individual according
to their education, their dreams and their capabilities.
Of course, the purchasing of luxury goods has seen
massive growth around the world. But we have observed
also the development of travel and wellbeing as one ofthe priorities for the wealthiest people. We call it
emotional luxury. Taking very good care of your body,of your soul, is becoming a preference for a growing
number of people. We can call it wellness.
But even the travel industry has changed and wehave seen individual travellers looking more and more
for an authentic, local and tailor-made experience.
Moreover, they want to share these experiences with
their families. Memories are probably a new quest in
luxury. This trend is enabling new destinations tochallenge the established top touristic locations.
In our case, this trend has allowed us to promote
our French art de vivre and the famous paradox, whichsays that on average people in France live longer
because of regular consumption of red wine.
Les Sources de Caudalie is located in the Bordeauxvineyards. Estate owners have long sold their greatwines abroad through wine merchants, but hospitality
is a relative newcomer to this part of France.
We found the area and the landscapes so beautifulthat we created this “palace of the vines” 20 years ago.
Wellbeing is multi-faceted. Of course, wonderful

Do you think in business and in our personal lives we
all need to be focusing more on sustainability?
Having our properties, Les Sources de Caudalie in
Bordeaux and Les Sources de Cheverny in the Loire
Valley, in the middle of vineyards and the countryside has
made sustainability obvious for us for 20 years.
Of course, hospitality has to have a positive impact on
the local area.
For instance, we grow some vegetables on site, but wealso purchase the best products from local farmers andgrowers. We are in a partnership together, not in a classicalbusiness trade. We do not discuss price; they do notdiscuss quality. It allows us to serve the best meals to
our clients, who are willing to pay for this quality.
This collaboration makes our region lively andkeeps activity in our countryside. Attracting travellers
to a region can be sustainable, provided we avoid mass
tourism. This is the high-end approach that we must
adopt, especially in France.
How has the Covid-19 pandemic affected yourbusiness? On the one hand, it makes us all focus
more on wellbeing, but on the other it must makethings very hard for the hospitality sector...
This is an unprecedented crisis. All destinations and all
markets were impacted, some more strongly than others.
Travel and hospitality were really damaged, but thisTaking very
good care ofyour body,of your soul,is becominga preference
for a growing
number ofpeople. We cancall it wellness

P59

T H E W E A LT H R E P O R T 2 0 2 1This “reset” confirms that mass
tourism is unbearable for our planet
and not a strategy to follow“reset” confirms that mass tourism is unbearable for ourplanet and not a strategy to follow.
On one hand we think individual travel for leisure will
come back as soon as allowed, but on the other, corporate
travel could be strongly impacted. Mass tourism may also
face price increases as airlines will fly less, but become
more expensive. Experiential and wellbeing hospitality
could come out victorious from such a shock.
You have a young family. Has that inspired yourbusiness decisions at all, and have you thought
about whether your children might like to carry on
the family business one day?
From our observations, well brought up kids want tomake their own choices. We are trying to raise our twochildren to be able to make the best choices forthemselves. In terms of the business, we think that you
should find a balance between not forcing anyone totake over and letting the door stay open.
It’s also a question of timing. Too early is a
mistake, but so is too late. Personally, we develop ourcompany without considering this family aspect. Gettinginterest from the next generation would be a bonus, but
it’s not compulsory.
What plans do you have for the future? Are any hotels
or enterprises outside of France a possibility?
Our strategy remains the same – to build a hotel collectionin the vineyards. We have already Bordeaux and theLoire Valley. We will have to go around Champagne,
Burgundy, Alsace and Provence. We would love todevelop projects abroad in Tuscany and California, but
our focus is currently on France.

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DATA, CLASSIFIEDReal estate investors have the ability to tap into more data than ever before whenassessing investment decisions, but making sense of it is not always easy.
Geospatial analysis brings clarity to their armoury. Here, Knight Frank’s experts
examine changing global climate patterns W O R D S – F LO R A H A R L E Y G E O S PAT I A L A N A LYS I S – CA M E R O N M C D O N A L D

There are many ways toevaluate the potential risks
and opportunities relating toinvestment portfolios, and theimplications of climate change
are increasingly part of the mix. On thesepages the Knight Frank Geospatial Researchteam looks at the world through one particularclimate-related lens to illustrate the kind offactors that investors could consider.
We have split the Earth’s land mass into
more than 90,000 50 km squared blocks and,based on climate change simulations from theSpecial Report on Emissions Scenarios by theIntergovernmental Panel on Climate Change,
identified those areas that will see potential
localised climate change (as classified under
the Köppen-Geiger system) by 2050. We havealso highlighted those countries that rely
heavily on agriculture – 30%+ of GDP – andthat may therefore be more impacted, either
positively or negatively, by the change.
Some 20 million sq km, equivalent to morethan 13% of the world’s land surface, will seesome change and 5% will see a “major” change
in its primary climate classification. The map
opposite highlights the five biggest changes.
The implications of these shifts have thepotential to be vast. By way of example, thesecond largest change highlighted is from“polar” to “snow”. Where previously all
months of the year averaged temperatures
below 10°C, between one and three months
will now be above that threshold, giving theseformerly chilly regions a warming climate
for up to a quarter of the year.

If you have any questions about
geospatial analysis, please contact
cameron.mcdonald@knightfrank.com

Weather forecast
Biggest global climate change shifts forecast by 2050
Warm temperate to equatorial

Polar to snow

Snow to warm temperate

Warm temperate to arid

Equatorial to arid

Other change types

Countries where agriculture >30% of total GDP in 2020

Urban alteration
Out of the 100 cities we analyse in our City Wealth Index,
just under a quarter (23) will face some change in climateclassification. Barcelona, Guangzhou, Johannesburg,
Kiev, Monaco and Montreal will be the most impactedwith others, such as Denver, Toronto, Budapest, Oslo andDelhi seeing more limited change. The biggest shift will
be Kiev which sees the main classification go from snow
to warm temperate, meaning that the coldest month will
now average above 0°C rather than below. Likely awelcome change for the residents of Kiev, but manychanges are far less benign.
Created by Knight Frank Research using data from Esri, HERE, Garmin, FAO, NOAA, USGS,© OpenStreetMap contributors and the GIS User Community

P60

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T H E W E A LT H R E P O R T 2 0 2 1

Snow prospects

Farming futures

Although not one of the biggest shifts by land area it is worth noting a few
cases where the classification moves significantly from snow to arid. Thisis the case for a large band across Kazakhstan and Mongolia and for asignificant area of the great plains of southern Canada and the northern
US. This could indicate a lower amount of snowfall, and dramatic
temperature swings between day and night of as much as 20°C or more.

The climate classification of a large band across Africa is expected tochange from equatorial to arid. In countries that are heavily reliant on
agriculture, this could have a significant negative impact on output. Partof Ethiopia will switch from warm temperate to equatorial, which could
indicate more rainfall, but also more extreme weather conditions
including severe dry seasons.

Area of the world’s land mass affected by the five most significant climate shifts

1.6m sq km(1.1%)

1.4m sq km(1%)

1.2m sq km(0.8%)

605,163sq km(0.4%)

494,084
sq km(0.3%)

Warm temperate to equatorial

Polar to snow

Snow to warm temperate

Warm temperate to arid

Equatorial to arid

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P62The old andthe new
WORDS – VICTORIA ORMOND

We look at two property sectors, one long established and one fast emerging,to discover how they are being influenced by the global Covid-19
pandemic and what the angles are for private investors

The office sector remains
a popular investment
choice for now

The old…
Offices
The office sector has traditionally been astalwart of global real estate investment.
Indeed, in the last full year pre-pandemic,around 35% of total real estate investment
globally was channelled into office buildings.
Although the enforced surge in working
from home has led some to call time on theoffice, Knight Frank believes that the sector
will continue to play a prominent role inglobal real estate portfolio allocations.
Structural changes were already under way
in the office occupier market before Covid-19
and the virus will only accelerate these,
altering the form and function of the officeof the future and patterns of investment.
Despite the pandemic, the officesector remains a popular investment choicefor now, still contributing around 35%
of global real estate investment volumes
in 2020, based on provisional data from RCA.
To understand how the global allocationof the office sector could shift in the
future, as part of our Active Capital research
we used an augmented Black Litterman
model to predict how private equity – a leading

indicator of future market trends – allocations
to the office might change.
Our research suggested that the officesector could rebalance to around 21% ofprivate equity global holdings from 39%
by the late 2020s, with an increase inlogistics and non-traditional sectors suchas the private rental sector.
While the proportion of private
equity allocated to the office sector may
reduce, pointing to a possible reduction inallocations by other investors, our analysis
also suggests the overall size of the private
equity sector is likely to increase, cushioning
any reduction.
Despite the rebalancing, the office sector
looks set to remain a significant allocation
for private investors, particularly thoselooking for income-producing assets inlocations where innovation is helping tounderpin and support the real estate sector
by generating wealth and attracting talent.

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T H E W E A LT H R E P O R T 2 0 2 1

Image credits: facing page @scienceinhd; this page @rozetsky

As life sciences continues to grow, we predict theclustering tendency of the sector will amplify

The new…
Life sciences

For more insights, see our
new life sciences property report

One of the key inputs into our innovation-led
cities research is the degree of bio-medical
funding allocated to cities. In addition to thisbeing the subject of increased focus as a resultof the pandemic, it is also one element of thegrowing life sciences sector, an emerging
ecosystem that is ever more intertwined withtechnology and advanced data analytics.
Clusters range from the Oxford-CambridgeLondon “Golden Triangle” in the UK to Silicon
Valley and Boston in the US, as well as Tokyo in
Asia. They are particularly prevalent where there
are universities with strong research facilities
and close links with industry that can foster
monetisation and the spinning out of research.
The life sciences arena is rapidly growing
and evolving. We are seeing a continued shift

towards computational R&D and broader
convergence of technology and life sciences.
This is where we see potential for the old andthe new to come together, as the convergenceof science, data, computational innovation andtechnology drives increased occupation of
conventional office space in city centre locations,providing new opportunities for investment,
particularly in highly connected, flexible andinnovative workplaces.
As life sciences continues to grow, we
predict the clustering tendency of the sector will
amplify, particularly benefiting innovation-led
cities. Life sciences developments that cultivate
a collaborative ecosystem will command a
premium and existing life sciences sites areincorporating connectivity, place -making,community and purpose, wellbeing, the living
lab concept and sustainability into future
development plans. For the private investor, thisprovides a wealth of new opportunity.

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Outsidethe box

DATA B A N K

P64

Experts from across the Knight Frank network highlightalternative real estate opportunities that could beof interest to private investorsOne of the most exciting things about
the real estate investment market isits diversity. Some private investors
opt for the simplicity of an ovenready office block with a grade-A covenant,while others prefer a more involved projector something that resonates with their own
interests. For the latter, we asked our teams
around the world to nominate some ideas.

Farming carbon
As we mentioned earlier, environmental,social and governance (ESG) is now a driving
force in the property investment sector,
but the role of agricultural land in tacklingclimate change is often overlooked by those
not familiar with the industry. Once just seen
as somewhere to produce food, farmland isbecoming multi-functional, with the potential
to deliver a whole range of public goods fromflood mitigation to enhancing mental health.
However, the big win is the opportunity tosequester carbon as part of the battle against
climate change. This doesn’t mean stopping
farming completely or planting lots of trees(although that in itself is a great opportunity),
but farming in different ways. Tom Heathcote,our Head of Agri-Consultancy in the UK, forexample, is increasingly talking to his clients
about the benefits of regenerative agriculture.
By farming more sustainably carbon islocked into the soil, something that a growing
number of schemes are starting to measure
and reward. It is still a nascent market, butthere will be huge opportunities around theworld (Africa is already a focus) coming on
stream very soon as investment funds become
involved, says Tom.

Older offices
Despite the Covid-19-induced virtual stateof suspended animation that has driven
office leasing volumes to record low levels
as businesses reassess their occupational

Regenerative agriculture
is still a nascent market,
but there will be huge
opportunities aroundthe world coming on
stream very soon

strategies, record rents have still been achieved
throughout the pandemic for the very best
offices in top-flight cities such as London.
As Faisal Durrani, who heads our London
Commercial Research team, explains, thisbehaviour has been fuelled by a shortage ofbest-in-class office space and a restricted
development pipeline.
With 64% of office stock in London
completed prior to 2000, excluding
refurbishments over the past 20 years, theproportion of buildings that is of the quality
occupiers want is limited. And he anticipates
an intensification in competition around thissegment of the market.
The question is, will there be any relief
from the limited availability of prime space?
The answer, says Faisal, is “probably not”.
In fact, only around 12% of the speculative
development pipeline is likely to be delivered
to the original programme.
Given the laser-sharp focus on the best
offices by businesses, one of the greatest – andmore affordable – opportunities for private
investors in the London market lies in the
64% of stock built before 2000, reckons
Faisal, specifically older, “tired” buildings.
Although he says this may seem counterintuitive, by refurbishing or repositioning
these assets to a new, modern sustainable
standard, demand for space within previously
passed-over stock can be reinvigorated,

WORDS – ANDREW SHIRLEY

while at the same time saving these buildings
from a long road to obsolescence, or perhaps
even a change of use.
Indeed, new minimum energy efficiency
standards proposed by the UK government
for all commercial buildings in Englandand Wales by 2030 serve to highlight thecriticality of what’s at stake: the proverbial
shelf-life of a building.

Park life
Already of growing interest in his native
Australia (and the US and UK) prior to thepandemic, Kevin Coppel, Head of our AsiaPacific network, believes Covid-19 will only
enhance the attractiveness of trailer parks(which are becoming increasingly highend) as more people look for an affordable
bolthole in the country.
In February, prior to the pandemic, theFinancial Times ran a story headed “Whybig investors are buying up American trailerparks”. As an investment, they are usuallyhighly cash generative with consistent(often cash) income, limited capex and low
operating costs.
Locations that attract a mix of occupiers
provide stable income streams from longterm tenants and relatively premium rents
for holiday stays. In addition, their location,
often on the fringes of regional towns, canalso offer “land banking” for future
development opportunities.

Mass media
A final thought from Dr Lee Elliott, our Headof Occupier Research, who says studio space
could be at a premium given the rise of socalled techtainment giants like Netflix andAmazon Prime that are not just streaming
other people’s content, but creating vast
swathes of their own. As he points out,
it’s a trend that can play to either office orindustrial assets.

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T H E W E A LT HAt
R Ea
P Oglance
RT 2021

66

Bags of class
Handbags top our index for thesecond year running

68

Best sellers
2020’s top auction performers –T-Rex anybody?

70

Life through a lensPhotographer David Yarrow
opens up to us

76

Click and collectThree experts discussphotography markets

Prepared to be dazzled by the moststunning images and objects to ever appear
in an edition of The Wealth ReportW E A LT H

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P66

A mixed bag
		Covid-19 had a huge logistical impact on the global
marketplace for luxury investments in 2020. We report on how
prices weathered the storm

WORDS – ANDREW SHIRLEY

H

ermès handbags once again
topped the Knight Frank Luxury
Investment Index (KFLII) withprices rising by 17%, according
to our index compiler AMR. An established
online auction presence and the appetite
for relatively affordable luxury pick-me-ups
during the Covid-19 pandemic, particularly
in Asia where many bag collectors are based,
helped the asset class retain pole position.

Art
The art market, however, did not fare quite
so well with the auction-tracking AMR AllArt Index dropping 11% in 2020. But with somany factors impacting the market, there
was no single reason for the fall in averagevalues, says AMR’s Sebastian Duthy.
“For obvious reasons one of the biggest
changes was a shift towards private sales at
the major auction houses. The volume of all
sales that were publicly auctioned at Sotheby’sand Christie’s last year was down 26% and
46% on 2019, respectively. The problem wascompounded by the slowing in supply of
quality works as consigners who could afford
to wait preferred to sit it out at home.”
But, points out Duthy, there was still
plenty of enthusiasm from buyers. “With a newemphasis on home working, there was a surge
in demand from collectors sprucing up theirhomes. By the second half of the year, a newkind of auction sale had emerged, catering tothis need with eclectic showcases mixing art,
antiques and collectibles.”While traditional collectors’ tastes havebeen driven by art history, newer collectors
are just as likely to be turned on by what’s
trending on social media, and this shiftcontinued under lockdown, he adds. “Although
the number of individual artist records halved
last year compared with 2019, most of thewinners were young artists, increasingly
referred to as ‘Red Chip’.
“Tokyo-born Ayako Rokkaku, who
paints candy-coloured figures and rainbowlike smears, and the young American neosurrealist painter Emily Mae Smith, had sales
that tripled or quadrupled their high estimates.
Three works by Matthew Wong, who was barely
known before his premature death in 2019,broke through the million-dollar mark.
“Many of these ‘Red Chip’ artists havebecome so popular with collectors in Hong
Kong that auction houses are increasingly
pivoting their sales in this direction.”

Coloured diamonds
The coloured diamond market was also
somewhat stymied by the pandemic. “Thelogistical lockdown simply made it impossible
to conclude transactions in a timely manner,”says Miri Chen of the Fancy Color Research
Foundation. “It took much longer for sellers
to ship diamonds overseas, and for buyers
to transfer funds and to ultimately receive
custom-made items in a piece of jewellery.”Prices remained flat as a consequence,but this year could see a bounce.
“It seems that HNWIs can’t wait tocompensate themselves for 2020, celebrate
and buy the jewellery that they could notpurchase during Covid,” reckons Chen.

Fine wine
Scoring second place in KFLII, wine markets
experienced strong growth in 2020 following
a year of consolidation, says Miles Davis ofWine Owners, which pulls together the KnightFrank Fine Wine Icons Index.
“More than ever, this year has been abouttiming in the capital markets and, if you
got that wrong, the chances are you got it
expensively wrong. Not so for wine. Unlike
after the global financial crisis, the wine
market has held its nerve, merchants did
not mark down prices and the market has
been stable. Investors are about, and even
Bordeaux prices feel like they are firming up.”
Our index of viticultural icons, up 13%,
outperformed broader market stalwarts suchas Bordeaux first growths (+5.8%) in 2020,
but couldn’t keep up with the still rampaging
older vintages of super-Tuscans that saw
annual growth of 18%. Back vintages ofChampagne (+14%) were also notably strong.
Burgundy was up 11.5%.
While Covid-19 has disrupted luxury
markets in the short term, climate change isthe bigger influence for the wine trade, says
Davis. “Global warming is affecting classic
wine regions, Burgundy markedly so given
the sensitivity of Pinot Noir to excessive
heat. One merchant talked of 2019 being abenchmark vintage for the ‘New Burgundy’– in a warmer, richer mould. Perhaps now
is the time to load up on the more affordable
2014 and 2016 classic vintages, the likes ofwhich we may see only rarely in the future.”

Rare whisky
Unlike our fine wine tracker, the KnightFrank Whisky Index (KFWI), compiled for us
by Rare Whisky 101, lost some momentum
in 2020, dropping by 3.5%. “Against manyother investments that’s not such a disaster,
but compared with 2018’s circa 40% increase
the volatility of ultra-rare top-end whisky as
an investment is evident,” points out director
Andy Simpson.
But the broader market rode out the
pandemic in better shape, with Rare Whisky

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Objects of desire

12 months

The Knight Frank Luxury Investment Index Q4 2020*

Handbags

Wine

Cars

10 years

Watches

KFLII

Furniture

3%
17%

13%

6%

5%

108%

127%

193%

89%

Coloured
diamonds

Coins

4%
22%

Jewellery

-1%

-1%

-1%

72%

39%

67%

Sources: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags,

jewellery and watches), Fancy Color Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine

Rare whisky

129%

Art

-4%
-11%
71%

478%

Owners. Notes: *All data to Q4 2020 except furniture (Q2 2020). We have removed stamps from the index. The AMR

Watch Index has been updated to include collectable “sports” watches. The AMR Furniture Index now focuses on Art

Nouveau to mid-20th century furniture. KFLII is the weighted average of the change in value of each asset class over agiven period.

101’s Apex1000 Index increasing by almost
8% during 2020. “Most of the 100 single malts
within the KFWI are ultra-rare luxury bottles
and this part of the market saw more stress in
2020. Bottles selling at auction in the UK for
more than £5,000 have generally seen lessdemand and static prices compared with othersegments of the market,” explains Simpson.
A dip in values for market leader The
Macallan, which accounts for 15% of all
bottles sold on the UK’s secondary market,
also contributed, he adds. “There are 15 bottlesof The Macallan in the KFWI to represent
their market share and their prices fell by
12% on average throughout 2020. The
remaining 85 non-Macallan bottles increasedby almost 5%.”The performance of the KFWI offers
an interesting insight into the rare whiskymarket, reckons Simpson. “Harder economic
times show the Index underperforming thebroader asset class. But in 2018 when the
global economy was buoyant, the Index
outperformed. These ultra-high-end bottles

would appear to be a useful exaggeration of
the holistic market. With that in mind, maybe
now is a good time to buy.”

Classic cars
After a sluggish 2019, where the value of the
HAGI Top Index – which we used to track
the value of classic cars – fell by 7%, 2020
saw cars race back up to third place in
KFLII with growth of 6%. Ferraris revved up
particularly strongly, with the HAGI F Index
rising 14%.
For the collector and auction enthusiast,
however, last year was a bit of a damp
squib with many events cancelled asa result of the pandemic, and sales
postponed or moved online. “The market
went quiet during the first lockdown withsome forced selling evident early on, butalso some bargain hunting,” says HAGI’s
Dietrich Hatlapa.

“This was followed by individuals anddealers being very active throughout thesummer, with the auction market getting
into gear online to compensate for the lackof live sales,” he adds. “The pandemic may
well have made owners value their carseven more because they represent personal
freedom as well as a potential inflation
hedge in the future.”
Volumes should normalise further in
2021, with classic car events and live auctions
once again able to take place as the Covid
crisis becomes more manageable due tovaccines, predicts Hatlapa. “High quality cars
should achieve better prices again.”

See overleaf for a selection of the
top auction sales from 2020

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P68Top of the lots

Although no works of art broke the US$100 million barrier in 2020, auction
houses still achieved some eye-catching prices as they adjusted quickly to
the Covid-19 pandemic by launching innovative online platforms and new	sales formats. On this page we have curated a diverse selectionof some of last year’s top-selling and most noteworthy sales
C O M P I L AT I O N – A N D R E W S H I R L E YFrancis Bacon’s 1981

Triptych Inspired by the
Oresteia of Aeschylus,
fetched US$84.6 million
with S otheby ’s New
York in June, making it

the most valuable workof art to be auctioned
in 2020.

The 14.83 carat Spirit of the Rose, thelargest vivid purple-pink diamond to

appear at auction, sold for Swfr24.4

million (US$26.6 million) at Sotheby’s
Geneva in November.

Alberto Giacometti’s 1958 72cm bronze
Stan, one of the most complete T-Rex skeletons ever found, made a record
US$31.8 million at Christie’s October Evening Sale of 20th Century Art.

Femme Debout attracted a bid of US$12

million via Sotheby’s mobile app, ultimately
selling for US$13.7 million in London in July.

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T H E W E A LT H R E P O R T 2 0 2 1

A 1932 Bugatti Type 55 Super Sport Roadster was sold by Bonhams for
US$7.1 million – one of the highest classic car auction prices of 2020 – at
the March Amelia Island sales.

An Imperial green jadeite bead, ruby anddiamond necklace was sold by Sotheby’s for
HK$80.7 million (US$10.4 million) in July.

An engraved stainless steel Rolex Daytona Ref. 6263
owned by actor Paul Newman sold for US$5.5 million

at Phillips’ Racing Pulse sale in New York in December.

William Shakespeare’s 1623 Comedies,
Histories, & Tragedies, often referred to as
the “First Folio”, was sold by Christie’s New

York in October for US$10 million – an auction
record for a literary work.

An Hermès Himalaya Niloticus Crocodile
Retourné Kelly 25 broke the record for a

handbag sold at auction when it was soldA Chinese Yongzheng period (1722–1735)

in November.

in May – a record for Singapore auction

vase achieved S$6.9 million (US$4.9 million)

by Christie’s for HK$3.4 million (US$437,330)

house HotLotz and for any lot sold via online
marketplace thesaleroom.com.

Bonhams achieved arecord-breaking HK$6.2
million (US$795,000)

for a bottle of Yamazaki
55-year-old Japanese
whisky at its Fine Wine

& Whisky sale in August.

Sotheby’s sold an autographed1985 pair of basketball player

Michael Jordan’s game-worn
Air Jordan 1s for a record-breaking
US$560,000 online in May.

All images courtesyof Bonhams, Sotheby’s,
Christie’s, Phillips andthesaleroom.com
Francis Bacon ©The
Estate of Francis Bacon.
All rights reserved.
DACS 2021. Unlessotherwise stated,
all prices include
buyer’s premium.

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PA S S I O N SWorld				 in focus

DATA B A N KDavid Yarrow, one of the world’s best-selling photographers,
talks candidly to The Wealth Report about his career,
supermodels, football, politics, conservation and more

I N T E RV I E W – A N D R E W S H I R L E Y
I MAG E S – DAV I D YA R R O W

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A constant challenge in
my work is how to capture
the soul of a subject whileconveying a sense of place

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IPrevious page:
Mankind – South
Sudan, 2014
Top left: After Man– Kenya, 2020
Bottom left:
78 Degrees North– Norway, 2017
Bottom right:
Maradona –Mexico, 1986

t’s the week after the bad-tempered US
presidential election, and my trans-Atlantic
Zoom call with the photographer David Yarrow,
best known for his stunning black and white
images of wildlife, gets off to an inauspicious
start as we mouth silently at each other like Tweeting
politicians for what feels like an eternity.
When the technology eventually sorts itself out heapologises if he sounds tired; he’s recovering, he says,
from a “bit of a late night” following the Dallas openingof his latest collection of images, which was attended bymore than 200 guests. “It’s one of the cities where I sell
the most pictures,” he explains.
I momentarily feel bad for getting him out of bed
so early – it’s only 8am Dallas time – but the thought
quickly dissipates. With the UK languishing through its
second Covid-19 lockdown at the time, the idea of evenattending a party, let alone one carrying on into the earlyhours in another country, seems a forlorn hope.
But he sounds in pretty good form, especially as
he’s just recovered from a dose of Covid-19. As a proud
Scot, perhaps the adrenalin rush of his country’s footballteam qualifying for the delayed Euro 2020 finals – theirfirst major finals in 23 years – by winning a tense gameagainst Serbia on penalties the previous afternoon isstill kicking in.
“We were watching it in a bar and it got pretty stressfulwhen Serbia equalised right at the end of the game,”
he says. “I can get pretty passionate about football,so there might have been a few glasses smashed if
we’d have lost.”
Football, it would be fair to say, has played a pivotal
role in Yarrow’s career. Working for The Times, his
image of Diego Maradona holding aloft the FIFA World
Cup Trophy surrounded by a mass of jubilant fans afterArgentina won the 1986 tournament in Mexico remains
one of the game’s most iconic images – gaining an
added poignancy following Maradona’s recent death –and cemented his reputation as a photographer.
The man himself is quick to downplay things. “I got
lucky, it was one of the few decent photographs I took
at that tournament. I was never really a very goodsports photographer.” In fact, it wasn’t long before
he turned his back on photojournalism – “too many
photographers taking the same images and chasing too
little money, too few role models” – to embark on a new
career as a banker and fund manager in the UK and US.
Eventually, after surfing the latter stages of the firsttech boom and surviving 9/11 with his fund intact – hesold everything as soon as the first plane hit theTwin Towers – but seeing his marriage fall apart,

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disenchantment set in and he was lured back to the worldof photography, this time focusing on fine art prints soldthrough galleries.
Total acceptance didn’t come immediately, but a lastminute decision to fly to South Sudan, then in the midst ofa civil war, rather than spending Christmas Day at home
without his two children, proved a turning point. An
influential gallery owner in Palm Beach, having turned
him down five times previously, decided to snap up theunique and highly evocative shots of Dinka tribesmen
and their cattle that resulted from the trip. “I’m very
proud of those pictures,” he says when I ask him later
which of his images he’s most fond of.
Africa, its people and, in particular, its wildlife haveprovided a constant source of inspiration during thissecond phase of Yarrow’s photographic career. He spentmuch of 2020 there, criss-crossing East Africa’s borders.
“I think I’ve had to quarantine at least 12 times,” he says.
I ask him, given that we are fed an almost constantstream of bad news stories about Africa’s conservation
efforts, whether he feels as if he might be documenting
the last gasp of the continent’s seminal species. Despite
last night’s exertions, it’s the only time during our long
conversation that he sounds at all irritated.
“Yes, I do get fed up with it,” he says. “I don’t mean
with your question – you’re just reporting what you watch
or read – but with all the conservation NGOs who can’t
seem to say anything positive. If, say, you were supportinga cancer research charity, you’d want to hear about theirsuccess stories. The same goes for conservation – andthere are plenty of successes to shout about.”
He reels off a few examples: elephant populationsin Kenya’s Tsavo and Amboseli National Parks arerebounding strongly, while rhino poaching in the
country has largely been controlled; and Rwanda is
enjoying considerable success in nurturing its mountaingorilla population – 24 babies have been born in the past
year alone.
When I venture that much of the money to fund thesewins has come from tourist dollars and that the drop in

I got lucky, it
was one of the
few decent
photographs
I took at thattournament

international travel due to the pandemic could have aknock-on impact on conservation projects, he agrees andtakes aim again. “The people out there who are sayingthat the whole Covid-19 thing, that people flying less,has been good for the environment just don’t know what
they are talking about.”
In fact, throughout our interview, he’s not afraid
to discuss what he terms woke culture. When I ask
him what it was like to be in the US during the ugliest
presidential election in living memory and whether
photographing what one imagines would be a broadcross-section of the electorate – from Montana cowboys towest coast supermodels – over the course of the campaign
has given him an inkling of why the country has become
so polarised, it’s not Donald Trump he immediately
points the finger at.
“On the actual day of the election I was up in Montana
shooting with Cara Delevingne and this hyper wokenessthat’s coming out of places like California just doesn’t
resonate there at all. When it became clear the Democrats
had lost Florida and people started to think Trump could
win again, a small part of me was looking forward to how
upset it would make them [the wokes].”
Trump’s big mistake, he reckons, actually cameafter the election when he refused to concede. “I was at
Augusta taking some pictures of the golfer Gary Player
who’s a good friend. If anywhere in the US is going to be
Republican it’s a golf club, but everybody there was saying
he’d got it wrong.”
Despite the acclaim his work receives and themany millions of dollars he’s raised for conservationand children’s causes – he flew to Australia earlylast year to document the bush fires and raise funds
for the affected wildlife – Yarrow himself has had toendure some criticism of his style and methods. Notlong before our chat a minor social media storm had
erupted over a picture he’d taken in Amboseli featuring
a glamorous model standing in front of Craig, one of
Kenya’s 20 or so remaining tuskers – elephants with ivories
so long they churn the red African soil as they walk.

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You can make money fromart, but I still think it’s best
to buy something because
you love it

Top left: The Girlon a Train 2 – Cara
Delevingne, 2020
Top right: It is Onlya Matter of Time –Chicago, 2017
Bottom: Bushfire
Aftermath – Kangaroo
Island, 2020

Although he dealt with the criticism with good
grace – engaging with his accuser – he says he has had
to become more cautious about how his images might beperceived, and particularly any suggestion that he might
be objectifying his female models.
“We’re living in a different era to when the likes of
Helmut Newton took pictures of naked women sprawled
over a bed. That’s not acceptable now, and maybe withhindsight I should have anticipated the reaction thatshot in Amboseli would get, but I still believe that women
want to be photographed looking beautiful. Cara, Cindy[Crawford], they love the projects we collaborate on.”Wildlife photographers have also chided him for using
animals as props in some of his most famous images
such as the Wolf of Wall Street. But he’s quick to respondthat they are missing the point; he’s an artist who goesto great lengths to ensure every element of his images
is meticulously planned – often at great expense – not awildlife photographer “staring down a very long lens at
something in the distance”.
“If one of those photographers looks in my diaryand sees that I’m taking pictures of animals on Monday
and then doing a portrait of somebody on Wednesday,they might say, ‘oh, you’re obviously not a wildlife
photographer, I can only do animals, not people’. I just
don’t get it. Why shouldn’t you be able to do both, why
would you pigeonhole yourself?”
That’s not to say he doesn’t have huge empathy withthe wild animals he works with. Getting close up and using
his favoured wide-angled lenses means Yarrow’s images
often seem to offer more of a window into his subject’s
existence and their relationship with their environment.
“A constant challenge in my work is how to capture
the soul of a subject while conveying a sense of place.
It is a complex alchemy, but two of my idols, Spielberg
and Scorsese, have an innate ability to do this that istranscendental. What I also aim to create are images thatpeople want to spend a long time in front of. If you go to
see Rembrandt’s Night Watch you can easily look at it forhalf an hour. That’s what I want to achieve.”
It’s interesting that he names commercially successful
filmmakers as his heroes. I debate with Yarrow if perhaps
there is also a wider issue at play here. Building on thelessons learned during his successful banking career, he
has worked hard to create a brand and develop a profitablemodel for marketing and selling his prints – he even wrote
a paper, The Smart Way to Monetize Strong Photography.
Are there, I ask, some who cling to the idea of the povertystricken artist and feel that such self-promotion is not“the done thing”?

PA S S I O N SDATA B A N K

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He laughs. “I’m not sure how successful a banker
I really was, lucky perhaps, but you could be right. My
mother was an artist who thought like that. Not making
any money was almost something to be proud of.”
Speaking of money, photography is, to a certain
extent, the poor relation of the art world. Yarrow’s prints
sell for sizeable amounts and on the secondary market
they achieve good prices at auction – three have sold forover US$100,000 – but, given he is arguably the leading
exponent of his genre, they make somewhat less than anequivalently popular painter could expect to command.
The guide prices for an upcoming sale by Sotheby’sof works by Ansel Adams, one of the most influential
photographers ever, seem modest, I venture. And, unless
you are an Andreas Gursky, photographers are pretty
underrepresented in major art galleries. Does he feel, I
wonder, that photography is undervalued, or perhaps
not even considered as art by some people?
“Because we generally produce our works in editions
there is always going to be a sense that they aren’t
perhaps as unique as a painting,” he says. “Somephotographers haven’t always been completelytransparent either, which has created confidence issues.
“When somebody spends a lot of money on a
Hockney they know they are buying the only copy,” hecontinues. “I think my work sells for about the rightprice.” And is it an investment? “Most people who buy
my prints aren’t planning to sell them,” he hedges.
“You can make money from art, but I still think it’s best
to buy something because you love it.”
When it comes to the question of photography as art,
he doesn’t leap blindly to the defence. “It’s an interestingquestion. Are Annie Leibovitz’s portraits of celebrities
art? Is somebody taking a picture of a tennis player witha telephoto lens art? Are all of Andreas Gursky’s pictures
really art? I don’t necessarily think so.”But, as we wrap up the interview, what he does admit
is that he is still learning his craft. “There are animals
I know I could shoot better, but Covid has meant I’ve
had a lot more time to think about how I take pictures.
I think some of the ones I’ve taken this year have beenamong my best. I’m certainly a better photographer thanI was five years ago.” What’s his secret? “Be very hard on
yourself – and get close.”It’s also clear that despite mingling with supermodels
and travelling the world there’s always something new tolook forward to. “I’ve been invited by Willie Nelson totake some pictures at his home, which is very exciting– I’d like to take more pictures of men, I find them asinteresting as women – and I’m hoping to get back to the
Antarctic again soon.”
When the time comes to sign off, our Zoom callends as it started – with a glitch. Despite punching “endmeeting” the camera keeps rolling and I catch a jocularcomment from a colleague of Yarrow’s who’s obviously
been waiting for the interview to finish. It sounds
like that opening night in Dallas really was a very
good party indeed.

Discover the stories behind some ofDavid Yarrow’s most iconic images in
his new podcast, In Focus

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Snap happy

DATA B A N K

P76

INTERVIEWS – ANDREW SHIRLEY

Inspired by our earlier interview with David Yarrow, The Wealth Reportinvited three art experts to talk about photography and its place inthe world of collecting and luxury investments. Here are the highlights

OUR PANELLISTS
Gilles Dyan
Chairman, Opera Gallery
Laura Paterson
Head of Photography,
Bonhams

Should photographers be considered artists?
GD

LP

Dr Veronika Lukasova
Photographer, lecturer
and Director, Art Market
Research

VL

I absolutely believe that people who use photography
as a medium for creative expression should beconsidered artists, in the same way painters,
draughtsmen or sculptors are.
Since the beginning a battle has raged between
those who call photography a documentary medium
and others who call it art. It’s all about framing theimage, propping, choosing your subject-matter,much like any other art form – so yes, absolutely.
Definitely, but not every photographer is an artist,and not every visual artist who uses photography
calls him or herself a photographer.

How is the market for photography
performing in terms of demand and prices?
GD

LP

VL

At what point does a photograph become art?
GD
LP

VL

When it is an extension of the mind and heart of its
creator. The art is in the eye, not the device.
It’s what creates emotional resonance in the viewer
and that can mean very many different things todifferent people. In the 1970s there was a famous
row involving Ansel Adams, who argued that theMuseum of Modern Art in New York shouldn’t
exhibit the work of William Eggleston because it
was in colour.
When the intention of the maker is to create art.
Photographs by Richard Avedon and Robert
Mapplethorpe embody heightened ideas of beauty,
desire and perfection. Not surprisingly, they areamong the most sought after at auction.

What kind of photography is currently
attracting the most interest from collectors?
LP

VL

Does a photograph need to be considered art tobe collectable?
GD

LP

Head online
to watch ourpanellists
share more of
their insights

VL

There are many types of photography, such as
photojournalism, commercial photography andphotography that was meant to be art from the
beginning. All types are collectable nowadays.
People collect photojournalism and historicalphotographs that were never to be enjoyed in thesame way as a painting. Images of the Antarctic
voyages, for example, achieve enormous amountsof money at auction.
In November there was a huge sale of photographs
depicting space exploration by NASA and otheragencies. Many are taken by an unidentified
photographer or a probe; it’s the landmarks and thehuman history they depict that give them value.

Since Opera’s inception in 1994 we have definitely
noticed a rise in demand, not only for the globallyknown names we represent, such as Ellen vonUnwerth, but also for younger emerging artists.
As for the prices, some photographs are sold in theregion of six or even seven figures.
I think prices have been rather flat, except for
really exceptional objects. There was a sale ofphotographs by Ansel Adams in December, andthat did phenomenally well.
AMR’s Contemporary Photography 50 Index shows
a 21% fall compared with 2019, but that’s not to saythat everybody is under-performing. A photographby Richard Avedon sold for a record US$1.2 million
and Bill Viola, a conceptual artist and photographer,also had a good year.

People like Adams are completely blue chip. Also,side by side with the growth of the contemporary art
market, people want their photographs to be bigger,
and they want them to be largely decorative.
The art market reflects broader cultural shifts
Last year, for example, Zanele Muholi, a South
African visual artist who’s currently exhibiting at
Tate Modern here in London, set a record price of£28,000 for one of her photographs. There’s going
to be a continual rise and recognition of artists thatare currently under the radar.
Are you seeing any changes in the type of
people who collect photography?

GD

LP

We have noticed over the years a growing interestin photography from our collectors in general anda lot of crossover buyers from other mediums. Thisis probably due to all the fabulous photography
exhibitions in museums, galleries and fairs.
The kind of collectors are changing, and more
traditional collectors are changing the way they buy.
In the past, online auctions for serious collectors
were thought of as a bit of a joke. New clients,
younger clients, are quite happy to buy at high levels
online. So I think the market is spreading.

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Databank

The numbers behind The Wealth Report

THE WEALTH REPORT ATTITUDES SURVEYWEALTH TRENDS
On average, what percentage of your clients derive the majority of their wealth from the following sources?
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Own business

47%

56%

44%

47%

63%

59%

34%

51%

44%

49%

Investment portfolio

19%

17%

27%

24%

23%

16%

31%

15%

16%

21%

Salaried employment

15%

14%

13%

13%

5%

11%

18%

25%

16%

14%

Mix

15%

10%

10%

9%

8%

7%

13%

5%

16%

10%

Other

4%

4%

6%

6%

1%

7%

5%

4%

9%

5%

Regional average

On average, how did your clients’ total wealth change in 2020? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Increased significantly (above 10%)

3%

23%

16%

11%

0%

15%

36%

7%

11%

14%

Increased marginally (below 10%)

26%

30%

47%

38%

29%

29%

36%

39%

40%

35%

Remained the same

16%

25%

25%

31%

43%

23%

23%

29%

33%

27%

Decreased marginally (below 10%)

33%

16%

11%

16%

21%

25%

0%

11%

10%

16%

Decreased significantly (above 10%)

22%

6%

2%

3%

7%

8%

5%

14%

6%

8%

Regional average

On average, how do you expect your clients’ total wealth to change in 2021? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Increase significantly (above 10%)

15%

34%

21%

16%

14%

31%

32%

18%

14%

22%

Increase marginally (below 10%)

49%

46%

60%

52%

43%

38%

55%

46%

51%

49%

Remain the same

15%

12%

16%

29%

43%

29%

9%

21%

22%

22%

Decrease marginally (below 10%)

17%

6%

2%

3%

0%

2%

5%

14%

11%

7%

Decrease significantly (above 10%)

3%

1%

2%

0%

0%

0%

0%

0%

2%

1%

What are the three biggest issues affecting their wealth that will most worry your clients in 2021? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Ongoing disruption by Covid-19

88%

82%

89%

74%

64%

79%

82%

86%

76%

80%

Domestic government policy

55%

46%

51%

45%

64%

40%

50%

46%

39%

49%

Tax issues

31%

35%

26%

58%

57%

25%

50%

43%

52%

42%

Geopolitics (trade wars, etc.)

22%

44%

46%

18%

21%

46%

27%

68%

18%

35%

Wealth transfer to the next generation

19%

35%

47%

30%

36%

25%

18%

11%

29%

28%

Brexit

4%

3%

0%

23%

0%

6%

5%

4%

45%

10%

Impact of rising wealth inequality

7%

4%

5%

8%

14%

10%

18%

0%

6%

8%

Civil unrest

11%

4%

0%

8%

14%

2%

9%

0%

4%

6%

Armed conflict

1%

1%

0%

6%

7%

4%

0%

4%

0%

3%

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What are the three biggest issues affecting their wealth that will most excite your clients in 2021? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

86%

89%

89%

80%

100%

50%

44%

61%

47%

14%

23%

23%

25%

24%

50%

Domestic government policy

33%

31%

26%

29%

36%

Wealth transfer to the next generation

15%

29%

28%

26%

50%

Opportunities arising from the ESG agenda

17%

20%

40%

21%

14%

Tax issues

12%

18%

7%

33%

29%

Brexit

3%

3%

0%

5%

0%

New post-pandemic
investment opportunities
Technological disruption as an opportunity
Improving geopolitics

Middle East

North America

Russia & CIS

UK

Regional average

79%

95%

52%

64%

89%

79%

87%

43%

44%

35%

14%

61%

20%

47%

33%

9%

11%

19%

8%

18%

11%

25%

13%

32%

11%

25%

10%

14%

21%

14%

8%

5%

11%

23%

31%

25%
23%
22%
18%
6%

What percentage of your clients are planning to apply for a second passport or new citizenship? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

25%

24%

8%

24%

41%

28%

14%

32%

18%

24%

Do you expect your clients to reduce their international travel as a result of Covid-19? % respondents who said yes
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

For business

80%

89%

86%

89%

79%

81%

90%

75%

91%

For leisure

88%

91%

84%

83%

71%

78%

90%

89%

80%

84%

84%

Do you expect your clients to be more or less likely to use private aviation as a result of Covid-19? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

More likely

45%

32%

42%

51%

46%

52%

50%

71%

33%

Less likely

16%

29%

9%

14%

15%

13%

9%

11%

14%

47%

No change

38%

38%

49%

35%

38%

35%

41%

18%

53%

38%

Regional average

15%

Are your clients more or less likely to send their children overseas for their university education due to Covid-19? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

More likely

30%

8%

2%

14%

29%

13%

18%

11%

2%

Less likely

26%

41%

64%

45%

14%

19%

32%

29%

23%

No change

44%

51%

34%

42%

57%

67%

50%

61%

74%

53%

Regional average

14%

33%

Are your clients more or less likely to send their children overseas for their secondary education due to Covid-19? % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

More likely

12%

6%

2%

3%

7%

12%

9%

7%

0%

Less likely

36%

52%

63%

58%

36%

37%

41%

50%

30%

No change

52%

42%

35%

38%

57%

51%

50%

43%

70%

6%

45%
49%

Thinking of the next generation, do you agree with the following statements? % respondents who said yes
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

My clients reassessed their attitudes tosuccession planning during the pandemic

67%

65%

54%

42%

64%

62%

75%

36%

51%

57%

My younger clients (below 40)
have different attitudes towards
their property investments

76%

75%

65%

57%

86%

77%

73%

68%

57%

70%

PASSION INVESTMENTS
Respondents who said their clients’ philanthropic activities have increased as a result of the pandemic
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

56%

45%

26%

45%

29%

63%

67%

26%

50%

45%

Respondents who said their clients are becoming more interested in the following causes…
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Healthcare/disease prevention

91%

92%

77%

81%

85%

81%

95%

79%

66%

Conservation/the environment

75%

78%

72%

66%

46%

71%

85%

32%

75%

83%

Education

71%

70%

41%

50%

64%

70%

67%

43%

46%

67%

58%

P79

T H E W E A LT H R E P O R T 2 0 2 1

Respondents who said their clients have increased their spending on tangible investments of passion, such as art and classic cars during the pandemic
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

10%

21%

35%

21%

29%

18%

29%

17%

28%

23%

Regional average

Most popular investments of passion among clients 1 = most popular
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Art

2

2

1

1

1

1

1

1

Classic cars

4

5

2

2

2

3

1

2

2

4

6
3

4

6

3

4

3

4

5

2

5

6

8

7

7

9

6

10

6

10

8

8

10

1
5

4

Jewellery3

3

5

Rare whisky

6

6

9

6

7

7

Furniture

7

8

8

5

8

Coloured diamonds

8

9

6
7

9

7

5

Coins

10

10

8

9

5

10

8

7

10

7

7

9

8

10

Handbags

9

1

3

Watches
Wine

4

3

3

5

3
3
7

5

2

8

1

2

3
4

5
6
7

9

RESIDENTIAL PROPERTY
On average, what proportion of your clients’ wealth is directly allocated to their….
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Principal and second homes?

20%

17%

22%

14%

13%

17%

24%

19%

20%

18%

Property investment portfolio?

23%

18%

24%

26%

22%

23%

20%

16%

16%

21%

What proportion of your clients…
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Bought a new home in 2020?

15%

18%

17%

20%

23%

24%

27%

18%

21%

Are planning to buy a new home in 2021?

26%

24%

16%

31%

32%

31%

29%

20%

25%

20%
26%

Due to Covid-19, are your clients more likely to want to buy a house in a… % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Resort/coastal area?

35%

27%

73%

57%

77%

48%

77%

50%

55%

Rural location?

41%

16%

55%

52%

46%

40%

52%

42%

75%

56%

City or urban area?

36%

32%

23%

10%

7%

12%

27%

23%

6%

Ski destination?

9%

5%

9%

26%

0%

10%

19%

8%

10%

47%

20%
11%

The main reason for purchasing a new home is... % respondents
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Upgrading the family’s main residence

20%

28%

47%

30%

25%

17%

40%

24%

30%

29%

A new holiday home

15%

21%

32%

21%

17%

38%

20%

20%

23%

23%

Moving permanently to a new country
or territory

23%

19%

4%

13%

50%

17%

10%

32%

13%

20%

Tax reasons

3%

7%

4%

20%

0%

4%

10%

8%

16%

8%

Downsizing or retirement

14%

5%

8%

8%

0%

0%

15%

4%

3%

6%

Education

10%

11%

0%

2%

0%

6%

0%

4%

3%

4%

Regional average

When choosing a new home which attributes are most important to your clients? 1 = most popular
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Outdoor space/nearby access

5

4

2

1

1

1

1

1

1

Offices within home/development orclose by

1

1

1

1

3

2

6

2

7

4

2

Transport links

2

2

6

3

3

4

3

4

2

Leisure facilities/amenities within home/development or close by

3

6

7

3

2

5

2

4

3

7

4

Access to quality healthcare

3

3

4

7

7

3

5

2

5

Internet connectivity/technology

4

5

5

6

6

5

6

6

3

5

Air quality

7

6

7

5

3

7

7

5

6

6
7

T H E W E A LT H R E P O R T 2 0 2 1

P80

INVESTMENT PROPERTY

In terms of your clients’ property portfolios, please indicate the percentage allocated to each property type
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Residential private rented sector (PRS)

26%

20%

27%

31%

16%

18%

18%

16%

34%

Offices

19%

23%

17%

24%

16%

24%

13%

25%

17%

Retail

12%

7%

11%

8%

12%

8%

6%

12%

8%

Development land

6%

7%

7%

6%

15%

11%

8%

12%

3%

Hotels and leisure

7%

7%

3%

9%

6%

12%

12%

9%

6%

Industrial

5%

5%

14%

2%

6%

7%

8%

4%

5%

Logistics

3%

4%

3%

7%

11%

5%

6%

7%

3%

Retirement

7%

9%

1%

4%

0%

2%

6%

4%

1%

Agricultural

4%

2%

5%

1%

6%

1%

2%

1%

5%

Infrastructure

2%

2%

4%

1%

2%

0%

6%

1%

1%

Education

3%

5%

1%

0%

2%

3%

2%

1%

3%

Student housing

3%

2%

0%

1%

0%

3%

4%

3%

4%

Healthcare

2%

4%

1%

1%

0%

3%

3%

3%

2%

Regional average
23%

20%
9%

8%

8%
6%

5%
4%

3%
2%
2%

2%

2%

What percentage of your clients are planning to invest in commercial property in 2021?
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

25%

22%

25%

29%

23%

23%

30%

21%

27%

25%

Regional average

Which of these sectors are becoming of more interest to your clients? % respondents (respondents chose up to three sectors)
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Residential private rented sector

29%

21%

26%

48%

43%

33%

36%

18%

37%

Logistics

10%

23%

19%

39%

43%

33%

27%

36%

20%

32%

28%
24%

Development land

26%

16%

23%

20%

43%

23%

18%

21%

27%

Offices

19%

32%

9%

15%

21%

13%

18%

14%

17%

Industrial

15%

11%

51%

5%

21%

19%

18%

4%

13%

Healthcare

24%

30%

19%

15%

0%

25%

23%

7%

13%

Retirement

21%

26%

11%

14%

0%

15%

18%

7%

15%

Hotels and leisure

11%

11%

4%

23%

21%

13%

14%

11%

13%

Agricultural

18%

3%

26%

3%

7%

15%

18%

4%

13%

Infrastructure

12%

9%

18%

9%

14%

8%

18%

7%

7%

Data centres

13%

13%

11%

11%

7%

23%

0%

14%

7%

Retail

20%

10%

9%

2%

14%

4%

9%

25%

4%

Student housing

17%

6%

0%

9%

7%

6%

9%

11%

12%

Education

6%

14%

4%

2%

7%

8%

5%

7%

2%

6%

18%
17%

17%

14%

13%
12%
11%

11%

11%
9%

ESG-focused property investments % respondents who said yes
AfricaAsia

Australasia

Europe (excl UK)

Latin America

Middle East

North America

Russia & CIS

UK

Regional average

Are your clients more interested in ESGfocused property investments than they
were 12 months ago?

42%

46%

60%

46%

38%

33%

65%

9%

51%

43%

Do your clients feel they have all theinformation they require to assess ESGrelated investments?

30%

20%

36%

53%

36%

27%

70%

35%

43%

39%

The Attitudes Survey is based on responses from more than 600 private bankers, wealthadvisors and family offices representing combined wealth of more than US$3.3 trillion.
The survey was taken during October/November 2020. For selected country-level data
please email siobhan.leahy@knightfrank.com
If you’d like to participate in next year’s survey do please get in touch. All respondents
receive the full country-level dataset.

Head online for methodology, billionaire
populations and city-level data

P81

T H E W E A LT H R E P O R T 2 0 2 1

THE KNIGHT FRANK WEALTH SIZING MODELHNWI populations (US$1m+)% changeUHNWI populations (US$30m+)% change

Country/territory

2015

2019

2020

2025

2019–20

2015–20

2020–25

2015

2019

2020

2025

2019–20

2015–20

2020–25

World

42,631,231

52,946,429

48,505,781

68,185,442

-8%

14%

41%

392,038

509,252

521,653

663,483

2%

33%

27%

Africa248,908

251,511

231,309

290,079

-8%

-7%

25%

3,330

3,127

3,270

4,361

5%

-2%

33%

Asia

7,885,560

12,073,601

10,421,021

15,221,529

-14%

32%

46%

65,350104,570

116,697

161,878

12%

79%

39%

Australasia

541,129

699,644

663,986

928,071

-5%

23%

40%

3,476

4,790

5,263

6,689

10%

51%

27%

Europe11,726,729

15,334,637

14,222,839

21,257,622

-7%

21%

49%

109,118

150,541

151,665

185,860

1%

39%

23%

Latin America

1,320,373

1,341,985

1,105,343

1,481,842

-18%

-16%

34%

14,288

16,77014,50418,060

-14%

2%

25%

Middle East

812,349

1,259,070

1,117,232

1,445,362

-11%

38%

29%

22,872

33,23629,88037,241

-10%

31%

25%

North America

19,601,000

21,288,941

20,173,329

26,794,070

-5%

3%

33%

163,727

183,239

190,085

236,297

4%

16%

24%

Russia & CIS

495,183

697,040

570,722

766,867

-18%

15%

34%

9,877

12,97910,28913,097

-21%

4%

27%

Argentina

127,855

95,22985,583106,255

-10%

-33%

24%

1,147

861

881

1,045

2%

-23%

19%

Australia

134,050

167,064

176,862

215,075

6%

32%

22%

1,995

2,818

3,124

3,760

11%

57%

20%

Brazil

447,933

466,032

373,433

481,158

-20%

-17%

29%

5,653

5,845

5,140

6,316

-12%

-9%

23%

Canada952,632

1,116,925

1,102,765

1,404,006

-1%

16%

27%

7,890

9,259

10,025

12,342

8%

27%

23%

Chinese Mainland

3,735,100

7,195,011

5,843,228

9,105,036

-19%

56%

56%

29,771

60,83270,426103,042

16%

137%

46%

Egypt

30,00927,58630,35538,630

10%

1%

27%

608

504

583

711

16%

-4%

22%

France1,474,054

2,555,336

2,554,936

3,608,769

0%

73%

41%

12,752

17,11915,503

23,692

-9%

22%

53%

Germany

1,837,596

2,971,934

2,840,102

4,121,842

-4%

55%

45%

19,88927,60728,39637,554

3%

43%

32%

Greece107,235

119,002

95,917

151,363

-19%

-11%

58%

865

1,013

678

958

-33%

-22%

41%

Hong Kong SAR

205,144272,287

279,090375,632

2%

36%

35%

3,408

4,447

5,042

6,341

13%

48%

26%

Hungary

27,77031,67429,71039,842

-6%

7%

34%

175

226

242

313

7%

38%

30%

India

280,378

378,898

350,050

611,503

-8%

25%

75%

5,428

6,993

6,884

11,198

-2%

27%

63%

Indonesia

14,73023,594

21,43045,063

-9%

45%

110%

516

730

673

1,125

-8%

30%

67%

Ireland195,554

233,836

239,466

326,430

2%

22%

36%

2,035

2,253

2,560

3,230

14%

26%

26%

Italy

1,367,740

1,451,979

1,214,736

1,979,311

-16%

-11%

63%

10,886

10,747

10,441

14,721

-3%

-4%

41%

Japan

2,184,691

2,463,205

2,228,305

2,682,897

-10%

2%

20%

10,84013,557

14,75517,004

9%

36%

15%

Kenya

3,321

4,235

3,323

4,840

-22%

0%

46%

89

106

90

110

-15%

1%

22%

Malaysia

15,226

17,936

16,442

22,354

-8%

8%

36%

515

628

606

801

-3%

18%

32%

Mexico252,282271,676

241,152

318,011

-11%

-4%

32%

3,426

3,470

3,287

4,140

-5%

-4%

26%

Monaco

6,331

7,571

8,096

10,474

7%

28%

29%

145

179

184

222

3%

27%

21%

New Zealand

158,782

226,134

208,384359,251

-8%

31%

72%

1,450

1,936

1,904

2,886

-2%

31%

52%

Nigeria

56,44453,021

43,57152,029

-18%

-23%

19%

821

855

867

992

1%

6%

14%

Philippines

14,423

14,57013,93618,989

-4%

-3%

36%

542

524

489

658

-7%

-10%

35%

Poland48,92264,573

68,146130,461

6%

39%

91%

608

720

878

1,418

22%

44%

61%

Portugal

104,035

126,104

104,374

130,052

-17%

0%

25%

891

1,106

841

983

-24%

-6%

17%

Romania

24,83633,45925,84834,486

-23%

4%

33%

215

212

290

379

36%

35%

31%

Russia361,899

513,189404,882

557,988

-21%

12%

38%

6,721

9,015

8,015

10,346

-11%

19%

29%

Saudi Arabia

178,023

281,003

239,198

287,115

-15%

34%

20%

2,146

6,402

7,020

8,416

10%

227%

20%

Singapore

201,157

275,903244,700

387,836

-11%

22%

58%

2,731

3,387

3,732

4,888

10%

37%

31%

South Africa

50,823

52,10944,60563,404

-14%

-12%

42%

910

768

742

977

-3%

-18%

32%

South Korea

947,423

1,082,684

1,086,328

1,620,536

0%

15%

49%

6,349

6,918

7,354

9,985

6%

16%

36%

Spain

695,667

1,157,662

886,014

1,399,670

-23%

27%

58%

5,428

6,861

5,938

8,233

-13%

9%

39%

Sweden420,388598,488590,539

864,502

-1%

40%

46%

4,132

4,712

5,243

8,350

11%

27%

59%

Switzerland

714,531760,930

773,076874,540

2%

8%

13%

6,756

6,907

7,553

8,301

9%

12%

10%

Taiwan103,031108,144

110,369

124,056

2%

7%

12%

1,888

1,951

1,996

2,248

2%

6%

13%

Tanzania

3,106

4,002

3,700

4,192

-8%

19%

13%

75

95

84

92

-12%

11%

10%

Thailand

23,93232,30331,35736,330

-3%

31%

16%

687

1,028

990

1,140

-4%

44%

15%

Turkey172,239

145,810

114,821

187,095

-21%

-33%

63%

1,957

1,789

1,429

2,045

-20%

-27%

43%

Uganda

798

1,098

1,138

1,633

4%

43%

43%

10

15

16

20

7%

60%

25%

UAE

171,015

193,641

155,929

205,664

-19%

-9%

32%

1,818

1,663

1,305

1,592

-22%

-28%

22%

UK

2,515,426

2,427,847

2,165,040

3,809,638

-11%

-14%

76%

17,877

16,491

16,37022,741

-1%

-8%

39%

US

18,648,368

20,172,016

19,070,564

25,390,064

-5%

2%

33%

155,838

173,980

180,060

223,955

3%

16%

24%

Vietnam

15,453

20,645

19,49125,812

-6%

26%

32%

188

405

390

511

-4%

108%

31%

Zambia

437

877

712

1,001

-19%

63%

41%

12

12

10

14

-17%

-17%

40%

T H E W E A LT H R E P O R T 2 0 2 1

P82

OUR GLOBALNETWORK488 OFFICES ACROS S 57 C OUNTRIESAND TERRITORIESKnight Frank has 488 offices across 57 countries
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our dedicated Private Office network, making us
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N E W YO R KSANFRANCISCO

T

here is a human element in the worldof property that is too easily overlooked.
At Knight Frank, we aim to partner you in all
your property endeavours. We believe personal
interaction is a crucial part of ensuring thatevery client is matched to the property that best suits theirneeds – be it commercial or residential.
As a partnership that has now been established for 125
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and impartiality of the advice we can provide. Indeed, thisprinciple of partnership extends to our clients, too. We havealways prided ourselves on our tradition of nurturinglong-standing relationships across the world, many stretchingback for decades.

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Even in a world of instant global connections there aregateway cities, where we believe we are best placed todeliver for our clients and achieve the greatest impact.

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T H E W E A LT H R E P O R T 2 0 2 1

UNITED KINGDOMEUROPE

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SINGAPOREPEOPLEPEOPLE152

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21

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P84

Final wordA N D R E W S H I R L E Y, E D I T O R

T

his is the thirteenth edition of
The Wealth Report I’ve edited.
It seems appropriate, therefore,that the experience has been, if
not unlucky, somewhat unusual.
D ue to C ovid-19 lo ckdowns andmovement restrictions in the UK, officevisits have been rare. For the first time I’ve
not been able to interview anybody face
to face and I haven’t had in-person meetings
with any of the amazing editorial anddesign team that pull the report together.
Have I felt disconnected from mycolleagues during the process? Of course,
I’ve missed seeing them, but thanks to thejoys of Microsoft Teams we’ve probably
spoken more than ever before and in somesenses worked even more closely together.
Arguably, it’s made us more efficient.
Has the report itself suffered? Personally,
I don’t think so – I hope you agree. I am very
proud of it, and of the team. You could say
it’s the perfect advert for the great workingfrom-home experiment many of us havebeen involved in for the past 12 months.
As a result of similar successes, somehave argued that both the office and businesstravel are dead. I disagree. While technology
can replicate process, it can’t replace
everything. It can’t, for example, generate
those chance interactions with people
that can inspire you and lead to new ideas
and ways of thinking.
If I hadn’t attended the Kampala
launch of The Wealth Report last year,
for example, I wouldn’t have sat next toVusi Thembekwayo and seen how theaudience hung off his every word when he
was invited to give an impromptu speech.
And I certainly wouldn’t have got in touch
and asked to interview him for this year’s
report – via Teams, of course.
In the overall scheme of life it’s asmall thing, but my interview could be
another person’s unexpected investment
opportunity or unforeseen career-changing
event. As he recounts, the photographer
David Yarrow, who I also talked to for thisedition, has had a few of those.
I hope as the pandemic is beaten andnormality begins to return we don’t lose theurge to travel, and that for the next editionof The Wealth Report we can once moresafely all meet up in person.

Scan for regular
updates fromThe Wealth Reportthroughout the year

P85

T H E W E A LT H R E P O R T 2 0 2 1

For all property enquiries
please contact
Rory Penn+44 20 7861 1150
rory.penn@knightfrank.com

The Wealth Report is just one in a seriesof publications and reports publishedby Knight Frank throughout the year.
Visit the URL below to receive ourpublications, either by email or post:

For all research enquiries
please contact
Liam Bailey+44 20 7861 5133
liam.bailey@knightfrank.com

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F I N E S T

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T H E

W O R L D

15/12/2020 11:38

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