Reversing a 2022 decline, the number of ultra-high-net-worth individuals worldwide jumped 4.2% in 2023, according to the latest Wealth Report from London-based property consultancy Knight Frank.
The annual report, released Wednesday, defines “ultra-high-net-worth” as having a net worth of at least US$30 million. Of the total 626,619 ultra-wealthy individuals―up from 601,300 a year earlier―the largest proportion comes from North America, with a 7.2% increase over 2022, the report says.
“The U.S. story here is massive,” says Liam Bailey, global head of research at Knight Frank and the report’s editor. “Not only has the U.S. been a huge force in wealth creation, but our forecast over the next five years sees a third of newly wealthy people coming from the U.S. as well.”
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Bailey attributes the reversal to “a revival in asset pricing, led by equities, gold, Bitcoin, and even residential properties.”
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“The big story,” Bailey says, “is that wealth creation is back.”
By region, the Middle East has the second largest population of ultra-wealthy, up 6.2%, with Africa in third place, up 3.8%. Only Latin America saw a decline in wealthy people, with a 3.6% drop. By country, Turkey leads the rankings with a 9.7% expansion of the ultra-wealthy population, followed by the U.S. at 7.9%, India at 6.1%, South Korea at 5.6%, and Switzerland at 5.2%.
The increasingly global flow of capital may account for some shifts, Bailey says. “Money from Latin America has moved into U.S. markets like Miami. And while markets like London and New York still attract the attention of wealthy property buyers, we’re seeing a shift to new markets,” he says.
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Dubai “has been a standout as a new global hub in terms of where the world’s wealthy want to be and invest. Hubs like Miami and Milan are also trying, quite successfully, to attract wealth.”
The evolution of those markets creates a virtuous cycle where wealthy investors see “an opportunity play” to invest in commercial real estate and infrastructure, Bailey says.
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“Wealthy people need services in locations they’re seeking,” he says, pointing to the lack of high-quality schools in Miami—something an influx of wealthy people could seize on and remedy.“And the value correction in commercial real estate, with more to go, means there are major openings for well-capitalized investment to get into areas of redevelopment and repurposing of buildings.”
The increasing mobility of wealth also means governments are moving to “balance impacts of those money flows,” Bailey says. “In the last 12 months, Singapore has increased stamp duties on foreign property buyers. We’ve seen the same pattern in Canada, with a foreign-buyer ban. Portugal’s foreign-investor scheme, which encouraged wealthy people to buy real estate, has shifted to other investments,” including company creation, arts, and research.
“It’s an attempt to balance inflows of wealth with the needs and requirements of local residents. Wealth can be a controversial topic, and governments will always try to balance inequality in some way,” Bailey says.
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At the same time, wealth expansion doesn’t necessarily come at the expense of the less affluent—it can create “genuine economic growth,” he says.
By 2028, the Knight Frank Wealth Report predicts, the number of ultra-wealthy individuals worldwide will increase by 28.1%. Asia will lead the way, Knight Frank says, with high growth in India (50%), the Chinese mainland (47%), Malaysia (35%), and Indonesia (34%). Europe and Latin America are “expected to be the weakest regions,” the report says.
