Ultra-high net worth (UNHW) individuals are buying up luxury homes in the EMEA (Europe, Middle East and Africa) region which offers major purchasing and investment opportunities, a report said.

The report “Europe, Middle East and Africa Luxury Residential Real Estate Report For 2015”, by Wealth-X, global authority on wealth intelligence and the Sotheby’s International Realty brand, provides insight into the EMEA region’s luxury residential real estate market and identifies purchasing and investment opportunities for UHNW individuals looking to diversify their holdings.

The report shows that the UHNW Residential Real Estate index tracked by Wealth-X hit a new record high of 112.1 in the first quarter of 2015, up nearly four per cent from the fourth quarter of 2014, and seven per cent from the first quarter of 2014. This highlights the strength of the global luxury real estate sector on the back of demand by UHNW individuals.

The index takes into account the full range of luxury residential properties that are owned by the world’s wealthiest individuals. Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively own nearly US$3 trillion of real estate, equal to 10 per cent of their net worth.

Key findings:

•    The EMEA region offers purchasing and investment opportunities, particularly in Madrid (Spain), Dubai (UAE) and Cape Town (South Africa) - three EMEA cities featured in the report - where luxury properties and strong lifestyle considerations may appeal to UHNW buyers.

•    London remains the top real estate hub for the EMEA region. The city’s price per sq ft ($3,103) is nearly four times that of Dubai, and six and nine times more than Madrid and Cape Town respectively.

•    One-third of all premium London properties for sale (homes valued above $1 million) are worth more than $10 million. By comparison, Dubai has only eight per cent of its luxury properties listed in the super prime range above $10 million.

•    The less expensive price per sq ft for premium real estate in Cape Town generally leads to larger houses. A luxury property in the South African city has six bedrooms on average – higher than Madrid and Dubai, the two other cities profiled in the report.

Wealth-X president David Friedman said: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this second luxury real estate report for 2015.   Because it touches upon several key elements in an ultra-affluent individual’s life, including lifestyle, investments and family, luxury residential real estate encapsulates a core part of their identity. As their wealth continues to grow, so will their investment fuelled by flight to safety from less geopolitically stable geographies.”

Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates, said this joint report was designed to provide a deeper understanding of the UHNW consumer, specifically in the EMEA region.

“The research shows that trends and the economic climate in some EMEA countries are stimulating alternative investments such as real estate in these local markets,” he said.  “These opportunities are exciting and we are proud to be able to provide an in-depth look at them.” – TradeArabia News Service