THE WEALTH & LUXURY REPORT

THE EXPANDING WEALTH LANDSCAPE

GLOBAL GROWTH OF UHNWI'S AND THE LUXURY MARKET

The global luxury market exceeded a record £1.25 trillion. Global luxury goods market to reach £440-474 billion by 2030.

The number of UHNW is 626,619 (North America, Middle East). 22% of UHNWIs are expected to invest in residential properties.

The number of wealthy individuals globally is expected to increase by 28.1% by 2028.

By 2030, Gen Z will account for 25-30% of luxury market purchases, while millennials will account for 50-55%.

London is home to 227,000 millionaires, making it the wealthiest city in Europe.

(Bain)(Bain)(Knight Frank)(Walpole Wealth Report)

The global luxury market growth is driven by strong demand for personal luxury items, such as fashion, jewellery, and watches, as well as luxury experiences. (Bain)

The global Ultra-High-Net-Worth Individual (UHNWI) population is expected to increase significantly over the next few years. According to Knight Frank's Wealth Report 2024, the number of UHNWIs is projected to grow by 28.1% over the next four years, leading to a substantial rise in the ultra-wealthy population globally. This growth will be driven primarily by emerging markets in Asia. (Knight Frank)

Art has seen a 45% growth as a passion investment, continuing to be a leading choice among high-net-worth individuals.

(Knight Frank)

(Walpole Wealth Report)(Artsnet)(Sotheby’s)(Sotheby’s)(Smithsonian Magazine)(Luxe)

Art remains the most sought-after passion investment, with a substantial number of ultra-high-net-worth individuals planning to make purchases. Watches are the second most desired, followed by wine. In terms of spending, art once again takes the lead, trailed by classic cars and wine. (Knight Frank)

Most expensive property sold in recent years – Penthouse at Central Park Tower NY£147M

Most expensive property sold in London in recent years – Mayfair Mansion Aberconway House £138M

Average price premium of +12% for design-led homes

20% of UHNWIs plan to invest in residential real estate

London luxury home sales priced at £15 million or above jumped 25% in the last year

(The Space)(CityAM)(Dataloft)(Knight Frank)(Walpole Wealth Report)

One of the most expensive property sold in London was Aberconway House, a mansion in Mayfair. This sale highlights Mayfair's ongoing appeal to ultra-wealthy buyers, especially from overseas, where super-prime real estate remains in high demand. (CityAM)

Prime residential property sales in London continue to rise, with branded residences appealing to ultra-high-net-worth individuals. (Walpole Wealth Report)

Design-led homes generally command a price premium due to their architectural quality, unique features, and often the involvement of renowned architects. Recent studies suggest that such homes can attract a premium ranging between 12% and 25% over similar, non-design-led properties, depending on the market and the property value. For example, research conducted by Dataloft, analysing over 14,000 property transactions in London, found that well-designed homes sold at an average 12% premium. This premium was higher for properties valued over £1 million, reaching up to 19% in some cases. (Modern House - Dataloft)

These premiums are attributed to factors such as better use of space, natural light, and high-quality materials, which create not only aesthetic appeal but also functional benefits that homebuyers are increasingly willing to pay for.

Ultra-High-Net-Worth Individuals (UHNWIs) are showing continued strong interest in property investments. Approximately 1 in 5 plan to invest in residential real estate. The U.S., UK, and Spain are the top destinations for UHNWI property purchases. (Knight Frank)

SUSTAINABILITY AND INNOVATION

LUXURY ETHICAL TRANSFORMATION AND THE RISE OF B CORP BRANDS

Luxury brands have invested significantly in ethical sourcing and production practices to meet the demands of environmentally-conscious consumers.

Gen Z (18.2%) and Millennials (18.3%) that are most drawn to spending on sustainable luxury.

As of 2024, over 8,000 companies have earned B Corp certification, a rigorous standard that evaluates a company’s overall social and environmental impact.

85% of those aware of B Corp Certification reported that it is influencing their purchase decisions.

(Global Luxury Report 2024)(B Corporation)

The luxury industry is embracing a circular economy, supported by AI and technology. Tools like Digital Product Passports and Digital IDs track sustainability throughout a product’s lifecycle. These innovations boost consumer trust, enhance brand reputation, reduce greenwashing, and open up new business models. (Deloitte)

Many luxury fashion brands, such as Stella McCartney, Vivienne Westwood, Gucci, Chanel, Hermès, and Burberry, are demonstrating a strong commitment to responsible production, seamlessly blending luxury with environmental and ethical considerations. These brands focus on various pathways to responsible production, including the use of eco-friendly materials, adopting circular economy principles, reducing carbon emissions, investing in renewable energy, ensuring traceability, and minimising waste in their supply chains. (Sustainability Magazine)

Generation Z stands at the forefront of social and cultural transformation, influencing the value systems of other generations. (Bain)

B Corps are twice as likely to use 100% renewable energy, are more frequently led by majority-female management teams with over 1,800 women-owned businesses, and offer worker ownership opportunities, with 26% allowing employees to own shares in their company. (B Corporation)