As we all know, luxury brands are the first choice of “Ultra High Net Worth Individuals”. This is because they are the ones who have the funds to buy products and services of this nature. These UHNWIs are defined as people who have a net worth of at least $30 million per household. The last count of these individuals showed that there are just slightly less than 200,000 UHNWIs in the world. Due to the changing landscape and behavioral pattern of the UHNWIs, a global trend report was commissioned by the Beverly Hills Conference and Visitors Bureau (BHCVB) to look into the current landscape of global luxury, and also analyze the high net-worth market. In this article, we will be looking at the credentials of the top European cities with the highest number of UHNWI count.
- LONDON - Being the world’s capital for the super-rich, this city has the greatest concentration of luxury hotels in the world. It also has five star restaurants, auction galleries and a host of designer boutiques. The starting price for a pied-a-terre in London is £5 million with family homes rising to £40 million. According to a recent survey, London rates a 9 out of 10 for its luxury store footprint. The city is projected to overtake Paris and Milan as the world’s luxury shopping market by 2018. The UHNWIs of this city spend on premium travel and imported goods more than any other European city. Although London has always been favored by the super-rich due to its strong financial system, cultural heritage and international appeal, the city’s central time zone and airport hub make it easier to go from east to west and vice versa.
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TOKYO - This wonderful city houses approximately
3,500 UHNWIs, and this is due to the heavy influx of UHNWIs from
neighboring countries such as China. Although Japan’s super-rich are not
as wealthy as their counterparts from other countries, they have
succeeded in influencing the Tokyoites with their wealthy lifestyles.
The global trend of luxury in the world can be traced to Tokyo where
goods attain a luxury status based on their provenance and attention to
detail.
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SINGAPORE - This luxurious city has now overtaken
Tokyo as the world’s most expensive, and it is expected to become Asia’s
greatest concentration of UHNWIs by the year 2023. This is mainly due
to its political stability and business focus. The wealthy spend
lavishly on shopping, and much of this is done when they travel. Due to
the stamp duty which is now imposed on second and third homes, investors
are now looking to divert real estate investment to other cities like
London and New York.
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NEW YORK - The United States has become a safe haven
for wealth flowing from all across Europe. Luxury property in New York
increased by approximately 19% last year. The price of apartments in the
city has more than tripled in the last five years. About one fifth of
the total money being invested in hedge funds worldwide has New York
City as its main focus. Retail accounts for most of the US economy, but
recent surveys show that consumers are now spending money on spa
treatments, experiences and expensive meals.
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HONG KONG - When considering the percentage of
super-rich residents who own luxury goods, Hong Kong is number one. The
super-rich individuals of this city spend a lot on leisure trips, and
also on setting up charity foundations, similar to the UHNWIs of New
York. Hong Kong competes for the Asian market share of UHNWIs with other
destinations in Asia such as China, Thailand and Japan.
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FRANKFURT - It can be said that Germany’s UHNWIs
are evenly spread across the country, but while the GDP of the country
is not increasing much, the top earners income has seen a sharp
increase. The UHNWIs of the country spend their money mostly on
designers clothing, wrist watches and jewelry. While Munich tops the
list in terms of the spending in the country, Frankfurt houses more
UHNWIs due to its airport, which is the third largest in Europe.
According to a recent survey, it has been discovered that Germans spend a
lot more on glassware, porcelain and domestic appliances. They also
seem to love products that are tailored to detail, which mirrors that of
the Tokyoites.
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PARIS - France is the number one place for
industrialized luxury goods such as leather, textiles, jewelry and fine
wines. Paris is the number one destination for retail while France as a
country is the number one tax-free shopping location in the world. Paris
is well known for its taste in fashion, which has led to the growth in
sales of luxury bags and small jewelry. The city’s investment in
hospitality has seen an increase in the number of five star rooms to
over 2,000.
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OSAKA - The second largest city in Japan has also
benefitted from Chinese visitors while the number of millionaires in the
city has risen by over 52%. Osaka is rated number seven in the world
for spending on women’s luxury and cosmetics. Osaka’s government is
working hard to establish the city as a luxury retail destination in the
world.
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BEJING - The hike in the number of billionaires in
China is amazing as there are now approximately 715 billionaires in the
country as opposed to 4 in 2004. Chinese purchasing power knows no
bounds as the country boasts of about 3.000 private yachts, a number
expected to triple in the next five years. With birth rates on the rise,
spending on children’s brands has now become the new norm for Chinese
society, which now looks to offer more lifestyle options.
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ZURICH - With about 1,400 UHNWIs, Zurich has the
third-highest density of millionaire residents in the world. The
country’s favorable tax regime means that Switzerland now has 30% of its
residents coming from a combined 166 countries across the globe.
Spending on automobiles as well as leisure activities such as skiing and
yachting is the norm for the super-rich individuals of this city.
Switzerland is now tightening up tax regimes and also opposing EU’s
immigration laws as a result of the high influx of wealthy
foreigners.
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LOS ANGELES – This city ranks 20th on the list of
cities with UHNWIs. Beverly Hills, located in LA, has a median household
worth of $1 million, and prices seems to be rising fast. The city’s
association with Hollywood means most of the UHNWIs got their wealth
from entertainment and sports. With about 6 million visitors a year, it
is obvious that the luxury locales of this town are now attracting the
wealthy to this city.
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