What is The Global Wealth Migration?
The Global Wealth Migration is a worldwide phenomenon, in which increasing numbers of internationally wealthy mobile entrepreneurs and investors – with a liquid investable wealth of over $1M – move their businesses and families from places of origin to new ‘hot spot’ destinations. The main drivers are quality of life, education, security, mobility and tax benefits.
As we have reported previously, the pace of change has increased rapidly since the COVID-19 pandemic, driven by significant changes in the global landscape both politically and socially in conjunction with wealth investment strategies.
An unprecedented 128,000 global millionaires are expected to relocate in 2024 alone, eclipsing the previous record in 2013 of 120,000. This signals a 16% increase from the 110,000 who moved in the pre-pandemic days of 2019.
These wealthy global citizens are seeking out the ultimate freedom; the ability to live where they want, travel where they want and raise their families in a safe environment, all to deliver the very best quality of life the world has to offer.
The trend is only set to continue. Destinations worldwide continue to wake up to the benefits of luring these global citizens, using investment migration as a mechanism to attract them to invest, access and operate in a number of wealth hubs across the continents. In this symbiotic relationship, both the destination and the millionaire migrant benefit.
With powerful investment immigration strategies in place, such as accessible residency in the form of ‘golden visas’, significant tax benefits, as well as robust education and lifestyle infrastructures, this cohort is being wooed and the wheels of this migration movement oiled.
What impact is the migration having on destinations?
“This great millionaire migration signals a profound shift in the global landscape and the tectonic plates of wealth and power with far-reaching implications for the nations they leave and those in which they make their new homes,” says Dominic Volek of Henley & Partners, a global leader in Residency & Citizenship by Investment.
There are some clear winners in terms of this migration, with certain countries and regions displaying a significantly stronger pull.
The UAE is a haven for these high-net-worth families, and is forecast to see a staggering influx of 6,700 high-net-worth individuals this year alone.
With low crime rates, favourable tax policies, economic resilience, political stability, world-class infrastructure and its strategic location, it’s no surprise UAE sits firmly at the top of the list for attracting mobile millionaires.
Let’s not forget that these moneyed migrants not only take their fortunes with them; they also travel with their expertise, networks and dynamics, each of which have a direct impact on the economic vitality of the destination of choice.
On the flipside, we see some clear losers in terms of the march of the millionaires, with the top outflow countries being China, the UK and India. One important factor to note is that whilst China and India may be losing millionaires to this migration, they are creating them at a faster rate than the outflow. In comparison, the UK appears to be losing its millionaires (the number of which is anticipated to be a mere 9500 by the end of 2024) and not replacing them with a new generation of UHNW individuals.
Redefining Super Wealth with the Centi-Millionaires
The other significant factor in global wealth is the redefining of the super-rich. Over the past decade, the accepted benchmark for ‘super-wealthy’ status has risen dramatically, from USD 30 million in the late 1990s to a staggering USD 100 million today. According to Henley & Partner’s recent report, this exclusive club – known as centi-millionaires – has grown by more than 50% over the last decade, and there are currently 29,350 individuals worldwide with liquid investable assets of USD 100 million or more.
The geographic distribution of this wealth is revealing. One-third of the world’s centi-millionaires reside in 50 key cities across the globe, with nearly two-thirds of these wealth hubs located in countries offering strong investment migration programmes. This concentration speaks volumes about the interconnected nature of global wealth and the allure of strategic residence and citizenship planning.
The USA continues to dominate the centi-millionaire landscape, claiming 1st, 2nd, and 3rd place in the top 50 cities for centi-millionaires ranking, and boasting a total of 15 metropolises on the elite list – Top 50 Cities for Centi Millionaires
Asian cities are rapidly ascending as global super-wealthy hubs. Whereas Europe’s representation in the centi-millionaire landscape sadly is a different story due to changing dynamics and mixed fortunes.
London, once considered the financial capital of the world and global epicentre of wealth, now ranks just 4th in the top 50 cities for centi-millionaires. Paris claims the 10th spot, with Nice as the only other French city in the Top 50 with 95 centi-millionaires calling the Cote d’Azur home.
Where are the Ultra-Wealthy investing right now?
According to Tiger 21 (the premier peer membership organisation for ultra-high-net-worth wealth creators and preservers), despite many mixed signals in the economy, the ultra-wealthy are heavily investing ‘long’ with 76% of their portfolio in real estate, public equity, and private equity.
As global economies shift and ultra-high-net-worth individuals seek diversification in both their assets and lifestyle options, investment migration has gained traction as a popular strategy. The appeal of owning multiple properties across the globe, particularly for those in the centi-millionaire bracket, cannot be overstated. Over 90% of centi-millionaires own more than one home and approximately 65% own second homes outside their home country.
Investment migration programs tied to real estate present a unique opportunity for this elite group. Not only do they offer attractive returns on investment through property appreciation and rental yields, but they also provide the bonus of alternative residence and citizenship benefits. Many countries that offer residence or citizenship by investment programs have attractive real estate markets, making them top destinations where centi-millionaires can invest in property, secure their second or third homes, and simultaneously gain the flexibility of additional residence or citizenship.
What do Migrating Millionaires and The Super Rich want and need when creating new futures and new landscapes?
To gain more insight into what the super wealthy are looking for, we spoke with Jimmy Widen, CEO of 3SA Estate. Widen operates a complete 360-degree property and lifestyle management service for HNWI and UHNWI in Dubai and Marbella – two of the hot spot immigration investment destinations for this elite group.
Dubai sits as one of the UAE’s greatest wealth magnets, and continues to impress as a destination that has just witnessed a 40.8% rise in real estate sales, value to $13 billion in August 2024.
Marbella, in the Costa del Sol, is a destination worth watching; it is part of Henley & Partner’s so-called ‘Safe Haven 8’ which denotes destinations that have positively transformed their economies by encouraging these wealth magnets.
The Andalusian gem has also seen a significant uplift in international designers like Fendi, Karl Lagerfeld and Dolce & Gabbana investing in Marbella with branded residences, and Rafael Nadal is also known to be working with a developer to create 200 branded villas.
With nearly a decade of experience and €450 m worth of real estate transactions for international investors, migrating millionaires and the super-rich, 3SA Estate works on the philosophy of ensuring that they and their clients stay three steps ahead in every aspect of the property and lifestyle curve.
In real terms, this means 3SA Estate delivers a trusted and professional approach to real estate and lifestyle management, all aimed at facilitating the smoothest transition to a powerful investment and a completely new way of life.
“We have witnessed and been involved in the significant acceleration of investment in both Dubai and Marbella over the last seven years. This combined understanding of the ultra-luxury and luxury property landscapes in both destinations, blended with our complete lifestyle concierge, means we can understand what our clients want and deliver effortless transition to a new rewarding way of life ” says Jimmy.
“For my team and I, it’s about offering total solutions from sourcing the right property in the right location to selecting the best schools, advising about ‘golden visa’ applications and connecting them with like-minded social and business networks. All to deliver the best quality of life as simply and as effortlessly as possible.”
Working with business entrepreneurs, royal families, celebrities and sports personalities, the entire 3SA team is dedicated to delivering the very highest level of personal service with the utmost discretion and integrity.
“Our clients are looking for a professional service with the ultimate level of privacy and discretion, we consider ourselves to be a trusted partner to smooth the transition to any property investment or lifestyle change in our two destination hubs.”
For furthe details on Henley & Partners and 3SA Estates.
