The Wealth Report 2018COMMISSIONED BY Lord Andrew Hay EDITORAndrew ShirleyGLOBAL HEAD OF RESEARCHLiam Bailey WRITTEN BY Knight Frank ResearchRESEARCHGráinne Gilmore Anthony Duggan Kate Everett-Allen William Matthews Sophia King Tom Bill Flora HarleyDavid Ji CHIEF ECONOMISTJames Roberts CREATIVE HEAD OF PUBLICATIONSChristopher Agius GROUP PUBLICATIONS MANAGERKate Mowatt HEAD OF CORPORATE COMMUNICATIONSAlice Mitchell PRINTED BY Optichrome ALL KNIGHT FRANK CONTACTS:firstname.familyname@knightfrank Defnitions UHNWIUltra-high-net-worth individual –someone with a net worth of over US$30 million excluding their primary residence HNWIHigh-net-worth individual – someonewith a net worth of over US$1 millionexcluding their primary residencePRIME PROPERTYThe most desirable and mostexpensive property in a given location,generally defined as the top 5% of eachmarket by value. Prime markets often have a significant internationalbias in terms of buyer profile SUB-EDITORLouise Bell, Sunny Creative PHOTOGRAPHYPortraits of Lord Andrew Hay and Liam Bailey by John WrightPortraits of Niall Ferguson by Tom Barnes and Anders Birger COVERRadoslav ZilinskyILLUSTRATIONSStanley Chow SHOUT Stephan Schmitz DATA VISUALISATIONS Nicholas Rapp NOW AVAILABLEViewThe Wealth Reportand properties from around the world on your device today knightfrank/wealthreport Important noticeThe Wealth Report( Knight Frank LLP 2018) is produced for general interest only; it is not defnitive and is not intended to give advice. It must not be relied upon in any way. Although we believe that high standards have been used in the preparation of the information, analysis and views presented inThe Wealth Report , no responsibility or liability whatsoever can be accepted by Knight Frank for the contents. We make no express or implied warranty or guarantee of the accuracy of any of the contents. 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In particular, Knight Frank LLP is not authorised by the Financial Services Authority to undertake regulated activities (other than limited insurance intermediation activity in connection with property management). Knight Frank LLP also trades as Knight Frank.Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered ofce is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.The Wealth Reportis compiled from information contributed by various sources including Knight Frank LLP, its direct UK subsidiaries and a network of separate and independent overseas entities or practices ofering property services Together these are generally known as “the Knight Frank global network”. Each entity or practice in the Knight Frank global network is a distinct and separate legal entity. 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SENIOR PARTNER AND GROUP CHAIRMANAlistair Elliott+44 20 7861 1141alistair.elliott@knightfrankGLOBAL WEALTH ADVISORY Paddy Dring+44 20 7861 1061paddy.dring@knightfrank Rory Penn+44 20 7629 8171rory.penn@knightfrankThomas van Straubenzee+44 20 7629 8171thomas.vanstraubenzee@knightfrank COMMERCIAL PROPERTY ENQUIRIESDeborah Watt+44 20 7861 1678deborah.watt@knightfrank GLOBAL PROPERTY SERVICESLord Andrew HayResidential+44 20 7861 1071andrew.hay@knightfrankAndrew SimCapital Markets+44 20 7861 1193andrew.sim@knightfrank William Beardmore-GrayOccupier Services & Commercial Agency+44 20 7861 1308william.beardmore-gray@knightfrankRupert JohnsonValuation & Advisory+44 20 7861 1284rupert.johnson@knightfrank Global and local insight The Wealth Reportprovides a platform for Knight Frank to examineand assess the global trends that matter to our clients. Behind thismacro picture, our research teams produce a wide range of local marketreports and sector analysis to help our clients identify and understandthe residential and investment opportunities available to them. Leading this process isThe Wealth ReportCity Series, the frst ofwhich was published in 2017 and focused on Melbourne. This year,the second in the series looks at Dubai, providing a comprehensiveoverview of economic, property market and lifestyle trends. The Dubai Edition covers: The impact of the Bureau International des Expositions’ decisionto award the World Expo 2020 to Dubai, making it the frst cityin the Middle East to receive this accoladeCurrent residential market trends – having experienced headwinds in recent years, market performance is moving ina positive direction with annual price growth outstripping regional peers in the 12 months to December 2017Dubai’s expanding role as a hub location for Asia, the MiddleEast and AfricaQuality of life and business rankings – and their impact onproperty market performance.This invaluable guide for anyone considering investing in Dubai isavailable to download at knightfrank To fnd out more about our future plans forThe Wealth ReportCitySeries, contact fora.harley@knightfrank 1 | KNIGHTFRANK THE WEALTH REPORT Welcome to The Wealth Report I n last year’s “Welcome”, I commented that the world appearedto be at a crossroads. Fast forward 12 months, and we arestill waiting for strong global leadership to determine thedirection of travel.The range of events creating political turmoil is more diversethan ever: high-stakes verbal sparring between North Korea andthe US; the EU’s need to help Spain navigate the Catalonian crisisand balance the growing East-West schism over migration; foodsecurity concerns; and ongoing unrest in the Middle East, tomention but a few.Set against this backdrop, the health of the global economysurprised many in 2017 – and is likely to continue to provide moregood news this year. Yet despite positive economic fundamentalsunderpinning many of our markets, reading through this editionofThe Wealth Report , many articles – in particular our interviewwith eminent historian Niall Ferguson – confirm that it is thepolitical risks that have the potential to cause upset, making thefuture ever harder to predict. As an adviser to some of the world’s wealthiest people, life at Knight Frank is fast-paced and exceptionally interesting. Providingthe best advice during constantly changing times is challenging.But by employing the best people, continuously enhancing ourresearch capabilities and extending our global network, we aim toreact quickly to events, ensuring our advice enables our clients toconstantly recalibrate their investment strategies.The desire to “take back control” is an increasingly importantpart of these strategies. Many of you are taking a more hands-onrole when it comes to your investments, employing in part yourown expertise, forming syndicates and building relationships withcarefully selected trusted advisers who can ofer bespoke adviceon specifc sectors. The growing infuence of family ofces as real- estate investors, described on page 53, is a clear example of this. As ever, Knight Frank is listening and evolving to meet the needsof our clients. Our Family Ofce Forum brings like-minded privateinvestors together, while a dedicated 26-strong high-net-worthfocused team provides our most global clients with a single pointof contact for all their property needs in the key markets worldwide. I am confdent that this year’s edition ofThe Wealth Reportwillboth guide and reassure you. In addition to exploring the movementof wealth around the world and the fluctuations of the world’sluxury residential property markets, this year’s report ofers somefascinating insights into luxury spending trends, be it investing ina record-breaking piece of art or, as in the case of one particularclient, your own sports team. It is likely that many of the articles will prompt further questions.Please do get in touch if you would like further information fromour research team or guidance on your property portfolio. We arehere to help you, and look forward to working with you in 2018. LORD ANDREW HAY GLOBAL HEAD OF RESIDENTIAL 12th editionTHE WEALTH REPORT Contents 2 | KNIGHTFRANK3 | KNIGHTFRANK 04. 12. 33. 77.84. 61. Final word The death of cheap money will helpshape prime property performance,argues Liam Bailey Databank Global wealth distribution andThe Wealth ReportAttitudesSurvey 2018 results in detailFrom the editor AndrewShirley gives a globalperspective on the key trends from our 2018 edition Globalwealth Property Luxury spending A fne balanceThe latest results of the Knight Frank Prime International Residential Index page 34 Watch this placeThe challenges and opportunitiesfacing residential markets in 2018page 40 Peak performers Prime residential markets set to outperformpage 42 Firm foundationsPrivate investors are drivinginvestment property markets and global mega-dealspage 48 From strength to strength Family ofces are broadening their property portfoliospage 53 Economic outlookThe key themes set to shape property investment markets in 2018 and beyondpage 56 Leading lightsTop locations and sectors for privateproperty investors to consider page 58 20/20 visionAn Indian billionaire IPL ownershares his love of cricket page 62 Face-ofThe results of the Knight FrankLuxury Investment Index page 66 Home is where the art isThe evolving links between art and property page 70New order The latest research into the globalpopulation of wealthy individualspage 14 Follow the money A unique analysis of global wealth fowspage 20 Urban powerThe Knight Frank City Wealth Index page 26 Passing the bucksWhy is succession such a big issue for the wealthy page 30 Chain reactionWill Blockchain revolutioniseproperty markets page 3206. The biginterview Historian Niall Ferguson talksexclusively toThe Wealth Report about the issues facing the world and its wealth creators 。。。。。。