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Nearly 25% of the World’s Wealthy to Buy Home Over Next 3 Years

A survey of those with at least $3 million investable assets finds that location, technology are priorities

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Nearly one in four of those surveyed globally with at least $3 million in assets plan to make a real estate purchase in the next three years.

Martin Barraud / Getty Images
Nearly one in four of those surveyed globally with at least $3 million in assets plan to make a real estate purchase in the next three years.
Martin Barraud / Getty Images

Despite persistent global economic and political uncertainties, the most affluent people around the world are showing continued confidence in the real estate market, according to a report released Thursday.

Nearly one in four of those surveyed globally with at least $3 million in assets plan to make a real estate purchase in the next three years, with almost as many considering selling as well, according to the Global Luxury Real Estate Report.

"The world’s wealthy community continues to grow, as does the demand for luxury real estate," said Paul Boomsma, president of Luxury Portfolio International, a global network of independent luxury brokerages, which produced the report alongside research firm YouGov.

Personal wealth has grown substantially all over the world since the end of the recession in 2010, the report said, citing the latest statistics from Credit Suisse. There were an estimated 1,461,560 individuals with a net worth of $10 million worldwide in 2015, representing a 72% increase from 2010. The ranks of the ultra-wealthy, with $50 million or more in net worth, have also soared to new heights. There are an estimated 123,838 individuals at this level, an increase of 53% in just five years.

In 2016, a unique confluence of global events, such as the economic uncertainty presented by Brexit, the flux of the Chinese economy, political unknowns derived from the race for the presidency in the United States and global threats caused by terrorism as well as the refugee crisis, have resulted in a softening high end market, said Mr. Boomsma.

"Nevertheless, the wealthy are feeling optimistic and still have strong intentions of investing in luxury real estate," he added.

Among affluent Americans, 25% plan to make a real estate purchase within the next three years and 18% are planning to sell, according to the report. Outside the U.S., 45% of affluent consumers plan to purchase and 23% intend to sell.

For the affluent U.S. real estate purchasers, who account for more than half of the world’s wealthy, location remains a driving force, with 61% saying that privacy is essential. The wealthy expect comfort and relaxation, as 60% cited a master bedroom with a luxury en-suite bathroom as a priority, and 54% indicating a preference for dual walk-in closets.

Top 10 Characteristics Sought in a Home
FEATURES U.S. WEALTHY
Lots of privacy 61%
Master bedroom with an en suit luxury bathroom 60%
Energy efficiency and environmental design 56%
Kitchen with high-end appliances already installed 55%
Master bedroom with dual work-in closets 54%
Outdoor patio/deck designed for entertaining 50%
An open floor plan throughout the house 50%
Kitchen area conducive to entertaining 45%
A lot of open space around the home 45%
Close proximity to shopping and services 44%
Source: Luxury Portfolio International

The market for sustainable living technologies is more vibrant than ever with the majority of global wealthy committed to that way of life. Whole-house energy solutions that start with sound construction decisions have gained the most traction. Closely following is the convenience promised by smart homes.

The report was based on more than 5,000 online interviews of the top 10% of consumers in 12 countries, as well as analysis of other governmental and institutional data.

Technologies Sought in a Home
TECHNOLOGY U.S. WEALTHY
Sustainable Technology 76%
Energy efficiency and environmental design 44%
Sustainable technologies such as solar panels 40%
Control of heating or air conditioning through a mobile device 37%
Security Technology 57%
Operate home security system through a mobile device 37%
View live or recorded video through a mobile device 36%
Entertainment Technology 46%
Wireless speakers throughout the home 37%
Advanced in-home theater/media center 21%
Source: Luxury Portfolio International

Write to Fang Block at fang.block@dowjones.com