Luxury global real estate is booming, with demand for property from the ultra-wealthy at an all-time high, according to the latest report from Wealth-X and Sotheby's International Realty. The UHNW Residential Real Estate index tracked by Wealth-X hit a record of 112.1 in the first quarter of 2015, up nearly 4% from the fourth quarter of 2014, and 7% from the first quarter of 2014. The report says this highlights the strength of the global luxury real estate sector on the back of demand by ultra-high-net-worth individuals. The index takes into account values from the “full range” of luxury residential properties owned by the world’s wealthiest people, in financial hubs such as New York, Hong Kong, London, Singapore, Mumbai, Los Angeles, Paris, San Francisco and Washington D.C. There’s a composite index for countryside properties around the world.
RELATED: Hong Kong Luxury Sales: Relentless The Europe, Middle East and Africa Luxury Residential Real Estate Report for 2015 says this index's continued rise represents the growing confidence UHNW individuals have in investing their fortune in real estate. There are now 211,275 people Wealth-X categorizes as UHNW living globally, collectively owning almost US$3 trillion of real estate, making up 10% of their net worth. David Friedman, president of Wealth-X, said: “Because it touches upon several key elements in an ultra-affluent individual’s life, including lifestyle, investments and family, luxury residential real estate encapsulates a core part of their identity. As their wealth continues to grow, so will their investment fuelled by flight to safety from less geopolitically stable geographies.” More: Indian Luxury Home Buyers Go Global The report says that the Europe, Middle East and Africa region offers particular purchasing opportunities, with London remaining the top real estate hub. The value of luxury property in the U.K. capital is four times that of Dubai, at $3,103 per square foot. One third of all premium London properties for sale are worth more than $10 million (premium is defined by the report as homes valued above $1 million). By comparison, only 8% of Dubai’s luxury properties are worth more than $10 million.