HNWIs shape
as long-standing favourites such as the
global demand
Caribbean and north America. “These long-haul
destinations offer longer seasons and greater
rental potential than many short haul options, as
well as genuinely exotic lifestyle choices for
The exclusive top-end of the global property
buyers who keep their homes for personal use”
market will see less of a downturn and a faster
recovery than any other sector because of the
explains Rebecca Gill.
recent surge in the numbers and activities of High
Fourthly – and the area where the current
Net Worth Individuals (HNWIs).
downturn may make the strongest impact – is
The number of HNWIs worldwide has risen
the growing importance of destinations offering
7.6 per cent per year since 1997. There are now high quality, sophisticated facilities.
1,125 individuals worth at least US$1 billion; most “The recession has helped focus minds on
of these billionaires are in the US (44 per cent),
this issue. Destinations and developers know
Europe (22 per cent) and Asia-Pacific (19 per
they must bend over backwards to offer the
cent). The number of Russian billionaires has
most attractive features to persuade people to
grown by two-thirds since 2006 and now
buy. They can’t rest on their laurels or offer the
represents 8 per cent of the world’s total.
“HNWIs shape global demand for luxury
same as they have for the past 20 years.
homes, goods and lifestyle pursuits. Many of
Standards must rise, everything must be more
these see the downturn as a short-term
exciting” insists David Vaughan from Savills’
opportunity for investment, not a permanent
international department.
negative” says Charles Weston-Baker.
Discerning purchasers
New minimum standards for many buyers
demand for property will continue to grow, as these days include spas with extensive ranges
life-spans and affluence both increase. of treatments, challenging and beautiful golf
The third factor boosting global property is courses, and marinas with depth and space for
the increasing enthusiasm of buyers to consider mega-yachts. Increasingly that means looking
both safe, politically-stable countries and to established quality brands – Four Seasons
emerging nations. and Banyan Tree, for example – to guarantee
In short-haul terms this means a growing minimum standards at resorts that will be
demand for all property in Switzerland which, universally recognised by discerning purchasers.
thanks to long-term restrictions on foreign David Vaughan believes that The Carbonera
ownership and a legendary stable economy, has Club on Cuba, featured elsewhere in this
retained its reputation as a financial safe haven.
Complementary to this is the proliferation of
budget airlines. This allows the sustainable
growth of property markets in European and
“Long-haul destinations can
north African locations – France, Italy, Spain
and Morocco are good examples. They are offer longer seasons and
perfect for the weekend breaks and last-minute
bookings that have become permanent features
greater rental potential than
of our increasingly work-intensive but luxury-
seeking lifestyles.
many short-haul options.”
Long-haul options now include the likes of
the Middle East, Mauritius and Thailand as well Rebecca Gill, Savills International Research
Montenegro Brazil Mauritius
A young and developing residential market, A steadily expanding tourist industry, with The volcanic island of lagoons and palm-
with rising interest in second homes. Just more than 4.7 million visitors per annum, fringed beaches in the Indian Ocean has
like Croatia, its higher profile neighbour, means that economically-sound Brazil is preserved its image as one of Africa’s
Montenegro possesses areas of outstanding beginning to attract overseas investors economic success stories. It is a growing
beauty and an attractive natural coastline. searching for long-haul second homes. centre for upmarket tourism.
savills global residential review 7
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