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T H E G L O B A L P E R S P E C T I V E O N P R I M E P R O P E R T Y & I N V E S T M E N T
2 0 2 0 — 1 4 T H E D I T I O N
W E A L T H R E P O R TMIDDLE EAST SUPPLEMENT
T H E
UHNWIs, 2019 totals and growth by region The latest results of the PIRI 100 – our unique Prime International Residential Index – reveal a diverse range of global performance trends
How many square metres of prime property does US$1m buy in key cities?
Knight Frank’s prime residential Forecast 2020
A GLIMPSE OF DATAWELCOME NOTE PRIME PRICE CHANGES
RELATIVE VALUE FUTURE GAZING
GLOBAL REAL ESTATE INVESTMENT TRENDS
HNWI growth in GCC Countries
Private investment in commercial real estateRolling 12-month total
What private capital is invested in2019
KuwaitOman
Qatar
Bahrain
average growth rate forecast of the UHNWI population
across the GCC
26%
16
6.0%
6.0%
5.0%
2.0%
1.0%
1.0%
0.0%
-3.0%
2.0%
6.0%
Monaco
Number of sq m US$1m buys
2019 Forecast Actual
2020Forecast
Paris
Berlin
Hong Kong
London
New York
Singapore
Geneva
Los Angeles
Paris
Sydney
Shanghai
Tokyo
Beijing
Berlin
Miami
Miami
Sydney
Geneva
Madrid
Melbourne
Singapore
Shanghai
Los Angeles
Melbourne
Mumbai
Istanbul
Dubai
Cape Town
São Paulo
21
30
32
35
38
39
45
50
58
65
68
77
90
96
102
115
155
174
202
Average
Auckland
London
Monaco
Cape Town
Mumbai
Hong Kong
Dubai
New York
Vancouver
Buenos Aires
1.0%
1.0%
1.0%
4.0%
6.0%
-5.0%
-10.0%
-2.0%
0.0%
3.0%
-5.0%
4.3%
6.5%
2.3%
3.7%
3.5%
2.2%
1.2%
-0.1%
1.3%
5.1%
0.6%
-0.7%
-2.6%
0.0%
-1.5%
0.5%
2.9%
-0.7%
-3.6%
-8.3%
-4.5%
7.0%
5.0%
5.0%
4.0%
4.0%
3.0%
3.0%
2.5%
2.0%
3.0%
1.1%
1.0%
1.0%
0.0%
0.0%
-1.0%
-2.0%
-2.0%
-3.0%
-5.0%
-6.0%
9.6%Lisbon
-2.6%London
6.6%Mexico City
1.3%Los Angeles
-1.2%San Francisco
-8.3%Vancouver
-3.6%New York
4.9%Toronto
10.3% Frankfurt
4.7%Moscow
5.1%Madrid
2.3%São Paulo
3.8%Barcelona
3.7%Sydney
1.4%Brisbane
2.2%Melbourne
1.2%Singapore
4.3%Paris
3.5%Geneva
4.0%Milan
2.0%Rome
6.5% Berlin
6.5%Manila
-0.1%Shanghai
-0.7%Auckland
-0.7%Dubai
-5.5%Abu Dhabi
-5.0%Doha
-1.5%Cape Town
2.9%Hong Kong
0.5%Mumbai
0.3%Riyadh
$3bn
Senior housing/care
Residential condos
Hotels
Industrial/logistics
Retail
Offices
Apartments
$9bn
$28bn
$45bn
$42bn
$85bn
$333bn
$300bn
$200bn
$100bn
$50bn
2010 2012 2014 2016 2018 2020
$122bn
22%
23%
44%
17%
17%
23%
30%
32%
2019 UHNWI totals 2019-2024 growth
North America249,900
110,846
103,335
14,190
14,178
10,363
5,931
4,501
Europe
Asia
Latin America
Middle East
Russia & CIS
Australasia
Africa
UAE Saudi Arabia
14,434
76,605
20,962
89,235
197,565
272,417
13,850
71,384
19,235
82,906
182,768
270,863
9,826
50,894
13,675
52,452
145,433
149,269
15,776
94,327
29,841
95,046
238,834
279,334
2014 2014 20142018 2018 20182019 2019 20192024 2024 2024
2014 2014 20142018 2018 20182019 2019 20192024 2024 2024
was the total number of UHNWIs worldwide in 2019. The +27%
five-year growth forecast would take the total
to 649,331
513,244
The Wealth Report provides the global perspective on prime property and investment.
I am pleased to welcome you to the first
edition of the Wealth Report of this
new decade. The next ten years have
already been dubbed by some the new
“roaring twenties” – and I am optimistic that,
with many positives to look forward to, they
will live up to that soubriquet.
In this year’s edition of the report we highlight
residential and commercial markets and key
trends across the world that are currently
offering or will offer opportunities for those
looking to invest in property.
To complement the global edition of
the Wealth Report we has designed this
supplement to provide a localised summary of
trends which we feel will be of interest to our
clients.
Through our long-established presence across
the Middle East and indeed the world, Knight
Frank is well positioned to help you capture
the real estate opportunities that are on offer.
We operate wherever our clients need us to be
and our expertise spans the globe, connecting
our far-reaching network with our local
expertise. This allows us to provide personal,
consistent and discreet advice to our clients.
I do hope you find the contents of this
supplement interesting and valuable. If my
team can be of any help, please do get in touch.
JAMES LEWIS
Head of Middle East& Africa
Source: Knight Frank Research
Source: Knight Frank Research
Source: Knight Frank Research
Source: Knight Frank Research,
Douglas Elliman, Ken Corporation
Source: Knight Frank Research
Source: RCA
the PIRI 100’s annual growth in 2019. An improvement
on 2018’s figure of +1.3%
+1.8%
27% 23% 17% 11% 8% 5%Property as an investment Equities Bonds/Fixed
income Cash/ Currencies Private equity
Collectables 3%1%
Gold/ precious metals
Cryptocurrencies
Proportion of the average UHNWI investment portfolio invested in each asset class
% of UHNWIs planning to buy a new a home in 2020
What % of your clients are planning to invest in commercial property in their country of residence in 2020?
What % of your clients are planning to invest in commercial property outside their country of residence in 2020?
Where are UHNWIs planning to purchase?
How are these allocations likely to change in the near future?Net balance
ATTITUDES
Property as an investment
Middle East 38% -4% -4% 48% -10% 4% 44% 35%
Global
Equities Bonds/Fixed income
Private equity
Crypto-currencies
Cash/currencies
Gold/Precious
metals
Collectables
22% -8% 7% 31% -15% 21% 34% 17%
Important noticeThe Wealth Report (© Knight Frank LLP 2020) is produced for general interest only; it is not definitive 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 in The 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. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents. The Wealth Report does not necessarily reflect the view of Knight Frank in any respect. Information may have been provided by others without verification. Readers should not take or omit to take any action as a result of information in The Wealth Report. Reproduction of this report in whole or in part is not permitted without the prior written approval of Knight Frank LLP. In preparing The Wealth Report, Knight Frank does not imply or establish any client, advisory, financial or professional relationship. Through The Wealth Report, neither Knight Frank nor any other person is providing advisory, financial or other services. 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 office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. The Wealth Report is 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 offering 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. Its ownership and management is distinct from that of any other entity or practice, whether operating under the name Knight Frank or otherwise. In any event, no entity or practice operating under the name Knight Frank (including Knight Frank LLP) is liable for the acts or omissions of any other entity or practice. Nor does it act as an agent for or have any authority (whether actual, apparent, implied or otherwise) to represent, bind or oblige in any way any other entity or practice that operates under the name Knight Frank (including Knight Frank LLP). Where applicable, references to Knight Frank include the Knight Frank global network.
23%
20% 32%
24% 17%
1
2
3
4
5
6
7
8
9
10
Africa
Middle East Middle East
Global Global
Australasia
Europe (excl UK)
Latin AmericaIndian subcontinent
Middle EastNorth AmericaRussia & CIS
UK
Regional average
Asia (excl Indian subcontinent) 21%
15%
22%
21%
24%
26%
19%
18%
20%
21%
Rank Middle East Global
UK
US
Switzerland
France
Portugal
Italy
Singapore
UAE
Greece
Malta
UK
US
Australia
Singapore
France
Spain
Canada
Portugal
Italy
Switzerland
COMMERCIAL
HEAD OF RESIDENTIAL - MENA
Maria Morris
Partner
+971 56 4542 983
HEAD UK RESIDENTIAL SALES
Henry Faun, MRICS
Partner
+971 56 1102 407
KINGDOM OF SAUDI ARABIA
Stefan Burch, MRICS
Partner
+966 112 890 776
Saud Sulaymani
Partner
+966 112 890 779
VALUATION & ADVISORY
Stephen Flanagan, MRICS
Partner
+971 50 8133 402
HOSPITALITY & LEISURE
Ali Manzoor
Partner
+971 56 4202 314
HEALTHCARE & EDUCATION
Shehzad Jamal
Partner
+971 56 4101 298
REAL ESTATE STRATEGY
& CONSULTING
PP Varghese
Partner
+971 56 1766 588
RESEARCH
Taimur Khan
Associate Partner
+971 56 4202 312
MIDDLE EAST MARKETING
Thomas Farmer
Associate Partner
+971 56 6116 368
LOCAL
CONTACTS
KNIGHTFRANK.AE
@KnightFrankME @KnightFrankMiddleEast @KnightFrankME
@KnightFrankMiddleEast @KnightFrankMiddleEast
respondents say European, Middle Eastern and UK
wealth will stay the same in 2020
40%+
Sources: The Wealth Report, Attitudes Survey
