_Next Gen Wealth – Self-made UHNWIs under the age of 40

Using the results from our Wealth Sizing Model and Attitudes Survey, Flora Harley looks at the size of the “next generation” of the world’s  UHNWI populations – and at what that could mean for property markets.

Globally, we estimate that 129,557 UHNWIs are self-made and under the age of 40; almost a fifth of the total population. North America, with 44,751, has the largest cohort, but Asia’s marginally lower total of 44,565 accounts for a higher proportion – 26% – of the region’s super-wealthy. Russia, however, boasts the highest relative number of next-gen wealth creators, with 45% (2,923) of its UHNWIs falling into the category.

So, what does this mean? Well, for starters, in the 2021 edition of The Wealth Report Attitudes Survey we uncovered that 70% of UHNWIs under the age of 40 had different views to their parents when it came to property investing – one of the reasons that we decided to calculate their numbers this year.

This generation is more global, more tech savvy and places greater emphasis on wellbeing – their own, that of their families and that of the environment. Our Attitudes Survey respondents also told us that the next gen view real estate, be it for a home or investment, as more akin to an investment portfolio – the economic case has to stack up.

In Singapore, tech-savvy young UHNWIs are looking beyond the traditionally sought-after Good Class Bungalows (the pinnacle of the city’s property ladder), often seen as exclusive and a long-term store of wealth, notes Nicholas Keong of Knight Frank’s Singapore Private Office. “They want flexibility to build their own home to suit their lifestyle. They often include smart technology, a focus on energy efficiency and connectivity, both digital and physical.”

Younger UHNWIs are global buyers who want to hold assets across geographies, adds Rory Penn, Head of Knight Frank’s Private Office. “They put emphasis on service provision, open space, amenities and room for entertaining, and are willing to refurbish and reimagine space.”

They are also getting wealthier, he points out. “In London’s super-prime (£10 m+) market, there has been a fundamental shift towards younger buyers.” As this cohort of wealth continues to grow, property markets will adjust. In addition, we will likely see more tokenisation and digital ownership of property emerging due to greater adoption and understanding by this younger generation – mortgages based on non-fungible tokens are already being issued.

For the full read (page 17), download a copy of The Wealth Report.