'Global demand for luxury homes strong in EMEA region'

Ultra-rich individuals collectively own real estate worth nearly USD 3 trillion globally and demand for luxury homes is strong in the Europe, the Middle East and Africa (EMEA) region, says a report.
According to a new report by Wealth-X and the Sotheby's International Realty brand released today, ultra wealthy individuals are buying up luxury homes around the world to further diversify their holdings.
"There are 211,275 UHNW individuals globally, who collectively own nearly USD 3 trillion of real estate, equal to 10 per cent of their net worth," as per Wealth-X, the global wealth intelligence and prospecting company.
The report said that the EMEA region offers purchasing and investment opportunities, particularly in Madrid, Dubai and Cape Town, where luxury properties and strong lifestyle considerations may appeal to UHNW buyers.

"As their (UHNW individuals) wealth continues to grow, so will their investment fueled by flight to safety from less geopolitically stable geographies," Wealth-X President David Friedman said.
London was the top real estate hub in the EMEA region. The city's price per square foot (USD 3,103) is nearly four times that of Dubai, six and nine times more than Madrid and Cape Town respectively.

The less expensive price per square foot for premium real estate in Cape Town generally leads to larger houses.
"A luxury property in the South African city has six bedrooms on average - higher than Madrid and Dubai, the two other cities profiled in the report," the report said.

Philip White, president and chief executive officer, Sotheby's International Realty Affiliates LLC, said, "the research shows that trends and the economic climate in some EMEA countries are stimulating alternative investments such as real estate in these local markets."
The UHNW Residential Real Estate index tracked by Wealth-X hit a new record high of 112.1 in the first quarter of 2015, up nearly 4 per cent from the fourth quarter of 2014, and 7 per cent from the first quarter of 2014.
"This highlights the strength of the global luxury real estate sector on the back of demand by ultra high net worth (UHNW) individuals," Wealth-X said.