An IMGW News Report
The 19th edition of Knight Frank’s Wealth Report offers a sober assessment of the world’s wealthy and the assets they prize. Beneath the headlines of geopolitical turmoil and rising debt burdens, it detects continuity in one respect: demand for real estate and tangible luxury remains resilient.
Knight Frank, established in London in 1896, is a global property consultancy with more than 500 offices in over 60 markets. It is recognised for its research and analysis of international real estate trends.
IMGW.news Highlights: Five Key Takeaways from the Knight Frank Wealth Report 2025
1. Global Wealth
- UHNWI population grew 4.4% in 2024 to over 2.3m.
- US dominates with nearly 40% of $10m+ individuals; China second, India and Africa rising.
- Billionaires older: average age now 65.7 — transfer of wealth slower than expected.
“Africa is singled out as the “next wealth powerhouse”, its demographic dynamism and infrastructure push positioning it for outsized growth”
2. Investment Behaviour
- 44% of family offices increasing real estate allocations.
- Luxury assets correction: –3.3% overall; art –18%, whisky & wine negative, cars +5%, jewellery +4%.
- Private capital strong: property already 22.5% of portfolios.
3. Regional Property
- Dubai +170% since 2020, world’s leading super-prime market.
- Miami & Palm Beach: gains of 90% and 170%.
- London: – 17% since 2014, but 43% discount for dollar buyers.
- Monaco now double London prices; Singapore hampered by 60% foreign buyer tax.
4. Demographics & Values
“Knight Frank’s Next Generation survey of 18- to 35-year-olds finds nearly half would rather spend a windfall on experiences than on goods. Health and wellness rank as top priorities, outstripping cars or watches”
- Female wealth up 38% in a decade, but still just 11% share.
- Millennials & Gen Z drive sustainability, ESG and experiences over goods.
5. Risks & Outlook
Climate change shaping property, vineyards and yachts.
Global GDP forecast: ~3% in 2025.
Risks: trade wars, fiscal deficits, stubborn inflation, AI bubble.
A Broader Analysis
Interest rates still set the tone
Higher borrowing costs and volatile inflation have curtailed global property investment, down nearly 60% from the 2021 peak. Yet signs of stabilisation emerged in late 2024, with volumes edging up. Family offices, far from retreating, appear poised to expand: 44% plan to increase allocations to property, particularly in living sectors and logistics (Knight Frank Wealth Report 2025).
The geography of wealth is unbalanced
The United States remains the world’s “indispensable nation”, producing nearly 40% of all individuals with fortunes above $10m, and more than 40% of those above $100m. China is the only near-rival, though its billionaire wealth has softened. Elsewhere, Africa is singled out as the “next wealth powerhouse”, its demographic dynamism and infrastructure push positioning it for outsized growth, if not yet in absolute terms (Knight Frank Wealth Report 2025).
Chart 1: Global Distribution of UHNWIs (2024)
Source: Knight Frank Wealth Report 2025
The much-heralded ‘great wealth transfer’ is gradual
Baby boomers still dominate ownership, and the average billionaire is now older than a decade ago. Younger affluent groups, however, are shaping values. Knight Frank’s survey finds two-thirds of wealthy Millennials prefer purpose-led investments, with sustainability and impact now mainstream priorities across generations.
Luxury assets wobble, but real estate endures
The Knight Frank Luxury Investment Index fell 3.3% in 2024, dragged down by art (–18.3%) and whisky, while classic cars and jewellery held value. By contrast, property retained appeal. Dubai has emerged as the world’s leading super-prime market, accounting for a fifth of all $10m+ home sales. London offers steep currency-driven discounts for dollar buyers – up to 43% compared with 2014 – though higher taxes and political uncertainties temper enthusiasm (Knight Frank Wealth Report 2025).
Chart 2: Knight Frank Luxury Investment Index 2024 (% Change)
Source: Knight Frank Wealth Report 2025
Prime property divides markets
Dubai’s meteoric rise – 170% since 2020 – contrasts sharply with London, where values remain 17% below their 2014 peak. Miami has gained nearly 90%, while Monaco and Singapore have eked out steady but modest growth.
Chart 3: Prime Property Price Changes (2020–2025, %)
Source: Knight Frank Wealth Report 2025
The new affluent prize experiences over possessions
Knight Frank’s Next Generation survey of 18- to 35-year-olds finds nearly half would rather spend a windfall on experiences than on goods. Health and wellness rank as top priorities, outstripping cars or watches. Yet when pressed to identify the ultimate status symbol, high-end real estate still leads.
Risks are mounting
The report lists trade wars, fiscal ill-discipline, stubborn inflation and a possible AI bubble as threats to global markets. Still, despite turbulence, global GDP is forecast to grow at around 3% in 2025, sustaining demand for “best-in-class” assets (Knight Frank Wealth Report 2025).
The lesson is familiar: volatility abounds, but wealth adapts. For those with the means, real estate – supported by scarcity, demographics and status – remains the safest luxury of all.
