According to a 2015 study by Wealth-X and Sotheby's, the global population of ultra-high net worth individuals was about 211,275. To be defined as an Ultra-high net worth individual, (UHNWI) one must possess investible assets of at least $30 million, excluding personal assets, such as a primary residence, collectibles and consumer items.
Does this sound like a real estate client you'd like to have? Wait, it gets better! The study shows that ultra-high net worth individuals are very active in the luxury real estate market, with 79% of them owning at least two properties. About 50% of them own at least three properties! Here are other findings from the study:
- UHNWI’s buy and sell real estate frequently, averaging one transaction every three years.
- $2.9 trillion of their wealth is held in owner-occupied residential real estate.
- UHNWI’s are increasing the number of properties they hold outside of their home countries.
- The top 3 favorite property ownership locations: the U.S., the United Kingdom and Switzerland.
- Over 7% of UHNWI’s have made their wealth through real estate, up from 5% in 2013.
Ultra-high net worth individuals are increasing in population and in wealth, with the United States, China and Russia leading the way.
How do Ultra-High Net Worth Individuals make real estate decisions? According to the study, they make their luxury real estate decisions based on three distinct values: emotional value, practical value and business value.
- Emotional value is weighed by the property’s proximity to family, and how well the location suits their daily lifestyle.
- Practical value revolves around the standard of living and institutional setup.
- Business value centers on the home’s proximity to local industry, and the buyer’s financial base.
How can you attract Ultra-High Net Worth clients?
Stephan Shapiro shared these tips with REALTOR® Magazine:
Networking. Selling real estate is a collaborative business. You can be repping the best property in Beverly Hills or Malibu, but without a large network of colleagues to work with, it will be harder to sell.
Strong online presence. Create a strong website that resonates with your targeted luxury audience. This requires the right content and excellent SEO. If you cannot do this yourself, then invest in a good web marketing team.
Display knowledge and trustworthiness. The first step of selling to any buyer, no matter their price range, is developing trust. For example, you can use short video clips to discuss topics of interest to luxury buyers and sellers. And when you have a high net worth client, honor their privacy; do not discuss their business with others.
Develop a powerful personal brand. As you develop your marketing plan to create relationships and referrals, incorporate the key values that high-net-worth individuals covet. These include intelligence, efficiency, service, discretion and integrity.
Do you need to spend a fortune to attract luxury clients?
No. Professional luxury branding and marketing services are quite affordable! Whether you need website creation, SEO enhancement, content production, listing marketing, personal branding development or online reputation management, RealSupport can help you. From the one-time project to ongoing services, we have scalable solutions that are custom-tailored to your needs and budget.
Copywriting & Marketing Specialist