Real Estate Investor Magazine South Africa November 2018

UK WEALTH REPORT Major risks to the UK going forward include: Worldwide stats (for Dec 2017): • Total private wealth held worldwide amounts to approximately US$215 trillion. Around US$75 trillion (35%) of this is held by HNWIs. • The average individual has net assets of US$28,400 (wealth per capita). • There are approximately 15.2 million HNWIs in the world, each with net assets of US$1 million or more. • There are approximately 584,000 multi-millionaires in the world, each with net assets of US$10 million or more. • There are approximately 26,600 centi-millionaires in the world, each with net assets of US$100 million or more. • There are 2,252 billionaires in the world, each with net assets of US$1 billion or more. Distribution of wealth in the UK UK stats (for Dec 2017): • The UK is the 4th largest wealth market in the world (in terms of total wealth held) after USA, China and Japan. Notably, it ranks ahead of Germany on this measure. • UK locals hold US$9.9 trillion in net assets (or wealth). Around US$3.6 trillion (36%) of this is held by HNWIs. • The average UK individual has net assets of approximately US$153,000 (wealth per capita). • There are approximately 827,000 HNWIs living in the UK, each with net assets of US$1 million or more. • There are approximately 26,000 multi-millionaires living in the UK, each with net assets of US$10 million or more. • There are 1,167 centi-millionaires living in the UK, each with net assets of US$100 million or more. • There are 103 billionaires living in the UK, each with net assets of US$1 billion or more. Only three countries worldwide have more billionaires than UK, namely: USA, China and India. Industry breakdown The following table provides a breakdown of the main industries in which HNWIs in the UK have acquired their wealth: • Real Estate research covering the wealth market in the United Kingdom. The report covers wealth trends in the country over the past 10 years, with projections for the next 10 years. Economic review The UK is the 5th largest economy in the world (in nominal GDP terms) with an annual GDP of around US$2.6 trillion – source: Trading Economics. The UK’s main export partners are: USA (14% of total exports), Germany (10%), Holland (6%), France (6%), Ireland (5%) and Switzerland (5%). Major exports include: automobiles, gas turbines and pharmaceuticals. The UK’s US$ GDP per capita declined significantly during the review period, from around US$50,100 in 2007 to around US$39,700 in 2017 – source: World Bank. This drop was mainly due to a significant deprecation of the GBP against the USD over this period. The UK economy is expected to grow slowly over the next 10 years, with annual GDP growth forecasts in the country averaging around 1.7% per annum (source: EIU Viewswire). • Financial & Professional Services • Media • Tech & Telecoms • Retail & Fashion • FMCG • Basic Materials • Manufacturing • Healthcare • Hotels & Leisure • Transport and Logistics Prime real estate The most expensive towns and cities for prime residential property in the UK (measured in US$ per square meter) include the likes of: London, Bray and Henley. Notably, London is one of the most expensive cities in the world to buy prime residential property. The most expensive parts of London are Knightsbridge and Belgravia. It should be noted that London residential prices have SA Real Estate Investor Magazine NOVEMBER/DECEMBER 2018 55

Real Estate Investor Magazine South Africa November 2018 | Page 57