THE GLOBAL PERSPECTIVE ON PRIME PROPERTY AND WEALTHthewealthreport2014KNIGHTFRANK.COMTHE WEALTH REPORT 2014Written by Knight Frank ResearchPublished on behalf of Knight Frank by Think The Pall Mall Deposit 124-128 Barlby Road London W10 6BLDEFINITIONS UHNWI Throughout this report, we use UHNWI as an abbreviation for ultra high-net- worth individual. Unless otherwise stated, a UHNWI is defined as someone with US$30m or more in net assets excluding their principle residence. PRIME PROPERTY The most desirable and most expensive property in a given location. Prime markets often have a significant international bias in terms of buyer profile. FOR KNIGHT FRANK Editor Andrew Shirley Global Head of Research Liam Bailey International Research Co-ordinator Kate Everett-Allen Asia-Pacific Research Nicholas Holt Marketing Susie Cain Research enquiries liam.bailey knightfrank.com Media enquiries john.williams knightfrank.comFOR THINK Managing Editor Louise Bell Art Director Darren Endicott Account Director Rachel Walder Managing Director Polly ArnoldCover illustration Cristiano Rinaldi Information graphics Paul Wootton Portrait illustrations Lauren CrowPRINTING Printed by Pureprint Group LtdThe Wealth Report: winner of the International Content Marketing Award 2013 for Best Specialist CommunicationWelcome to The Wealth Report, Knight Franks annual commentary on global prime property markets, wealth distribution and investment sentiment. As the worlds largest independent property consultancy, Knight Frank works with UHNWIs and their advisors through a network of 330 offices across 48 countries. This makes us uniquely placed to provide advice on all aspects of development and investment across the globes key residential and commercial markets. Over the past eight years, against a backdrop of unparalleled economic instability, The Wealth Report has documented the performance of prime property in the most sought-after international locations. Our experts, led by Knight Franks unrivalled global research team, have explored the latest trends, pointed to current opportunities and highlighted some longer-term plays. I am especially pleased that this years report features contributions from leading commentators, including: Sir Richard Branson; Dr Pippa Malmgren, former economic advisor to US President George Bush; entrepreneur and philanthropist Lord Harris of Peckham; leading Malaysian industrialist Tan Sri A K Nathan; Laurent Perignon, CEO of luxury yacht business Camper and James Lawson, founding director of Ledbury Research. The biggest trend to emerge from this years report and one that is underlined by our revealing interviews with leading developers such as Indias Abhishek Lodha and Australias Lang Walker is the increasing globalisation not only of property investment, but also of funding and development. This trend is reflected by Knight Franks strategy of offering a full range of residential and commercial services and expertise in the locations where our clients want to invest, not just now but in the future too. Over the past 12 months, Knight Frank has opened an additional six international offices, and strengthened its presence in four further markets. We have consolidated our strategic partnership with Sumitomo Mitsui Trust Bank in Japan and expanded our presence in South Africa, with new offices across the Cape and in Johannesburg. We have also entered into a strategic relationship in Canada, providing our clients with access to the important Vancouver market. Knight Franks objective to provide clients with a single platform for viewing the worlds best residential and commercial property opportunities has been reinforced by the translation of our Global Property Search website into 16 languages. This market-leading initiative makes our clients key assets more accessible to an increasingly global investor base. I hope you enjoy reading the eighth edition of The Wealth Report. If you have any queries please do contact me or any member of The Wealth Report team. We will be delighted to help.CONTRIBUTORSANDREW SHIRLEY Editor of The Wealth Report, Knight Frank LIAM BAILEY Global Head of Research, Knight Frank GRINNE GILMORE Head of UK Residential Research, Knight Frank JAMES ROBERTS Head of Commercial Research, Knight FrankANDREW HAY Global Head of Residential, Knight Frank andrew.hayknightfrank.com +44 20 7861 1071WELCOMET26 Executive summary8 Access all areasAn overview of our annual Attitudes Survey and an introduction to our new Wealth Panel16 All changeThe shifting patterns of global wealth distribution 26 World in motionThe metropolises that matter to UHNWIs, according to our Global Cities Survey32 Moving on upInside luxury global property markets with our Prime International Residential Index 42 Beyond the turning pointThe new spirit of adventure emerging among comme