The World's Wealthiest Cities Report 2024 provides a glimpse into the evolving global wealth landscape, shedding light on how investment migration programmes have become instrumental for high-net-worth individuals looking to tap into the world's most promising urban centres.
This is according to Dr. Juerg Steffen, FIMC, the Chief Executive Officer of Henley & Partners.
Leading the roster is the United States, boasting 11 cities in the Top 50 World’s Wealthiest Cities list. Notable among them is New York City, home to 349,500 millionaires, closely followed by the Bay Area in Northern California (305,700) and Los Angeles (212,100).
China also makes a significant mark, with 5 cities in mainland China and a total of 7 including Hong Kong (SAR China) (143,400) and Taipei (30,200).
Over the past decade, cities like Beijing (125,600 millionaires), Shanghai (123,400), Shenzhen (50,300), Guangzhou (24,500), and Hangzhou (31,600) have witnessed substantial increases in their millionaire populations, underscoring China's growing economic prowess.
This dynamic mirrors broader shifts in the global economy, with the US maintaining its traditional strongholds while China's rapid urbanisation and technological advancement play increasingly pivotal roles in wealth generation, said Steffen.
"As the wealthy become more mobile and discerning in their choice of residence, cities must adapt and innovate to stay ahead of the curve. Investment migration programmes, such as those offered by 7 of the world's Top 10 Wealthiest Cities, are becoming an essential tool in the increasingly competitive fight for global talent and capital."
Europe, despite recent challenges, remains a bastion of wealth and luxury, with 15 cities in the Top 50. London (227,000 millionaires), Paris (165,000), and Geneva (79,800) are among the notable destinations, continuing to allure the global elite with their rich history, cultural heritage, and financial sophistication.
Switzerland, in particular, stands out as a haven for the wealthy, boasting a favorable tax regime, political stability, and a reputation for discretion. Geneva and Zurich have both seen steady growth in their millionaire populations, up 36% and 20% respectively over the past decade.
In Asia, the wealth landscape presents a mixed picture. Tokyo, despite a 5% decline since 2013, retains its position as the world's 3rd wealthiest city with 298,300 millionaires.
In contrast, Osaka has witnessed a significant 12% drop, bringing its millionaire count down to 43,100.
These figures mirror Japan's broader economic challenges, including an aging population and stagnant domestic market. However, Singapore has emerged as a formidable challenger, witnessing a 64% surge in millionaires over the past decade, solidifying its status as a global wealth hub with 244,800 affluent individuals.
Australia has also attracted its share of wealthy individuals, with 4 cities in the Top 50. Sydney (147,000 millionaires), Melbourne (97,900), Perth (33,600), and Brisbane (27,200) benefit from their proximity to Asia, resource-rich economy, and high quality of life. S
ydney, in particular, has established itself as a global city with its iconic harbor, renowned universities, and thriving tech sector, witnessing a 34% growth in its millionaire population over the past decade, said Steffen.
While Africa and South America are absent from the Top 50 Cities for Millionaires, several emerging cities show promise as potential wealth hubs in the future.
Nairobi, Kenya's bustling capital, has seen a 25% increase in millionaires over the past decade, driven by its thriving tech ecosystem and expanding middle class.
Similarly, Cape Town, South Africa's coastal gem, has experienced a 20% rise, attracting 7,400 millionaires drawn to its picturesque beaches and vibrant cultural scene.
"A key factor has been the strong performance of financial markets in recent years. The S&P 500's 24% gain in 2023, along with the Nasdaq's 43% surge and Bitcoin's staggering 155% rally, have buoyed the fortunes of wealthy investors," said Steffen.
The easing of inflationary pressures, with global inflation falling precipitously since 2022, has further boosted confidence and spending. Additionally, rapid advancements in artificial intelligence, robotics, and blockchain technology have also created new opportunities for wealth creation and accumulation.
"Yet even as new opportunities emerge, old risks persist. The war in Ukraine, which has seen Moscow's millionaire population plummet by 24% to 30,300, is a stark reminder of the fragility of wealth in an uncertain and unstable world."
The World's Wealthiest Cities Report 2024 offers investors insights into this intricate and evolving landscape, showcasing a world where traditional wealth centres maintain their prominence while new hubs emerge on the global stage.
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