the global perspective on prime property & investment

1 The global perspective on prime property & investment2021 15TH EDITIONTHE WEALTH REPORT 202115th EditionEditorAndrew ShirleyDeputy EditorFlora HarleyGlobal Head of ResearchLiam Bailey Written byKnight Frank ResearchCameron McDonaldJames CulleyKate Everett-AllenPatrick GowerVictoria OrmondMarketingLauren HaaszPublic relationsAstrid Recaldin Sub-editingSunny CreativeDesign & directionQuiddity MediaAdam EvansData visualisationSupermassiveIllustrationBen FearnleyMatt MurphyPhotographyGraham LeePrintOptichromeHow we chose our coverFor this year s cover we started with a notion that of emergence.

2 The past year has been unimaginable in so many ways and we wanted a design that would reflect the impact of the Covid-19 pandemic on all aspects of our lives but also, more importantly, how the world will emerge in a post-pandemic era. The initial concept from our designer Ben Fearnley was of an ancient wall covered in hieroglyphs or, as we have christened them, glyphs. This evolved into a multi-faceted cube a thought-provoking way of showing how the different elements shift and combine to reveal the bigger picture.

3 Every glyph emerging from the tiles relates to a part of the story that we recount throughout The Wealth Report, enabling the reader to follow the journey as we chart the past 12 months and look forward with optimism to the icons have been designed and positioned to help you navigate The Wealth Report 2021 and all of its content: ATTITUDES SURVEY RESULTS ONLINE CONTENT RELATED ARTICLES FURTHER INFORMATIONView The Wealth Report and properties from around the world on your device: and dataUHNWIU ltra-high-net-worth individual someone with a net worth of over US$30 million including their primary residenceHNWIHigh-net-worth individual someone with a net worth of over US$1 million including their primary residencePrime propertyThe most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value.

4 prime markets often have a significant international bias in terms of buyer profile The PIRI 100 Now in its 14th year, the Knight Frank prime International Residential Index tracks movements in luxury prices across the world s top residential markets. The index, compiled using data from our research teams around the world, covers major financial centres, gateway cities and second-home hotspots both coastal and rural as well as leading luxury ski resorts. The Attitudes Survey The 2021 instalment is based on responses provided during October and November 2020 by over 600 private bankers, wealth advisors, intermediaries and family offices who between them manage over US$ trillion of wealth for UHNWI clients.

5 Special thanks to Alfa Bank, Ambit Finance, ANZ Bank Australia, ANZ Bank New Zealand, Bank of Ireland, Bank of Singapore, Barclays Asia, China Banking Corporation, Citi Private Bank, CTBC Bank (Philippines), Dry Associates, Edelweiss, Genghis Capital Ltd, HSBC Singapore, ICEA Lion, ICICI Bank, JB Were, Julius Baer, Kairos Capital Pte Ltd, Maybank Philippines Inc., Motilal Oswal, Nedbank Private Wealth, NCBA Bank Kenya, NH investment & Securities Co. Ltd, RBC Wealth Management, Stanbic Bank Kenya, Sumitumo Mitsui Trust Bank Ltd, TOB Partners Co.

6 Ltd, UOB Private Bank and Westpac for their participation. The Knight Frank Wealth Sizing Model The model, created by our data engineering team, measures the size of HNWI, UHNWI and billionaire cohorts in more than 200 countries and Knight Frank WEALTH REPORT 2021P1 THE WEALTH REPORT 2021 Some of the long-term trends that we examined last year, such as the changing role of the office, have been supercharged by the Covid-19 pandemic. Behavioural shifts we expected to play out over the next five or even ten years have happened in a matter of months.

7 In this edition, using data and insight from our research teams around the world, we endeavour to predict what may come next in residential and commercial real estate markets, in the hope that it will help our clients capitalise on the opportunities that are being created by this acceleration of trends. This year marks the 125th anniversary of the formation of Knight Frank. As a business we have changed radically during that time, growing from our valuation and auctioneering roots in London to become a truly global full-service property consultancy.

8 But we remain true to our core values delivering innovative advice that creates tangible value for our clients, while all the time working responsibly, in partnership, to enhance people s lives and has affected all of us, whether from an economic or personal perspective . The theme of last year s edition of The Wealth Report was wellness . Entirely coincidental, but with hindsight eerily prescient looking after our health and that of our families has never been more important. I hope you are managing to stay safe through the pandemic, and I wish you all the best during the remainder of 2021.

9 Do let us know if the Private Office or the wider Knight Frank network can help in any delighted to welcome you to the 15th edition of The Wealth Report. Since the report was first published it has chronicled a period of radical change. Donald Trump, then just a property developer, was one of our very first interviewees. We all know what happened next. The global financial crisis swept over us. The world adapted and I can honestly say that during my career in property , I have never seen things changing as quickly as they are now.

10 On this page 12 months ago I predicted that we were at the start of the new Roaring Twenties . Little did I know quite what lay around the can honestly say that during my career in property , I have never seen things changing as quickly as they are nowIRORY PENN HEAD OF KNIGHT FRANK PRIVATE OFFICEW elcomeTurn to page 54 for expert insight on global property markets from Rory and the Knight Frank Private Office teamP2 THE WEALTH REPORT 2021 Contents1100*Notes: Price changes are measured in local currency and relate to the period between 31 Dec 2019 and 31 Dec 2020 unless otherwise stated.