The number of ultra-wealthy people rose significantly in 2021 and the numbers are slated to keep rising, the firm said in its annual overview of wealth and the drivers of new money.

The world’s population of ultra-high net worth individuals – those with $30 million or more – expanded by 9.3 per cent last year, accelerating from a 2.4 per cent growth rate made during the pandemic-hit year of 2020, real estate consultants Knight Frank said.

The figures, which come from Knight Frank’s annual wealth report, also point to Asia being on track to overtake Europe as the second-largest wealth management market behind North America. This development, echoed in other global reports from groups such as Capgemini, explains why so many Western banks have built private banking and wealth businesses in Asia, even at a time of US-China tensions on trade and other issues.

The firm’s Wealth Sizing Model, which it uses to make forecasts, leads it to predict that between 2021 and 2026 the global UHNW population will grow by a further 28 per cent. Over the ten years to 2026 that represents a more than doubling in the number of global UHNW individuals – from 348,355 to 783,671. 

Knight Frank said that its Attitudes Survey, taken from wealth advisors and private bankers, showed that 82 per cent of them said that clients’ wealth had increased in 2021, with more than half describing the rise as “significant” (defined as more than 10 per cent). Over the past five years, the previous optimism peak was in 2017 when 72 per cent of respondents to the survey said that clients’ wealth had increased. The world’s UHNW population grew by 10 per cent, benefiting from broadly benign economic conditions. 

Although economic conditions have changed as a result of the pandemic, the only region to see a decline (-0.8 per cent) in its UHNW population was Africa. 

“Asset price rises, from property markets to stock markets to luxury collectibles, have all helped to boost the fortunes of those wealthy enough to hold investment portfolios,” the report said.

The top five gainers for UHNW individuals, in absolute terms, were the US, the UK, France, Japan and the Chinese mainland. Equity markets drove some of the shifts: the French CAC 40 rose by around 30 per cent during 2021, the US S&P 500 rose by more than 25 per cent and the UK FTSE 250 rose by around 15 per cent.

Knight Frank was understandably pleased that its survey showed that, on average, just shy of two-thirds of UHNW wealth is allocated to property. Just under a third of total wealth is held in principal and second homes, while the remainder is invested directly or indirectly (through real estate investment trusts (REITs), for example) in investment property.

By 2026, Knight Frank reckons that Asia will surpass Europe as the second largest regional wealth hub. During that time it predicts, for example, that Singapore will have witnessed a 268 per cent growth in its UHNW population to around 6,000. However, 10-year growth is led by Australasia. The region’s UHNW population, led by New Zealand (from 1,249 to 4,618), is expected to more than treble by 2026, it said.

Among other details, Knight Frank said it estimated that 129,557 UHNW individuals were self-made and under the age of 40; almost a fifth of the total population.

"North America, with 44,751, has the largest cohort, but Asia’s marginally lower total of 44,565 accounts for a higher proportion – 26 per cent – of the region’s super-wealthy," it said.

The report said that Russia "boasts the highest relative number of next-gen wealth creators, with 45 per cent (2,923) of its UHNWIs falling into the category" – these figures were captured before the massive economic sanctions were imposed on Russia a few days ago for its  invasion of Ukraine.