The number of millionaires in Spain to grow by almost 60% in five years

The number of millionaires in Spain to grow by almost 60% in five years

In the period from 2019 to 2020, the number of millionaires decreased by 23%, but in the coming years, the number of Spaniards who have accumulated a fortune of more than one million euros will grow by 58%. These are the data of the Wealth Report, prepared by Knight Frank, which analyzes the preferences of customers in the luxury real estate sector.

The report predicts that after a lull in a number of countries around the world and restrictions imposed to combat the pandemic, investment will recover. "This year's forecast expresses optimism about the emergence of a new economic cycle and sets new expectations for the world after the pandemic," it adds. The happy twenties will undoubtedly be for the rich.

The number of ultra-rich people in Spain, people who have accumulated a fortune of more than 30 million euros, will grow by 39% in the period up to 2025. Like the number of millionaires, it will be several times higher than the global average. There will be 41% more millionaires worldwide in five years, and the number of ultra-rich will be 27% more than in 2020.

So, in Spain, the number of millionaires will increase from 886,014 to 1.39 million. The number of ultra-rich will grow from 5,938 to 8,223 in 2025. During 2020, the number of millionaires in the world decreased by 2%, and the number of ultra-rich-by 8%. In other words, the decline in Spain was more significant, but the increase in their number in the next five years will be more significant.

The document notes that the real estate sector will become a key investment object for these people in the coming months. In fact, 25% intend to invest in the real estate sector this year. Moreover, they do not avoid trends, and 45% will take into account the criteria.

Luxury real estate has not been affected by the crisis caused by the coronavirus. According to the report, in 2020, the residential industry increased its prices by 1.9% worldwide. According to The Wealth Report, this trend will continue this year, as 26% of ultra-rich people plan to buy a house in 2021.

"Low mortgage rates, record lows in some markets, the search for space and privacy after self-isolation, as well as changes in the structure of mobility have contributed to the price growth that we have seen this year in first-class new buildings," explains Liam Bailey, head of global research at Knight Frank.

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