The Big Change: How will the Next Generation disrupt future wealth trends?

For the first time, Knight Frank examined the size of the ‘Next Generation’ or ‘Next Gen’ of the world’s ultra-high-net-worth-individual (UHNWI) population and assesses what that could mean for property markets.

Well-travelled and digital natives, this generation is known to be more global and tech-savvy than previous cohorts of UHNWIs with a more varied set of interests. So, expect to see a greater appetite for investments in the digital ownership as well as cross border property.

Aware of environmental and social issues and its implications, Next Gens can be a force for good as they are also more likely to consider ESG concerns when investing.

Globally, it is estimated that 129,557 UHNWIs are self-made and under the age of 40, around a fifth of the total population. North America, with 44,751, has the largest cohort, but Asia’s marginally lower figure (44,565) accounts for a higher proportion – 26% of the region’s super-wealthy.

However, not all things will change. While a growing number would have made their fortunes on the new economy, physical property will continue to remain a cornerstone in portfolios. In Singapore, tech savvy young UHNWIs are seeking Good Class Bungalows (the pinnacle of the city’s property ladder), often seen as exclusive and a long-term store of wealth. It is also an emphatic statement of their achievements and a great way to leave a lasting legacy.

The popularity arises due to the flexibility to build their own homes which suits their lifestyle, which is an extension of their tastes and vision. These homes often include smart technology, a focus on energy efficiency and connectivity, both digital and physical. 
 
Download the Wealth Report 2022 to read more about the ‘Next Gen’ Wealth. 
 
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