Almost 12,000 new ultra-high-net-worth individuals (UHNWIs) were created in Asia last year, while, the region’s emerging markets look set to underpin and expand this growth in the coming five years, according to Knight Frank’s Wealth Report 2020,

Backed by strong real estate markets in the region, Asia’s population of UHNWIs, those with a net worth of over US$30 million or more, increased at a rate that outpaced other world regions.

In 2019, Asia’s UHNWIs increased by 11,800, up 13%, to bring the total population in the region to 103,000 individuals. North America, where the largest proportion of the world’s wealthiest reside, registered a 6% increase in UHNWIs in the last year, while Europe lagged behind at 4%.

South Korea led the region with a growth rate of 22% of UHNWIs between 2018 to 2019, while Japan registered a 17% growth, followed by China with 15%.

Powered by the rapid rise of their middle classes, emerging markets such as China, India, Indonesia, Malaysia, and Vietnam are set to overtake the growth rate of UHNWIs seen in the mature wealth hubs of Japan, Singapore and South Korea.

By 2024, the number of UHNWIs around the world is predicted to grow by 27%, taking the population to just under 650,000. Asia’s position as a wealth hub will grow in this period, with a five-year forecasted growth of 44%, outperforming Europe, though still trailing North America’s UHNWI population.

As with the next generation of wealthy in Asia, sustainability and wellness is also increasing among the region’s UHNWI real estate investors.

As part of the report Knight Frank surveyed about 620 wealth managers globally. Seven out of 10 wealth advisors in the Asia-Pacific said wellness is an important consideration for their clients. Wealth managers were also asked about the attitudes of their UHNW clients towards the impact of their investments. 

The report said wealth managers' clients are increasingly concerned about the impact of the buildings they invest in on the wellness of their occupants. And clients are increasingly concerned about the impact of the buildings they invest in on the wider environment.

However, when asked whether UHNWIs were increasingly looking to invest in companies that could profit from the wellness trend, the results pointed to a lag in adoption.

On average across the globe, 44% of the wealthy are interested in investing into businesses that could benefit from the wellness trend. When asked whether they are increasingly concerned about the attitudes of companies they invest in towards the wellness of their employees, society and the environment, nearly half (47%) of UHNWIs said this was a concern. 

“This is the very first time we have looked into the attitudes of UHNWIs investing into the wellness sector. Whilst the results show that people are committed to their own personal wellbeing, there is less commitment when it comes to investing in businesses that profit from the wellness trend and investing in companies that prioritize the wellbeing of their employees, society and the environment,” says Liam Bailey, Knight Frank’s global head of Research.