Wealth of ‘super-rich’ Spaniards drops dramatically 

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Ultra-high-net-worth individuals in Spain experienced a decrease of 11.5 per cent in their wealth in 2022

According to Knight Frank’s Wealth Report, the population of individuals with an ultra-high net worth (more than $30 million dollars or €27.73 million) in Spain witnessed a significant decline of 11.5 per cent in 2022 compared to the previous year.

With the overall global fall being 3.8 per cent, Spain hasn’t faired too well on the world stage. The decline follows a record-breaking growth of the ultra-rich in 2021 when their numbers surged by 9.3 per cent. With 2021 possibly an anomalous year, this would make last year’s fall less stark.

Knight Frank, the renowned real estate consultancy based in London, highlights that the minimum wealth required to enter the exclusive “one per cent” club of the richest individuals varies across countries. In the case of Spain, one must possess at least €2.3 million to join this esteemed group of super-rich.

The report further reveals that the overall wealth of the ultra-high-net-worth population also experienced a notable 10 per cent decline last year. This decline can be attributed, in large part, to the poor performance of investors’ portfolios, particularly traditional stocks or bonds.

According to Knight Frank, Spanish investors typically make one-time investments ranging between €15 and 25 million euros. Madrid, being a European capital, offers relatively lower prices compared to other European cities, while also displaying future potential for rental growth.

Over the past five years (2017-2022), the number of ultra-rich individuals worldwide has seen a remarkable growth of 44 per cent but this is predicted to fall. Europe emerged as the most affected region in 2022, witnessing an 8.5 per cent decline in the ultra-rich population. Only a few nations, such as Ireland saw growth.

Asia also experienced a decline of 6.5 per cent in the ultra-rich population, but it boasted three of the top ten countries with the highest growth rates. Malaysia, Indonesia, and Singapore witnessed growth rates ranging from 7 per cent to 9 per cent.

Meanwhile, the Middle East showcased the most prominent regional growth in the ultra-high net worth population, with a remarkable 16.9 per cent increase, primarily driven by the United Arab Emirates (18.1 per cent) and Saudi Arabia (10.4 per cent), which exhibited stellar economic and housing market performance.

Africa demonstrated resilience in 2022, with a growth rate of 6.3 per cent in the ultra-rich population. On the other hand, Australasia and the Americas remained relatively static, with growth rates of 0.7 per cent and 0.2 per cent, respectively.

While Australia experienced a 2.1 per cent growth in its ultra-rich population, the United States witnessed a slight decline of 0.8 per cent to reach 203,338 individuals.

Looking ahead, the countries expected to witness the highest growth rates in the ultra-rich population over the next five years are primarily European and Asian economies. Growing economies such as Hungary and Turkey are expected to lead the pack.

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Written by

David Laycock

Dave Laycock has always written. Poems, songs, essays, academic papers as well as newspaper articles; the written word has always held a great fascination for him and he is never happier than when being creative. From a musical background, Dave has travelled the world performing and also examining for a British music exam board. He also writes, produces and performs and records music. All this aside, he is currently fully focussed on his journalism and can’t wait to share more stories from around the world and beyond.