LONDON, Sept. 17,
2024 /CNW/ -- There are currently 29,350 individuals
worldwide with liquid investable assets of USD 100 million or more, according to the
Centi-Millionaire Report 2024 released today by wealth and
investment migration advisors Henley & Partners.
This exclusive club has grown globally by 54% over the last
decade, with America and China
experiencing a centi-millionaire boom, significantly outperforming
their European counterparts.
China's ascent has been the
most dramatic, with its centi-population expanding by 108% over the
past 10 years — outpacing even the US, whose super-rich ranks
swelled by 81% over the same period. In contrast, Europe's centi-millionaire growth has been
anemic, increasing by only 26% over the past decade.
Dr. Juerg Steffen, CEO of Henley
& Partners, says the lethargic performance is due to slow
growth in major markets such as the UK, Germany, and France. "Pockets of dynamism exist, with
smaller European markets such as Monaco, Malta, Montenegro, and Poland seeing their centi-millionaire
populations surge by 75% or more. The geography of extreme
affluence is shifting. As this elite group continues to grow and
migrate, its influence on global economics, politics, and society
is likely to be profound and far-reaching."
America's dominance hangs in the balance
The report reveals that one-third of the world's
centi-millionaires reside in 50 key cities across the world. The US
continues to dominate the centi-city landscape, claiming
1st, 2nd, and 3rd places in the
Top 50 Cities for Centi-Millionaires, and boasting a total of 15
metropolises on the elite list.
New York City reigns supreme
with 744 resident centi-millionaires, followed closely by the Bay
Area with 675, and Los Angeles
with 496 super rich residents.
However, as David Young from the
US think tank The Conference Board points out, "existing
centi-millionaire growth and migration trends will depend largely
on the upcoming US presidential elections where we anticipate
drastic differences in fiscal, monetary, economic, and social
policies. The results may cause a shift from North America being so attractive, as centis
turn to countries that provide greater economic and political
security".
Dr. Steffen adds that wealthy Americans have become the firm's
single largest client cohort, with a five-fold increase in
investment migration enquiries this year. "We are witnessing a
fascinating paradox. On one hand, the US remains the world's top
wealth hub, accounting for over 30% of global liquid investable
wealth — a massive USD 67 trillion. Yet, on the other hand,
we're seeing an unprecedented surge in affluent Americans seeking
alternative residence and citizenship options."
Democratic presidential nominee Kamala
Harris recently endorsed the tax increases proposed by
President Biden in his fiscal year 2025 budget — including a new
idea that would require taxpayers with net wealth above
USD 100 million to pay a minimum tax
on their unrealized capital gains. However, as Director of Tax
Services at Henley & Partners, Peter
Ferrigno, warns, "any proposal that deviates too far from
accepted international tax principles of only taxing realized
income would lead to people looking very carefully at the US as a
place to invest in. Taxing an unrealized gain on the way up
looks great, but the optics of handing billionaires
tax refunds in the following year when those unrealized gains
reverse, looks terrible. Handled poorly, this can look like a
bailout for the rich when their stock prices fall."
Asia's rising influence as
Europe falls behind
Four Asian cities and territories are now among the world's Top
10 centi-millionaire hotspots. Beijing sits in 5th position
worldwide with 347 centis, while Singapore follows closely in 6th
place with 336. Shanghai is in
7th place with 322 centi-millionaires and Hong Kong ranks 8th, boasting 320
ultra-wealthy residents.
Both Singapore and Hong Kong are forecast to enjoy exceptionally
high centi-millionaire growth rates of over 100% in the next decade
and a half (to 2040).
However, London, once
considered the financial capital of the world, now ranks just
4th in the Top 50 Cities for Centi-Millionaires with 370
super-rich residents and a lackluster forecast of less than 50%
when it comes to centi growth over the next 16 years (to 2040).
Finally. Paris claims
the10th spot on the latest centi-rich city index with
286 ultra-wealthy residents.
Centi city hotspots to watch
Looking ahead to 2040, several Asian and Middle Eastern cities
are poised for explosive growth, with Hangzhou, Shenzhen, Taipei, Dubai, and Abu Dhabi projected to see increases of over
150% in their centi-millionaire communities.
Emerging markets are also set to make their mark. Riyadh in Saudi
Arabia and Bengaluru in India are both forecast to enjoy growth of
over 150% in their centi-populations over the next 16 years.
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SOURCE Henley & Partners