A report by a London based real estate consultancy firm Knight Frank has revealed that due to global uncertainty, energy crisis and geopolitical situations , the World’s richest people have lost a cumulative wealth of $10 trillion or 10% from their new worth.
World’s richest people lose cumulative wealth of $ 10 Trillion in 2022
According to the report, the wealthy people in Europe were at the center of the crisis and they lost an average of 17% from their fortunes. While the Australian region recorded 11% drop and America’s shed 10%. However, in comparison, Africa witnessed the smallest decline with 5% , followed by Asia and Middle East at 7%.
The Ultra High Net Worth Individuals (UHNWI’s) are those who possess a net worth of $30 million or more.
Liam Bailey, Knight Frank’s Head of Research stated,
“The fall in wealth is unsurprising given the dramatic pivot in monetary policy that culminated in the worst performance for the traditional blended portfolio since the 1930s,”
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Global economic uncertainties
Further Bailey added that Global economic uncertainty has been caused by Ukraine War and high inflation,
“The Ukraine crisis fuelled the European energy crunch and supercharged already surging inflation. As a result, 2022 saw one of the sharpest upward movements in global interest rates in history, leading to economic conditions that Collins English dictionary neatly dubbed the ‘permacrisis’,”.
Despite, 40% of the UHNWI’s recording an increase in their net worth in 2022, the overwhelming trend however was negative for world’s super rich , driven by a change in residential and commercial property values, fixed income , investments of passion and other assets.
Inspite of global meltdown in the wealth of world’s wealthiest people, an interesting development highlighted in the report, revealed that ultra-luxury properties changed hands more frequently. Houses over $ 25 million changed hands 43 times.
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