Previous editions of The Wealth Report have examined, in detail, worldwide migration patterns for the wealthy. While these permanent movements of people are critical in driving residential property investment, seasonal and temporary movements are also instrumental in boosting demand for second-home purchases, reinforcing the appeal of one location over another.
To illustrate these trends, we have teamed up with NetJets and WINGX to reveal how global sporting, art and business events create private-jet hotspots. Data from New World Wealth highlights the seasonal ebb and flow of wealthy individuals in first and second-home locations around the world. The list of private-jet clusters is dominated by European and US events, mainly due to the maturity of private aviation in these markets. As Asia and other markets mature, further events are likely to join the list.
There has also been something of a rebound in high-end tourism to the Greek islands and increasing VIP travel to resorts in Turkey
Private aviation is still emerging in the region and private jet operators are slowly increasing their operations. “Events such as Art Basel Hong Kong will certainly attract a specific clientele who choose to fly privately, with a view to purchasing artwork,” says Marine Eugene, Head of Sales at NetJets Europe.
In terms of growth locations in Europe, last year saw strong growth for some Mediterranean resorts, especially the Ibiza season, says Richard Koe, Managing Director of business aviation specialist WINGX Advance.
“There has also been something of a rebound in high-end tourism to the Greek islands and increasing VIP travel to resorts in Turkey. In the future, Istanbul should be an increasingly popular host-location for VIP events, such as boat shows and Grand Prix, but everything is contingent on the security situation,” he adds. “Elsewhere, Brazil should have exciting long-term growth in terms of private jet demand with a boost from the Rio Olympics later this year.
The question is whether that leads to sustainable growth. The Beijing and Sochi Olympics saw a surge of private jet activity during the event, but the China and Russia business jet market has subsequently declined. “In the Middle East we expect to see more activity for events in the UAE – especially Dubai, Sharjah and Abu Dhabi – but the 2022 Qatar World Cup will boost activity as well,” says Mr Koe.
We have also drilled into city-level wealth using data from New World Wealth, to understand highs and lows in the population of wealthy individuals across key markets globally, month-bymonth through the year. While it is not surprising that traditional second-home markets, such as The Hamptons in the US and Cape Town in South Africa, experience wide fluctuations in their populations of HNWIs through the year, there are also big fluctuations in some of the key global hubs.
In London and Paris, for example, the peak-season population of those with net assets of over $10m is more than double seasonal lows. Los Angeles is the most “stable” market, according to our data.