The Global Wealth & Luxury Report by Accouter

DATALOFT, MODERN HOUSE WEALTH-X

THE GLOBAL WEALTH & LUXURY REPORT DESIGN VALUES Globally, the number of High Net Worth Individuals is rising, as is the demand for luxury products and services. The market is however changing, with purchasers open to exploring new channels in their search for products which reflect their individuality and ethos.

As part of the Accouter Group of Companies, international award-winning Accouter has turned exclusive spaces into exceptional homes for high profile individuals around the world.

BAIN

WELCOME WORDS BY PRIYA RAWAL, FOUNDER OF THE LUXURY PROPERT Y FORUM

I am delighted to welcome you to the first Global Wealth and Luxury Report from Accouter in partnership with The Luxury Property Forum.

There is no doubt that the global pandemic has touched every one of our lives. It has, of course, been difficult, however even out of such adversity, the world has adapted and survived.

Some priorities have shifted, yet many have remained the same. One constant is the way in which Ultra High Net Worth Individuals (UHNWIs) approach their luxury investments.

They want the “ultimate best”. Certain principles such as status, creativity, authenticity, and exclusivity remain crucial pillars of luxury.

However, in the wake of our global experience, what makes up the “ultimate best” has somewhat altered.

The growing importance for personal experiences is key for luxury consumers, whether it be for products and services or property and travel. Further, there is now an increasing demand and desire to invest, build and live better. Sustainable luxury, which is socially and environmentally responsible, is no longer a passing trend but a necessity. In the wake of the pandemic, it is unsurprising that the emphasis on health and wellness is more important now than ever before. UHNWIs are discerning and mindful with their investments, and the definition of luxury gets more subjective every day.

There are now more UHNWIs than ever before, with over 25 million millionaires worldwide. The rise in private wealth amongst the Millennials and Generation Z has the potential to reshape luxury for the future altogether. The new wave of multi-millionaires are cash-rich but time-poor, and delivering

luxury as efficiently as possible is essential. The impact of technology and the digitalisation of the sector means that the world of luxury is moving at a much faster pace. The agile and adaptable brands will excel. With the power of social media and influencer mentality, luxury brands need to bring something unique to the table. Whilst there will be challenges, it will also allow for innovation and creative thinking.

The growth of global wealth is fuelled by its international nature. Even though such tremendous wealth is coming from all over the world and new epicentres are growing rapidly, much of this growth is in Asia, particularly China. With the lack of international travel posed by the pandemic, there is now a pent-up demand for luxury, and this surge in activity has been seen across the industry. However, the barriers on trade have indeed been an obstacle for luxury products, and in the wake of Brexit, there has been a significant shift in “buying local” in the UK, with many luxury brands supporting British suppliers and craftsmen.

This report will uncover: The effect of global wealth on the industry; The obstacles the industry has and will face over the next five years; and The most significant trends effecting the industry.

WHAT WILL BE THE EFFECT OF GROWTH IN GLOBAL WEALTH ON THE LUXURY MARKET? INTRODUCTION BY ACCOUTER

As global wealth continues to increase, the demand for all luxury markets will continue to grow, and as Ultra High Net Worth (UHNW) consumers start to get younger, the value of an item is set to be perceived differently. Historically, it could be said that luxury e-commerce was met with a degree of scepticism. But this is changing, and luxury retail and a growing number of pioneering platforms such as NET-A-PORTER are revising the luxury consumer’s thinking. This trend has only amplified since the pandemic, and industries that might have been previously lagging are now excelling. An excellent example of this is the world of Super-Prime Real Estate, where UHNWIs have been forced into purchasing properties, sometimes worth 10s of millions, without ever stepping a physical foot into the space. Instead, the industry must quickly adapt, as evidenced by the considerable investment into PropTech and various new platforms we have seen emerging, something that Accouter Group of Companies (AGC) has also invested in with the launch of their luxury online marketplace, Bazaar. It will be interesting to see if this pattern continues across the luxury space and has a lasting impact, or whether we will see buyers reverting to the more intimate nature of face-to-face sales once the pandemic ceases to be a dominant driving factor in an individual’s decision making.

With over 25 years of estate agency experience in the Super-Prime, traditional and modern, residential property market of Central London, Charlie Willis CEO of The London Broker explains “Since the beginning of lockdown in the UK alone, a further 24 billionaires have been created taking the total on these shores to 171. That’s only 0.6% of the supposed global total of 2,755 with a total net worth of $13.1 tn – 660 more since 2020 and 86% of all of them have created more wealth than they possessed last year too.

According to the Hurun Global Rich List 2021, Greater China has 1,058 billionaires with another 696 residing in the United States.

In general, billionaires like to be seen to be doing good.

Philanthropy now includes giving money to research, trying to halt the spread of COVID-19, finding ways to help climate change, and being seen to be making a difference on the green agenda.

The rise in younger billionaires enables a far more relaxed approach and “unique, personal experiences” have become as important as possessions. Sometimes the simpler the experience the better – a return to nature and back to basics, delivered perfectly.”

Becky Fatemi, Founder of Rokstone, one of London’s fastest-growing estate agencies specialising in premium residential property in the capital’s superior addresses, priced

“

Consumer demand is pushing brands to tackle their sustainability credentials head-on.

”

up to £100m, states “Generation Z are intrigued and are motivated by the pursuit of experience. Therefore, we will see sales volumes rise at a pace in the new emerging wealth hub once the shackles are off. The Millennial and Generation Z affinity with the natural environment too will result in a surge in sales in coastal and rural enclaves, wine regions, ski resorts and islands. In addition, technology-enabling remote working will mean buyers will spread their wings.

However, simultaneously post-pandemic uncertainty and

political instability in the Middle East, with the abandonment of Afghanistan unsettling the region, will drive a flight to quality to the leading cities, which are still seen as the world’s safe-havens. As hospitality and leisure reopens in earnest, UHNWIs will also return to prime locations over square footage in the super leafy suburbs of London, New York, and Paris.

As a result of these two trends running concurrently, propelled by the return of international travel, we will see values rise across the global luxury residential property market in both core and emerging luxury markets. Furthermore, expect personal and corporate property portfolios to be more diverse.”

Leading independent buying agency, Black Brick Property Solutions LLP provides expert advice to buyers in London, the Home Counties and the Southeast. Camilla Dell, Managing Partner of Black Brick Property Solutions LLP explains, “Put simply, increased demand for the best. UHNWIs have always gravitated towards purchasing real estate in the best cities in the world, London, New York, Paris, Miami, Sydney, Singapore.

This will not change, however, what they buy and possibly where they buy within these cities may change.”

Knight Frank LLP estate agency who are based in London are one of the world’s largest global property consultancies.

Nick Beckett, Associate of Knight Frank, adds, “Global wealth is coming from a variety of countries. Extreme wealth seems to wish to live in key, secure cities, have a good education, and where money can be spent on fine dining, world-class shopping, and access to travel globally with ease.

I, therefore, expect demand for turnkey, extremely high-end finished apartments and houses in key neighbourhoods in London.”

With an insight into the luxury furnishings sector, Bazaar is a multi-brand, one-stop e-commerce destination for luxury furnishings. Stella Gittins, Group Director & Co-Founder of Bazaar, says, “Customers are starting to look for timeless heirlooms instead of fast furniture as we all start to become more switched onto the needs of the planet. Antiques and original pieces which become legacy items passed through generations or held onto as an investment will be more in demand than ever. Bazaar is commencing a never-ending journey towards sustainability through B Corp certification, and we are committing to being accountable for our eco and social impact through initiatives with our teams, supply chain and the communities we encounter. We believe that this transparency is just as valuable as the make-up of the individual products we sell and being able to get behind our quest with a true passion we hope creates a valued authenticity.”

Adding to Gittins, Sarah Curtis from one of the largest property consultancies in the UK, Strutt & Parker, enlightens “Sustainability has risen up the agenda in pretty much every walk of life in the past decade, but public awareness and focus has been significantly heightened over the last 18 months by the pandemic. Although a mass generalisation, there is evidence to suggest that as Millennials and Generation Z claim more and more purchasing power within the luxury sector, consumer demand is pushing brands to tackle their

sustainability credentials head-on. Given that the growth in global wealth has also resulted in a huge growth in global wealth disparity, this trend towards sustainable luxury could not be more called for.”

Whereas, for the likes of The London Management Company, a personalised management services for luxury Prime and Super Prime properties in London and Surrey, the pandemic is set to have a lasting effect. James Robotham, Associate Director of The London Management Company (TLMC) explains, “There has been a significant decrease in stock market valuations globally, and we expect the next 5 years will show significant growth and huge wealth creation. This will directly impact all global luxury markets, particularly on safe havens for wealth such as Prime Central London (PCL) property. This year, we have seen an unprecedented increase with demand for our Super-Prime property management services in PCL and Surrey and expect the demand to continue.

In addition, we have seen a trend towards wealth from the tech industry, with a high number of billionaires looking to either live permanently or simply own a trophy home in PCL and take advantage of the currently subdued Central London market. These UHNW property owners generally have several assets globally and therefore require a bespoke and personal property management solution, ensuring that the asset is kept in the best condition possible and at a constant state of readiness pending their arrival.

We have already seen significant assets such as one property we manage at Rutland Gate, creating a new “giga-prime” market sector with the post-works valuation predicted to exceed £500m. We expect this trend to continue in line with the superyacht mentality ‘my boat is bigger than yours’.”

Lodha UK Developers LTD is one of London’s most active prime residential property developers with £1.9bn of properties under development or completed. An established and influential presence in the global property market, Philippa Bomley-Martin, Senior Manager Sales, Lodha Developers UK LTD, adds to Robotham, “Global wealth is more prevalent than ever as a direct result of the pandemic due and is projected to continue rising over the next 5 years (by 39% according to Credit Suisse’s latest report). Moreover, with various lockdowns and reduced consumption, there is pent-up demand which transfers to the property market as people’s needs evolve due to lifestyle changes.”

Elsewhere, for award-winning luxury travel companies such as Abercrombie & Kent, Group Managing Director, Kerry Golds says, “As we emerge from the pandemic and a year stuck indoors, many people have been reminded that the freedom to travel is not guaranteed and is, in fact, a privilege which we often took for granted. The transformative power of travel is something that many have sorely missed. With the growth in global wealth, not only will people seek to make up for lost time, travelling more or for longer periods. They are also willing to spend more to guarantee the quality of the personalised experiences that makes travel so memorable and meaningful.”

Since 2007, Cult Wines has provided market-leading fine wine investment and collection management services

to a global audience within the luxury goods sector.

Oakley Walters, Global Marketing Director of Cult Wines, explains, “Growth in personal wealth is making a positive impact on the fine wine market. As more people build up savings, demand for fine wine as both a collectable luxury product and a long-term investment choice should increase.

Fine wine markets should see healthy price growth as supply will remain relatively stable despite rising demand.

Only specific vineyards in certain wine-growing regions have the necessary qualities and recognition for producing top quality wines, and volumes are strictly controlled by the various Appellations d’Origine Contrôlée in France and their equivalent in other countries. The growth of global wealth should continue to exert upward pressure on fine wine prices.”

Looking at the global changes, “In certain European and international markets, the influx of wealth vs the availability of prime luxury properties is starting to become evident. The disparity between the two will become an increasing issue in the years to come due to the lag in prime residential developments and ‘best in class’ properties becoming available.

Competition between buyers in the luxury segment is increasing, and I expect this to continue as the supply of stock struggles to keep up with the growth of HNWIs.” Oliver Banks, Associate, International Residential Developments, Knight Frank.

Furthermore, Sally Maier-Yip, Founder & Managing Director, 11K Consulting, states “From my China PR market perspective, the effect of the growth in global wealth, particularly from China, will have a direct, positive impact on the luxury market, from overseas luxury real estate to luxury retail, in the next decade.

Notably, China will be the main driving force behind the growth in the luxury market. Already, China is the world’s second-largest wealth market, with the largest number of people in the top 10% of global wealth distribution. The country is expected to contribute 41% of global luxury consumption by 2025, according to McKinsey.

As for the high-end real estate market, it is estimated that Chinese HNWIs are currently putting 12.5% of their wealth into overseas assets, with London ranked as the most popular investment destination, according to the Hurun Chinese Luxury Consumer Survey 2020. Therefore, the future is bright for the luxury market, thanks to the increasingly affluent consumers and HNWIs globally, particularly from China.

Finally, in the luxury art market, “We see a younger demographic collecting important works of art, particularly from Asia and USA. With House of Fine Art located in some key luxury locations, we can certainly already see a growth this quarter in global physical sales compared to the recent significant increase in online acquisitions.

For art to remain relevant to the global wealth growth, it is essential that collectors and HNWIs remain engaged and attracted by both the aesthetic as well as the collectable and investment element behind the art market.” Elio D’Anna, Founder of House of Luxury.

WHAT WILL BE THE OBSTACLES FOR LUXURY MARKET, OVER THE NEXT 5 YEARS? INTRODUCTION BY ACCOUTER GROUP OF COMPANIES

Given the uncertainty that the UK has found itself on over the past several years and with the uncertainty caused by Brexit and now COVID-19, it is also important to highlight that despite these challenges, the UK remain ranked in the top 10 countries for the volume of UHNWIs, with London also ranking as one of the top 10 cities globally. These global numbers are further inflating, with the ultra-wealthy benefiting from rising global stock markets and increased property prices. A recent report conducted by Knight Frank states that the number of individuals with assets of more than £26.5m grew by 6% in the last year and is expected to swell further by a staggering 27% by 2024, with most fortunes being made in countries such as India, Egypt, Vietnam, China and Indonesia. It’s worth noting that parts of Africa also see fast growth in this respect. With these markets outpacing others over the next 5 years or so, it will once again be interesting to see how this plays out and what the impact might be on luxury consumerism trends in the future.

“Gone are the days where luxury was about material things.

Now it is about exclusivity and highly personalised, unique experiences. The challenge for luxury travel is to continue to develop new innovative ways of delivering this at a level that meets the expectation of the HNW community. As global wealth grows, the demand ever increases, and we have to push the boundaries of creativity continually.” Golds of Abercrombie & Kent said.

Alasdair Pritchard, Partner of Knight Frank recalls “I met an Indian client recently, and we were comparing notes on cars; a high specification Range Rover costs anywhere between £75-90K in the UK however, in India, it’s half a million. So, taxation of western goods outside the UK certainly impacts the luxury goods market. If you have a second home in the UK, you pay 3% more, and if you are not a UK national, you pay an extra 2% on top of that. So, you can see taxation is an obstacle for the wealthy individual. However, wealthy individuals are not afraid to pay for the leading luxury brands.”

Agreeing with Prichard, Fatemi of Rokstone states “As well as rising prices for the luxury buyer, and rising interest rates could rein in runaway growth too. All-cash international buyers have been switching to mortgages with historically low-interest rates, with £5m plus products on the market.

However, the Bank of England could raise interest rates as early as the beginning of 2022 to control inflation. Not only does this make borrowing more expensive, but it will also turn the investors’ heads to other forms of asset class. Moreover, rising interest rates are not a UK-only phenomenon. Other

central banks are in the throes of interest rate decision making, such as Brazil. This may lead to a spike in purchasing in the short term as buyers lock in fixed-term mortgages.

Fiscal policy is also set to impact the luxury property sector as governments begin the long game of recouping lost revenue because of COVID-19. Although they will want to entice overseas wealth with golden visas, the international buyer will inevitably be a tax target.

Dell of Black Brick Property Solutions LLP notes, “Cities have always dominated in terms of where the global elite buy.

COVID-19 has accelerated many trends, such as space, houses over apartments and country homes. The question for anyone working in luxury is whether these trends will persist or revert to cities again. As we come out of the pandemic, the next biggest challenge is climate change. We have witnessed terrible flooding in recent weeks, and buyers of luxury assets will want assurance that real estate assets they buy are not only as environmentally carbon neutral as possible but also located in areas less affected by climate change, be that floods or fires.”

Bromley-Martin of Lodha Developers UK LTD expands “There will be high demand across global cities, such as London, with regards to luxury property, and there will be a dwindling supply in the best locations.

Foreseeing and adapting to peoples wants or needs. As a luxury developer, this has always been the case.

However, we need to be at the forefront of design and understand such needs now more than ever, as there has been a significant shift towards lifestyle changes post-pandemic.

People are prioritising family and wellness, so this must be translated through to designing a product that is equally as desirable.”

As for Walters of Cult Wines, “The primary obstacle in the near term for fine wine is the ongoing Coronavirus pandemic.

Although vaccine rollouts are allowing economies worldwide to reopen, the risk of additional waves and disruption remains.

Fine wine’s downturn during the initial outbreak in 2020 was relatively short and less severe than other financial markets, and we believe it can continue to display stability. Still, any significant economic downturn would temporarily pull back on fine wine’s potential.

Other risks include new tariffs or other trade barriers. The recent news that the US had suspended its 25% tariff on European wine for at least 5 years was welcomed by fine wine markets. However, other tariffs or shifts in trade relations around the world could emerge.”

Moreover, Charlie Walsh, Director and Head of Residential Sales & Marketing of The OWO Residences, Westminster Development Services Limited explains, “There are so many obstacles one could label as obstacles be it micro or macro.

From a macro perspective, one of the obstacles could be the accessibility of those who are unable to afford or experience luxury property to tangibly see the benefit and good at what we are creating. By that, I mean, I believe developers think they need to be cognisant of not creating these ivory towers, which are exclusive to large tracts of society. Whilst developers must contribute to things such as section 106, costs, and affordable housing, these are quite often invisible

contributions which are not related to the development. I think the successful developers going forward will create beautiful luxurious developments, but we’ll have an element of it which is at street level. Meaning it will be accessible to the wider population so that they come along and marvel and appreciate what has been created and have some sort of experience and touchpoint with that. It doesn’t become a seminar, which I think is very important going forward, especially as we see a greater diversification between the haves and the have nots. It is also about building better. That is not just the development itself; it’s the impact you have on the community, and everything around you. You know that these luxury developments are long term, they are here to stay, and the impact that they have on the London skyline is going to make a big difference both aesthetically, and what they do for the communities.

In agreement, Robotham of TLMC develops further “Inflation control, government policy and in particular additional or increased taxation for UHNWI. We have already seen various

“

Global wealth is more prevalent than ever.

changes in stamp duty taxation over the past few years and expect that UHNWIs will continue to be targeted by the government, perhaps with a council tax reform or with additional taxes for overseas homeowners in the UK. In the short term, the transition to a hybrid working remotely model may also affect demand for the Central London market, particularly the investment market, but we expect the appeal of Central London will remain to international homeowners.

International travel restrictions have clearly and significantly affected the PCL markets, and we fully expect with getting vaccinations being rolled out globally, those ‘double jabbed’ will be able to utilise the freedom of movement we were all previously used to. There is clearly a pent-up demand for travelling to the UK and London in particular, and many of our clients are itching to come back to their London homes and experience the unique London lifestyle.

How these travel restrictions are released, and the speed of the release is key to opening up global economies and driving the luxury markets forward.”

Lucian Cook, Head of Residential Research for Savills, concludes the point “Taxation and political uncertainty were the two biggest factors that held back the market pre-pandemic. The fiscal burden is likely to continue to present an obstacle to luxury spending, especially as government looks to recover the cost incurred in supporting the economy through successive lockdowns. In addition, the ability to move freely between different jurisdictions will also become a greater factor, depending on the lasting impact of the pandemic.”

For luxury goods and art, D’Anna of House of Luxury said “Certainly the bridge between physical and digital art is the most challenging factor we are all facing. We don’t foresee a transition from traditional art to solely digital, but we certainly embrace the change and are launching a series of platforms and mobile apps to fully support the acquisition of NFTs and digital assets also across our other platforms, such as House of Luxury.”

As for luxury furnishing, Gittins, Group Director & Co-Founder of Bazaar states, “British Luxury, in particular, remains desirable, but red tape and customs declarations increases in operational and financial costs relating to Brexit is a concern which we are unable to predict the life-span of.

There’s also no denying that, following the pandemic, production times are more strained due to the aftermath and scarcity of materials. However, Bazaar is proud to work with only UK-based manufacturers for our exclusive ranges, which means that we can overcome many of these concerns.

As the customer journey gets longer, the customer requires more digital interaction to be convinced of spending an increased sum through lack of face to face. As a result, luxury brands will need to ensure that they adapt to the everchanging improvements in marketing tools available to them, from 24/7 communication tools to social media innovation, as we expect our customers to explore more channels.

The good news is that people are still buying homes and willing to pay a price premium for design-led property, so at Bazaar,

we are confident that if our online experience is a unique and informative one, we can continue to thrive.”

Finally, with a different outlook, Maier-Yip, Founder & Managing Director of 11K Consulting, suggests “Luxury brands must constantly keep themselves ahead of the game to reach and build trust with their consumers through the proper communications channels at the correct times. There is no more “one-size-fits-all” marketing strategy for different markets. Instead, everything needs to be personalised for different types of audiences.

Across all luxury market segments, audiences are generally getting younger, especially in China, where 43% of Chinese luxury consumers were born in the 1980s. This generation is used to using social media platforms every day, such as Douyin or WeChat enables them to share content online. Therefore, having a strong digital brand reputation is the most critical for luxury brands, which can be a challenge for those who are used to offline-only communications methods.”

“

Across all luxury market segments, audiences are generally getting younger, especially in China.

”

WHAT’S ARE THE MOST SIGNIFICANT TRENDS WITHIN THE LUXURY MARKET, AND HOW WILL THE GROWTH IN GLOBAL WEALTH IMPACT THIS?

“The great thing about the term luxury is that it is so subjective. One person’s luxury is another person’s necessity and individuals’ priorities, and therefore definitions of luxury change throughout their lifetime as families ebb and flow.

Growth in an already subjective field, to my mind, only means more diversity of products and offerings. A significant increase in entrants to the market means more onus on providers to fully understand their market and adapt their products accordingly. It will be exciting to see how the luxury market adjusts to the new flows of wealth worldwide and recognises and caters to these diverse streams.” Curtis of Strutt & Parker.

Considering the impact of the pandemic internationally, Maier-Yip of 11K Consulting, states “In the aftermath of COVID-19, the most significant trend in the luxury market is that luxury, from real estate, travel to wine, has to be practical, sustainable and meaningful. It is no longer only about one-off indulgence, but it has to be integrated with a bigger purpose, such as for better well-being, lifestyle, or environment. Therefore, brands must articulate and communicate their vision, which should be backed by a measurable, positive impact on someone or something, clearly and consistently to their target consumers.

For example, luxury developers or property-related companies cannot just talk about how amazing their products are, but also need to communicate about their brand vision, such as for building a better community or a better environment for the next generations, in order to win the heart and loyalty of the buyers. Moreover, with the continued growth in global wealth, especially from China and Asia, that means luxury consumers are now more willing to explore new and meaningful services or products. So there is a real opportunity for brands to create something unique and innovative for the new demand of the new luxury consumers.”

As for luxury goods, millennials are set to be the next biggest market to target, explains Gittins, Group Director & Co-Founder of Bazaar “In 2020, when we were asked to stay at home, consumers across all generations were forced to engage with brands digitally, and the face-to-face buying experience that we all valued enough to pay a premium for was moved online. This is a significant trend that we predict to

stay, and it has been proven that consumers aren’t afraid to buy high ticket items online, especially as 50% of the luxury market will be Millennials and Generation Z by 2025 and most importantly, they are already digitally savvy.

Almost a third of this generation are also willing to pay more for sustainable products, and the consumer is more inquisitive of product origins, the material of goods and social impact.

Therefore, transparency and accountability of a product are paramount throughout the supply chain.

Providing UHNWIs with an experience that feels just as exclusive as a visit to a boutique on New Bond Street will be a trend that is here to stay. Bazaar’s shoppable virtual tours of Accouter and A.LONDON’s award-winning schemes, which you can also visit in person as a member of the Bazaarly Important People (B.I.P.) club. The membership offers you access to new product launches, virtual interior design consultations, exclusive access to interior and art world events are increasingly desirable.”

Adding to the desire for exclusivity, Beckett of Knight Frank deliberates “The most significant trend I have seen over the last 18 months is ensuring everything is made easy for the wealthy whilst remaining exclusive. They want bespoke, elegant and individually designed homes, fashion and food, perhaps something nobody else can have. But, in London, it also seems that discretion and being understated is critical; most global wealth wish to stay under the radar.”

“Certainly, the recent boom in the NFT space is a significant trend right now, but also we see a boost in collectables and limited edition prints and collectable design and furniture items” ends, D’Anna of House of Luxury.

As for property, “HNWIs expectations of luxury and prime property are ever-increasing. Whilst location remains an important factor, other attributes such as design, fixtures & furnishings, amenities, views and outdoor spaces are becoming increasingly essential for the distinguished buyer.

We are seeing individuals’ make a broader range of investments across the luxury asset classes, not only the likes of wine, cars, art and jewellery but also in global property. A growth in

co-primary residences which is becoming evident, with individuals and families looking for the quality of life that living across different locations at different times of the year can offer.” Banks of Knight Frank.

Walsh of WDS adds, “I think sustainability has become a bit of a buzzword now. It has become almost part of the fabric and almost expected amongst buyers, in all market base and amongst all producers of different lines of luxury goods. From a sustainability point of view, buyers will expect to have electric car charging points within a development that expects to have renewable energys where possible within developments.

There is a conscious bias of people being aware that we have things like BREEAM ratings for buildings throughout, you know, “how green are your buildings”? I think it is important, but I wouldn’t say for now it has become a deal-breaker for some of the buyers I’ve spoken to, although they expect it to be in place. It is almost not asked about so much because they expect the sustainability points to be considered. In terms of the well-being, mental health, physical well-being, these are all essential parts in our lives, and I think that plays a huge part in what we market our developments going forward.

Whether it is gyms, personal training sessions, the latest equipment, pools, facials, and treatments. People are now aware that time is short, look after your body and your mental health, and if you can buy into a development which offers that on your doorstep, you don’t have to leave it and the very best available. That is a huge attracting factor to maintain that sort of that level of well-being and something people really need look into.”

Adding to Walsh, Pritchard of Knight Frank strengthens “We are seeing significant growth in hotel founded residences such as OWO Residences run by Raffles, The Peninsula Residences run by The Peninsula, not forgetting the iconic One Hyde Park run by The Mandarin Oriental and Four Seasons brands that are expanding worldwide. The level of service and demand from a hotel environment is now coming into your home.

People are happy to pay for a lifestyle that is accompanied by a best-in-class service.”

“The combination of the search for space, location, safety, and environmental concerns are the most significant trends facing the luxury real estate market. There will always be competition for the best-in-class, which will accelerate as global wealth rises.” Dell of Black Brick Property Solutions LLP. Developing further, Robotham of London Management Company “Buying a trophy asset in key Central London locations (Mayfair, Knightsbridge, Chelsea, etc.) will continue to be an attractive option; these significant assets need to be managed and maintained to a high standard, and we only expect the demand for this service to continue to increase.

Our clients are usually time-poor and cash-rich; they require a 5-star service wherever they are in the world at every touchpoint. The requirement for a personal, professional, cost-effective property management solution will become more necessary over the next 5 years, and I expect the service industry will continue to grow. Notably, there must always be a human angle on the management of an asset, with technology supporting this, never the other way around. The relationships we build with our clients are personal, and our clients expect and prefer human interaction rather than a reliance on tech alone.”

Concluding property trends “The need for space – internally and externally. They are purchasing and creating more space for the wider family to share, resulting in an increased budget for larger homes and combining bedrooms or living space. It goes without saying that outside space is a must, and the terraces at No.1 Grosvenor Square are highly sought after in that respect. This desire for more space will be greater than ever. However, opportunities for luxury homes in prime locations will be harder to find” finishes Bromley-Martin of Lodha Developers UK LTD. Golds of Abercrombie & Kent explains, “As a result of the growth in global wealth, we’re already experiencing an increased interest in private travel. The desire for exclusivity, whether that be to travel by private jet, stay in an ultra-luxury private residence or privately charter a superyacht, has seen the demand rise exponentially. A&K’s 2022 Private Jet Journeys have already sold out, and we have released more dates, the impact for luxury travel is trying to match capacity with demand.”

“Increasing diversity of the global fine wine market has formed a significant trend in recent years. Liv-ex, an international fine wine marketplace and database, has reported record numbers of individual wines and producers traded on its platform in recent months, and while bordeaux and burgundy still form the market’s core, their respective market shares are falling. For example, Bordeaux wines comprised over 95% of the market in 2010, but this share has fallen to just over 50% in recent years as the likes of Champagne, Italy, and Rhone enjoy impressive growth.

This diversity is boosting overall market stability. However, as new producers and new regions gain exposure to a growing base of global investors, an obstacle such as a bad vintage or a

new regional trade barrier for one fine wine region could end up driving demand toward a new region”, Walters of Cult Wines.

Finally, what remains top of mind are important health and well-being trend considerations. “Health-driven lifestyle decision-making is the most significant trend within the luxury property sector as younger generations buy in line with their interests and values. Health and well-being (at personal, societal, and environmental levels) were already becoming important, but the pandemic has accelerated this shift in mindset. With memories of the lockdowns lingering, families will attempt to cocoon themselves in spacious homes that cater to all their needs should the world see a repeat of 2021 with more demand for hi-tech, zero-carbon homes with climate-controlled interiors, private well-being facilities and bespoke air filtration. In addition, high-end residential property will come with beds that analyse sleep patterns and bathrooms that measure hormones. Thus, in the near future, luxury buyers will expect their home to be the healthiest place they spend time in.” Says Fatemi of Rokstone.

“Health and well-being, coupled with carbon neutrality: fresh, filtered air; gardens or access to large private open spaces; private leisure facilities (we’ve seen a significant increase in demand for things like golf simulators); at country houses, reinstating neglected kitchen gardens and orchards and installing renewable energy sources in a drive towards selfsufficiency.” Andrew Paulson, RIBA ARB, Partner of one of London’s premium boutique luxury architecture and interiors firms, Lees Associates, concludes.

Dataloft is an established property market intelligence company with a long track record of analysing and reporting on the housing market. We are committed to stripping away the mystique of complex data analysis and adding value for clients through interpretation, insight and creativity.

Dataloft is an established property market intelligence company with a| dataloftinform.co.uk long track record of analysing and reporting dataloft.co.uk on the housing market. We are committed to stripping away the mystique of complex data analysis and adding value for clients through interpretation, insight and creativity.

Dataloft is an established property market intelligence company with a| dataloftinform.co.uk long track record of analysing and reporting dataloft.co.uk

FINAL WORDS WORDS BY ACCOUTER

Referring to the initial first point regarding the rise of online sales, other changes in consumer behaviour are being experienced in the search for more sustainable and conscious purchasing options. With the facilitation of platforms such as YouTube and Instagram fashioning a new world of content creators, we see an overwhelming increase of wealth within Millennials and Generation Z, who are predicted to make up 50% of the luxury market by 2025. Of this group, 30% are willing to pay more for sustainable products, which is only set to increase further as the world responds to the global crisis. Luxury industries are no exception and are already making considerable efforts to invest in this new future ahead of us.

Lying at the pinnacle of their industries, luxury brands have inherently been gifted tools in the ability to provide sustainable products now that people are looking to invest in quality over quantity, a trend we have certainly seen at Accouter where clients are willing to dig deeper into their pockets to purchase timeless, heirloom pieces which will last the length of time. If we can adjust our use of materials, labour practices, supply chain, and all other elements encompassed within environmental and social sustainability for the better. We can further encourage this pattern of changing consumerism and significantly impact what must be one of the most critical global challenges we are currently facing. In conclusion, it is safe to say that these findings suggest the world of luxury is perhaps surprisingly looking like it will bounce back from the pandemic and offer considerable opportunities for creative and innovative thinking.

CONTRIBUTORS FOR THE ACCOUTER GLOBAL LUXURY & WEALTH REPORT

Alasdair Pritchard, Partner, Knight Frank Andrew Paulson RIBA ARB, Partner, Lees Associates Becky Fatemi, Founder, Rokstone Camilla Dell, Managing Partner, Black Brick Property Solutions LLP Charlie Walsh, Director and Head of Residential Sales & Marketing, The OWO Residences Westminster Development Services Limited Charlie Willis, CEO, The London Broker Elio D’Anna, Founder, House of Luxury James Robotham, Associate Director, London Management Company Kerry Golds, Group Managing Director, Abercrombie & Kent Lucian Cook, Head of Residential Research, Savills Nick Beckett, Associate, Knight Frank Oakley Walters, Global Marketing Director, Cult Wines Oliver Banks, Associate, International Residential Developments, Knight Frank Philippa Bromley-Martin, Senior Manager Sales, Lodha Developers UK LTD Priya Rawal, Founder, The Luxury Property Forum Sally Maier-Yip, Founder & Managing Director, 11K Consulting Sarah Curtis, Senior Director, London New Homes, Strutt & Parker Stella Gittins, Group Director & Co-founder, Bazaar, Accouter Group of Companies

Accouter collaborate with Ultra High Net Worth Individuals around the world to create exquisite award-winning interior architecture & design. From first sketch to final touch, they turn exclusive spaces into exceptional homes and are renowned for delivering world-class interiors and FF&E with sustained excellence.

VISIT US ACCOUTERDESIGN.COM CONTACT US INTERIORS@ACCOUTERDESIGN.COM INSTAGRAM @ACCOUTERDESIGN LINKEDIN /COMPANY/ACCOUTER-DESIGN FACEBOOK @ACCOUTERDESIGN PINTEREST ACCOUTERDESIGN_

Dataloft is an established property market intelligence company with a long track record of analysing and reporting on the housing market. We are committed to stripping away the mystique of complex data analysis and adding value for clients through interpretation, insight and creativity. dataloft.co.uk | dataloftinform.co.uk