Europe is home to 17 of the top 20 cities for millionaire density
Europe dominates the list of the top 20 cities for millionaire density, new research has revealed.
As the rich and the glamourous descended on Monaco for the Grand Prix at the weekend, data published by business news and analysis website Verdict, compiled by GlobalData WealthInsight, shows it remains the top global city for millionaire density by some margin.
Almost a third of people (30.6 percent) living in the Mediterranean city-state have a net worth of over $1m. Millionaire density is measured as the percentage of the resident population with assets – not including the value of their first home – of over $1m.
Despite Monaco’s dominance as the most millionaire dense city in the world, it has recorded a drop of 0.5 percentage points over the year, from 31.1 percent in 2016.
For the top 20, all cities that were featured in the 2016 report registered declines over the year. The only US city to make it into the top 10 is New York (9th), whose millionaire density fell to two percent, from 4.7 percent previously.
Europe dominates the top 10, with the only non-European cities Hong Kong (6th), Singapore (7th), and New York. London has been nudged to fifth by new addition to the list, Zug – also in Switzerland.
However, it remained largely unaffected by Brexit, as Verdict editor, Billy Bambrough, added: “It is heartening to see London’s density of millionaires all but unaffected by last year’s Brexit vote suggesting people are waiting to see how negotiations between the UK and the European Union play out over the next couple of years.
“General population size is still the most decisive factor when it comes to the number of millionaires but with London by far the largest city in the top five its 1/29 proportion of millionaires is undoubtedly impressive.”
Zurich – falling to third place from second last year – has a millionaire density of just 5.2 percent now due to a recalculation of population. Geneva has overtaken Zurich as the second most millionaire dense spot, however its fall is also largely due to a recalculation of population.
This recalculation further emphasises Monaco’s attractiveness to the world’s wealthiest individuals.
WealthInsight’s Oliver Williams said: “Monaco has long drawn in wealthy residents from all over the world. But this year’s ranking shows that the Principality is not as popular among millionaires as it was. A global crackdown on tax evasion and worries about the reputational damage of leaks such as the Panama Papers has dampened demand for tax havens such as Monaco. A global shift in wealth towards Asia and the rocketing price of Monegasque real estate has also put some millionaires off the city state.
“Zug is a new addition to this list. The sleepy Swiss town is home to a disproportionate number of multinationals, in turn attracting their millionaire directors. Global groups such as Glencore maintain their registered address in the Canton thanks to its very low tax.
“It is interesting to note that over half the cities in this list are European. Although they have much smaller populations than their US or Asian counterparts – meaning larger millionaire densities – these European cities have all been successful in attracting millionaires from around the world. It appears that a high quality of life, superior universities and historical centres – as well as favourable taxes – are the key ingredients for a high millionaire density.”
The top 20 cities are:
- Hong Kong
- New York
- San Francisco
UK office space slashed as hybrid working looks set to stay
With hybrid predicted to be the working model of the future, and businesses both large and small announcing that WFH will continue for employees into the future, the traditional office space is being re-thought.
Businesses are both questioning how much space they need for a hybrid working future, especially if it means they can potentially save money, and what form that space should take.
UK firms slashing office space
Back as early as February, HSBC – whose real estate footprint currently stretches to around 112 football pitches worldwide – said it would be cutting its post-COVID office space by half globally and by 40% in London over the next few years, as it looks to implementation of a hybrid working model in light of the pandemic.
Lloyds Bank followed suit. Following an internal survey where 77% of employees said they wanted to continue to work for 3+ days a week post-pandemic, the bank announced it was also moving to a hybrid model, and so looking to cut its office space by 20% over the next two years.
In fact, the latest research from consulting firm PwC reveals that a third of organisations surveyed (258 of the UK’s largest companies) believe they will reduce their office footprint by more than 30%.
The findings of PwC’s Occupier Survey indicate there is likely to be a sizeable fall in occupied office space with half of executives surveyed saying that despite taking into account mass vaccinations, employees will continue to work virtually 2-3 days a week.
And companies continue to announce the hybrid working model for their employees. Accountancy firm EY has just announced that its 17,000 employees are moving to a hybrid way of working, WFH for at least two days a week. This follows PwC which in March said workers could stay at home for half the time and KPMG which this month said it would expect employees to only work two days in the office every week.
More collaborative work spaces
However, what’s also clear from PwC’s research is that the role of the office is not going to disappear completely, but instead adapt to a new way of working, with half of all organisations with more than 100 employees saying they have a real estate and workplace strategy that considers the long-term impact of COVID-19.
“We may see an increased demand for flexible space as many businesses operating models may well need that option if holding dead space is to be avoided,” says Angus Johnson, UK Real Estate Leader at PwC UK.
According to the survey, more than three quarters of respondents said they are likely to reconfigure existing office with 43% of financial services firms stating that they are extremely likely to do so as a result of the pandemic.
“It’s also clear that the nature and purpose of office space is going to change. As occupiers seek new, different space to meet their accommodation needs, environmental aspects will be increasingly important. If the real estate sector is to truly succeed as a more dynamic, greener industry it’s imperative that creative thinking comes to the fore.”
And companies are already thinking creatively how they can utilise office space in a hybrid future. So while HSBC is cutting a significant amount of office space, it is not downsizing its prestigious Canary Wharf headquarters, and instead reimagining the space. In April, CEO Noel Quinn announced the firm was embracing an open plan floor, with no designated desks or private offices, and instead using hot-desks in line with the future hybrid working style. “My leadership team and I have moved to a fully open-plan floor of the building in east London with no designated desks,” he said on LinkedIn.
Lloyds also reported it was adapting its office space, so that rather than individual offices, it will have a more collaborative workspace. And just last month, KPMG announced it too was ditching desks and individual offices, and replacing them with meeting rooms and conference halls for a more collaborative workspace.