Global Wealth and Lifestyle Report 2024: Welcome back to the Roaring 20s

As the wealth management group Julius Baer unveils its 2024 Global Wealth & Lifestyle Report, we dive into the new trends that are defining the culture of affluent living

Global wealth and lifestyle report 2024Wealth management group Julius Baer has published its Global Wealth and Lifestyle Report for the year 2024. This yearly report looks to analyse the prices of consumer goods and services that reflect the high net worth lifestyle in 25 key cities across the globe.

Its Lifestyle Index is based on a review of 20 goods and services that represent discretionary purchases by high-net-worth-individuals (HNWIs) globally – ranging from property and lawyers to supercars and designer handbags. The cost of these items in 25 key cities are then compiled and compared, to examine trends on global, regional and categorical levels.

The report’s findings reflect the impact of a ‘new normal’ post pandemic and show how inflation and cost of living is impacting the luxury market. According to the report, HNWIs across the globe are spending more on leisure travel, fine dining and luxury hotels as they prioritise pleasure post-pandemic. This growing trend reflects a desire to indulge in lifestyles reminiscent of the economic booms of the Roaring 20s. This rise in spending is linked to the group’s financial optimism.

The report also states that London is now the third most expensive city in the world to live in affluently — after Singapore and Hong Kong. This is due to the pound being stronger and significant price increases due to inflation over the last year, says Jamie Banks, head of wealth planning UK.

Over the past year, the inflationary environment in the UK has meant sustained higher living costs for all levels of consumer, as prices for everything from staples to luxuries have remained elevated,” says Jamie. Global Wealth and Lifestyle Report 2024Related: Global Wealth & Lifestyle Report: 2023’s most affluent cities

“This year’s results show the premium paid for education, hospitality, and legal services, as well as luxury fashion items, in London, that can be attributed to increasing labour, goods, and real estate costs.,” he adds.

Despite the rising costs, London still remains one of the most popular destinations for high net worth individuals to build a nest egg in, thanks to its quality of life, economic opportunities and relative stability.

“However, recent legislative changes, a prospective change of government, and the significant cost for items such as premium property, medical services and education, risk dampening its draw for wealthy individuals and families,” adds Jamie.The growing focus on health among HNWIs is also gaining momentum, as health related spendings take high priority across every region surveyed. Many affluent residents in the Middle East have also led to a boom in the purchase of luxury goods, particularly jewellery and accessories.

Another key finding of the report is the focus on sustainability for any key high net worth areas. While personal enjoyment is still a high priority, HNWIs in the Middle East, APAC and Latin America are making more responsible investments, with many reviewing their portfolios to understand the environmental, social and governance impact of their choices. However, this has not yet translated to their goods purchasing habits.

So while strides have been made to focus on sustainable development, there is still a long way to go in terms of getting HNWIs to fully integrate sustainability into their spending practices.

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