The recent migration trend among global wealthy individuals is bringing about new changes to the real estate market.
In particular, the United Arab Emirates (UAE) and the United States are attracting the attention of the world's wealthy as they are expected to rank first and second in net inflow of wealthy individuals in 2024.
At the same time, there is a clear trend among high net worth individuals in Korea to turn their eyes overseas.
According to the '2024 Wealth Migration' report published by global investment immigration consulting firm Henley & Partners, the net outflow of high net-worth individuals (HNWIs) from Korea in 2024 will reach approximately 1,200.
This figure ranks fourth in the world, following China (15,200), the UK (9,500), and India (4,300).
Following China with a total population of over 1.4 billion, the UK with over 68 million, and India with 1.4 billion, the fact that an absolute number of 1,200 wealthy people are leaving the country in Korea with a population of around 50 million is evidence of the seriousness of the outflow of domestic wealth.
In fact, this standard is based on the results of counting only wealthy individuals with liquid investable assets of more than $1 million (approximately 1.38 billion won) who stayed in a foreign country for more than 6 months.
This absolute net outflow is expected to triple in just two years, from 400 in 2022, 800 in 2023, to 1,200 in 2024.
There are a variety of factors that are working together to drive this outflow of wealth, including the burden of inheritance and gift taxes, the weak won, the need for global asset diversification, children's education, and immigration policies.
Among the wealthy in Korea, approximately 26.8% are considering overseas investment immigration, and the proportion is particularly high among high-net-worth individuals aged 50 or older with assets of 10 billion won or more.
The main countries of immigration are English-speaking countries such as the United States, Australia, and Canada.
By 2024, the United Arab Emirates (UAE) is expected to see a net inflow of around 6,700 millionaires, ranking first in the world for the third consecutive year.
The United States came in second with about 3,800, followed by Singapore (3,500), Canada (3,200) and Australia (2,500).
The United Arab Emirates (UAE) has strong investor-friendly policies such as no income tax, foreign ownership of 100% real estate, and long-term residency. Its growth as a global financial hub, high safety, and excellent infrastructure are also accelerating the inflow of wealthy individuals.
The United States has long been a preferred destination for wealthy immigrants, citing its economic size, investment immigration system, and diverse educational and business opportunities as attractive factors.
Burj Khalifa, a landmark located in Dubai, United Arab Emirates.
The overseas migration and asset movement of Korean wealthy individuals is not a simple phenomenon.
This is interpreted as a structural change that is in line with the trend of global asset owners. Asset portfolios that were previously centered on real estate are gradually expanding their financial assets and global diversification, and the purpose of investment is also diversifying beyond pure asset growth to include tax savings, immigration strategies, children’s education, and realizing a global lifestyle.
These changes also have important implications for the domestic real estate market.
The real estate markets of cities and countries chosen by global asset owners are becoming more robust, and the lines between investment, immigration and asset management strategies are becoming increasingly blurred.
In this way, the migration and investment of global asset owners is no longer a temporary phenomenon, but has become a core element of asset portfolio strategy. The migration trend, which considers asset preservation and growth, tax efficiency, living environment, education, and business opportunities, will continue to be an important criterion for determining the direction of the real estate market.
In keeping with this trend, Remax Korea will be holding an overseas real estate seminar centered on Dubai, United Arab Emirates and Tampa, Florida, USA, which are attracting the most global wealth.
This seminar will directly invite global developer Sobha Realty (Dubai) and ARC Realty Group co-founder Luigi Novembre (Tampa, USA) to introduce representative projects and investment strategies in each city on site.
Additionally, participants can receive in-depth guidance on practical investment possibilities and conditions through 1:1 customized consultations after the session ends.
First, on Thursday, June 19, a seminar will be held on the topic of Dubai, United Arab Emirates, and on Friday, June 20, a seminar will be held in which the real estate market in Tampa, Florida, USA will be intensively covered.
Each seminar will be held from 2 to 4 p.m. with the main session followed by a 1:1 customized consultation session for more specific investment review.
