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Sven Odia is a distinguished real estate executive with over 25 years of experience in the luxury property sector.
Lan Anh Nguyen is an international real estate advisor specializing in luxury properties.
For the world’s ultra-wealthy, the concept of ‘home’ has evolved far beyond a matter of personal preference. It is now a calculated decision embedded in long-term wealth strategy. As global capital flows become increasingly fluid and geopolitical risks intensify, high-net-worth individuals, and particularly centi-millionaires with investable wealth of USD 100 million or more, are rethinking residence as a dynamic component of portfolio construction. In this new paradigm, beyond being tangible assets, residential properties function as a platform for lifestyle flexibility, legal arbitrage, and cross-border risk management. The result is the emergence of domicile diversification: a deliberate structuring of global residential footprints across multiple jurisdictions to secure capital, access opportunity, and hedge systemic exposure.
The Henley & Partners Wealth Migration Report 2025 highlights this rising trend — a record 142,000 millionaires are projected to relocate this year, prompted by policy shifts, wealth protection needs, and macro uncertainty as opposed to luxury consumption. Jurisdictions such as the UAE, USA, and Switzerland are among the top net beneficiaries. Conversely, certain traditional economic powers are experiencing sharp outflows, led by the UK, which is forecast to see the highest net outflow globally. Net millionaire losses are also evident in China, India, Russia, and South Korea, where increased regulatory scrutiny, political instability, or perceived erosion of institutional quality are among the wealth migration drivers.
For investors, these flows signal more than individual movement. They reflect broader reallocation patterns, where capital seeks jurisdictions that offer legal certainty, tax optimization, and sovereign insulation.
While location has always been a central consideration in real estate acquisition, the investment thesis for today’s globally mobile elite is governed by a more nuanced triad: stability, accessibility, and tax efficiency. These criteria are now as critical to property selection as they are to asset allocation in a traditional portfolio.
Stability refers to macro-economic resilience, institutional strength, political neutrality, and rule of law in the chosen jurisdiction.
Accessibility includes visa and residence programs and the concomitant global mobility they offer as well as ease of doing business.
Tax efficiency encompasses favorable income, inheritance, and capital gains regimes, as well as bilateral tax treaties.
Jurisdictions scoring highly across this matrix, such as Dubai, Singapore, Switzerland, Italy, and select Caribbean nations, have become strategic nodes in the global wealth infrastructure. Furthermore, the shift in US political leadership is expected to trigger a notable capital outflow for 2025, as high-net-worth investors seek greater fiscal stability and asset protection in Europe, the UAE, and Asia. Amid rising regulatory pressures and growing tax uncertainty, Spain — particularly the Costa del Sol, Mallorca, Barcelona, and Madrid — has long been a preferred destination for American buyers. In 2025, we anticipate a marked surge in property acquisitions in these regions, driven by their Mediterranean lifestyle, favorable tax structures, and well-established international communities.
Analysis of the top 5% of global real estate transactions reveals three core archetypes that dominate the acquisition behavior of the world’s most affluent:
Situated in stable, legacy markets — London, Paris, and Zurich — these assets serve both as prestigious primary residences and intergenerational stores of value. Their limited supply and historical character provide downside protection and a hedge against currency and market volatility. Typically held via trusts or family holding vehicles, they are rarely liquidated and often retained as legacy positions.
Located in emerging or transitioning markets, these properties are acquired for repositioning or development upside. Targeted by next-generation wealth holders, this segment aligns with more active strategies akin to private equity real estate or venture capital: opportunistic, yield-seeking, and locally nimble.
High-quality, compact residences in Tier 1 cities — New York, Milan, Singapore, Tokyo — are favored for their liquidity, market depth, and geopolitical utility. Often acquired through special purpose vehicles, they act as operational bases and strategic hedges that can be quickly monetized or repurposed.
Collectively, these residential properties go far beyond lifestyle assets; they serve as integral components of a modular wealth architecture, each fulfilling a distinct strategic role within a diversified real estate portfolio. Since the pandemic, the concept of luxury has undergone a meaningful transformation — shifting away from excess towards self-sufficiency, security, and purposeful living. Today, the globally mobile elite increasingly seek properties that offer independent energy and water supply, organic gardens or vineyards, and even private boat docks or access to forests. These assets not only elevate quality of life, but also support long-term objectives around mobility, resilience, and multi-generational legacy planning.
As the macro landscape becomes more fragmented and policy unpredictable, global real estate is assuming a new role: that of a sovereign hedge. Unlike traditional financial instruments, real estate can deliver capital protection, lifestyle access, residence rights, and family security — all within a single asset. Additionally, the integration of property ownership with investment migration programs such as golden visas or citizenship by investment programs allows high-net-worth families to gain not only a physical foothold but also a political and legal one. This dual utility places real estate at the intersection of personal freedom and financial strategy.
Domicile diversification is no longer a luxury or trend. It is a structural necessity for the 21st-century investor. In an era defined by capital controls, tax evolution, and geopolitical polarization, the ability to deploy wealth into jurisdictionally diverse, tax-optimized, and physically secure assets is the new benchmark of wealth intelligence.
For family offices, wealth managers, and private investors, the message is clear: residence strategy must be embedded into the broader wealth architecture. Real estate is no longer just where you live — it’s how you preserve, protect, and project your capital across generations and secure your legacy.
Henley & Partners assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
