The Julius Bär Global Wealth and Lifestyle Report 2023 offers a further bit of surprise, considering the most expensive cities for living. Asia remains the most costly region to live in for the fourth year in a row. But Singapore is now in the number one spot, rising from fifth. Shanghai is second, down from number one, and Hong Kong makes up a fully Asian top three.
The report examines the lifestyles of high-net-worth individuals (HNWIs) across the globe using a basket of goods and services that reflect their consumption patterns. Through this Lifestyle Index, the yearly changes on a global, regional, and categorical level are considered, as well as their impact on purchasing power and wealth preservation.
Preserving the Health
“The wealthy individuals are adapting their consumption and lifestyle habits both to make hay while the sun shines and to brace for any future shocks”, says Christian Gattiker-Ericsson, Head of Research. The quantitative research shows that HNWIs are taking steps to preserve their health and wealth on an ever-increasing level. Fitness and wellbeing practices, health insurance, and education, as well as family and financial resilience, are top priorities.
Improving nutrition, taking time to recuperate and relax, and raising fitness levels have all been highlighted. More than half of respondents in all regions have used gym memberships in the past year, and in Europe and Asia-Pacific countries (APAC), one in four exercised almost once a day. Personal gym equipment is also high on the list, with home exercise being particularly popular in APAC. This ‘future-proofing’ of body and mind also extends to building better relationships with family and friends.
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To be out and in Fashion
This 2023 survey also reveals a focus on high-end consumption. In terms of products, fashion and accessories, including designer clothing, watches, handbags, and shoes, are at the top of respondents’ lists.
Spending has increased the least in North America, at middling levels in Latin America and Europe, and fairly significantly in APAC, but the Middle East has markedly increased its discretionary spending, particularly on fine jewelry and watches and men’s designer clothing. “The desire to be in fashion while enjoying being out and about is clearly one our respondents are indulging in,”, notices the Julius Bär report.
The greatest price increases are in high-demand premium consumables such as wine and whisky, as well as luxury cars and hospitality services. Hotel suites, business class flights, and fine dining all experienced significant price increases as the demand for travel and entertainment surged.
Another is an increased consideration of sustainability and environmental, social, and governance (ESG) matters in investment decisions, with the vast majority of HNWIs in all regions now considering them important. This sentiment is particularly strong in Latin America, APAC, and the Middle East.
“Interestingly, North America is a real outlier here, with 40% of respondents considering ESG and sustainability as either not so important or not important—significantly more than any other region”, concludes the Julius Bär report.
