Billionaire Migration Soars Post-Pandemic, Driven by Quality of Life, Tax Concerns

A surge in billionaire migration has been observed since the start of the COVID-19 pandemic, with Switzerland, the UAE, Singapore, and the US emerging as top destinations, Bloomberg reports, citing a new report from UBS Group AG.

The report, released Thursday, reveals that roughly one in 15 of the world’s 2,682 billionaires – representing $400 billion in capital – has relocated since 2020.

The Middle East and Africa attracted the largest share of this wealth migration. The report attributes the trend to a confluence of factors, primarily focusing on quality of life concerns. As billionaires age and their families grow, access to top-tier healthcare, excellent education, and safe environments have become increasingly important relocation drivers. The number of billionaire children has increased by 56% to 6,441 in the past 10 years, further emphasizing this factor.

Geopolitical factors and tax policies also play a significant role. Singapore, for example, has seen a significant influx of wealthy Chinese individuals following Beijing’s crackdown on the private sector. Similarly, global wealth havens are actively courting high-net-worth individuals from the UK, anticipating potential tax increases under a potential Labour government.

Regarding investment strategies, North America remains the top choice for both short- and medium-term investments, fueled by technological advancements such as generative AI and weight-loss drugs. The survey reveals that around 40% of billionaires plan to increase their real estate holdings in the next year, along with investments in developed-market equities, gold, and precious metals. However, nearly one-third prefer cash, reflecting concerns over geopolitical risks and inflated stock valuations.

The report highlights a significant increase in the number of billionaires – a 50% rise in the past decade – and a 121% jump in their collective net worth to $14 trillion. However, the report also notes a slowdown in global wealth creation since 2020, partially attributed to a decline in the fortunes of Chinese billionaires, who have experienced an average annual decrease of 5% during this period.