Germany has seen an increase in the number of billionaires, with their collective wealth reaching $546 billion, reflecting a global trend among the wealthy towards investing in real estate and gold.
According to a study by UBS and PWC, 43% of billionaires surveyed plan to increase their investments in real estate, while 40% are looking to acquire more gold and precious metals. This shift in investment strategy is driven by rising geopolitical risks and declining stock prices. Lower financing costs and a structural undersupply in the real estate market make it particularly appealing to investors. Residential properties and commercial spaces, such as data and logistics centers, are seen as resilient against economic downturns.
The rise in the number of billionaires globally is attributed to the success of self-made entrepreneurs, particularly in the tech sector. Approximately 70% of high earners are first-generation self-made entrepreneurs, with wealth creation shifting from traditional sectors to innovative fields such as artificial intelligence, cybersecurity, fintech, 3D printing, and robotics. However, Germany lags behind in terms of self-made billionaires, indicating a less supportive environment for entrepreneurship compared to other countries.
The business climate plays a crucial role in the relocation decisions of billionaires, with many choosing to move to countries with favorable conditions such as Switzerland, the United Arab Emirates, the United States, and Singapore. Factors influencing these relocations include quality of medical care, tax burdens, political stability, education, and inheritance laws. The COVID-19 pandemic has further highlighted the importance of these considerations.
While the number of billionaires worldwide has stagnated, there has been an increase in female billionaires, reflecting changing societal norms and the greater involvement of women in entrepreneurship. The study also predicts a significant transfer of wealth from billionaires aged 70 and over to family members or charitable organizations, which could reshape philanthropy and investment strategies in the future.
Overall, the focus on safe-haven investments like real estate and gold reflects a cautious approach by billionaires in navigating the complex global landscape.