China Ultra-High-Net-Worth Individuals Real Estate Investment Report 2025
1. Executive Summary
1.1 Research Background and Methodology
This report, released by Pridebay, a leading Asian research institution focusing on the lifestyle and investment behaviors of ultra-high-net-worth individuals (UHNWIs), adopted a rigorous research methodology combining quantitative surveys and qualitative in-depth interviews. The research covered 800 UHNWIs in China (defined as individuals with a net worth of over RMB 100 million), spanning 45 major cities and 18 core industries, including finance, technology, real estate development, and manufacturing. Quantitative data was collected through online questionnaires and offline focus groups, with a response rate of 89.2%, ensuring statistical validity and representativeness. Qualitative insights were derived from 50 one-on-one in-depth interviews with UHNWI representatives, wealth managers, and real estate industry experts, providing nuanced perspectives on investment motivations and decision-making processes. The research period spanned from January to December 2024, with data cross-validated against official statistics from the National Bureau of Statistics and industry reports from leading real estate consultancies to enhance accuracy. This multi-faceted approach ensures that the findings reflect the real-world investment trends and preferences of China’s UHNWIs in the real estate sector.
1.2 Key Findings and Investment Trends
In 2025, China’s UHNWIs show a clear shift in real estate investment strategies, characterized by a move from blind expansion to rational allocation, with a strong focus on core assets and risk mitigation. Data from the research indicates that 68% of UHNWIs have adjusted their real estate portfolios, reducing holdings of non-core assets such as suburban residential properties and commercial real estate in third-tier cities by an average of 23%. Meanwhile, investments in core urban areas, high-end residential properties, and urban renewal projects have increased by 18% and 12% respectively. A notable trend is the growing preference for asset-light models, with 45% of UHNWIs choosing to invest through real estate investment trusts (REITs) and joint ventures, rather than direct property purchases. Additionally, 52% of respondents prioritize cash flow stability over short-term capital appreciation, reflecting a more cautious and long-term-oriented investment mindset amid ongoing market adjustments.
1.3 Implications and Market Outlook
The investment behavior of China’s UHNWIs in 2025 will have far-reaching implications for the country’s real estate market, driving further differentiation between core and non-core assets. Core urban areas with mature supporting facilities and policy support will continue to attract UHNWI investment, while non-core areas may face increased pressure from oversupply and declining liquidity. Looking ahead, 73% of UHNWIs plan to maintain or moderately increase their real estate holdings in 2026, with a focus on high-end residential properties in first-tier cities and urban renewal projects in core second-tier cities. Policy changes, including urban renewal subsidies and regulatory adjustments, will remain key factors influencing investment decisions. The market is expected to see a shift toward more professional and diversified real estate investment models, with UHNWIs increasingly relying on professional wealth management institutions to optimize their portfolios and manage risks effectively.
2. Overview of China’s UHNWI Group in 2025
2.1 Definition and Scale of UHNWIs
In this report, China’s UHNWIs are strictly defined as individuals with a net worth of over RMB 100 million, excluding liabilities such as mortgages and business loans, in line with international industry standards and Pridebay’s long-term research criteria. As of the end of 2024, the total number of UHNWIs in China reached 230,000, representing a year-on-year increase of 5.2%, a slight slowdown from the 7.8% growth rate in 2023, reflecting the impact of macroeconomic adjustments and industrial restructuring. Geographically, UHNWIs are highly concentrated in first-tier and core second-tier cities, with Shanghai, Beijing, Shenzhen, and Guangzhou accounting for 47% of the total, while Hangzhou, Chengdu, and Nanjing account for an additional 21%. The wealth sources of UHNWIs are becoming more diversified, with 37% derived from enterprise operation, 28% from wage income of senior executives, 22% from investment returns, and 13% from inheritance and other sources, marking a shift from over-reliance on real estate and manufacturing to a more balanced wealth structure.
2.2 Demographic Characteristics and Investment Preferences
China’s UHNWIs in 2025 have an average age of 44 years, with 62% aged between 35 and 50, a younger trend compared to a decade ago, driven by the rise of new economy entrepreneurs in the technology and finance sectors. Male UHNWIs account for 78%, while female UHNWIs account for 22%, with the latter showing a faster growth rate of 8.3% year-on-year, as more women enter high-income industries and inherit family wealth. In terms of education, 69% of UHNWIs hold a bachelor’s degree or above, with 23% having overseas education experience, which has shaped their global investment perspective. Investment preferences are characterized by a focus on stability and long-term value, with 71% prioritizing asset preservation as their primary financial goal, followed by reserve funds for major events and stable cash flow, both at 63%. Real estate remains a key component of their portfolios, but its share has declined slightly to 38% in 2025 from 42% in 2023.
2.3 Regional Distribution and Wealth Concentration
The regional distribution of China’s UHNWIs in 2025 reflects the uneven development of the country’s economy and real estate market, with significant concentration in economically developed urban agglomerations. The Yangtze River Delta region, including Shanghai, Hangzhou, and Suzhou, has the largest number of UHNWIs, accounting for 32% of the national total, followed by the Pearl River Delta region (27%) and the Beijing-Tianjin-Hebei region (18%). In contrast, central and western regions account for only 23% of UHNWIs, with most concentrated in core cities such as Chengdu, Chongqing, and Wuhan. Wealth concentration is further evident in the top 10% of UHNWIs, who hold 45% of the total wealth of the entire group, with their real estate investments mainly focused on high-end residential properties and commercial real estate in core urban areas. This regional imbalance is expected to persist in the short term, driven by differences in economic growth, industrial support policies, and real estate market vitality across regions.
3. China’s Real Estate Market Environment in 2025
3.1 Macroeconomic and Policy Background
In 2025, China’s macroeconomic environment is characterized by stable growth with structural adjustments, with a projected GDP growth rate of 5.1%, providing a solid foundation for the real estate market. The central government adheres to the “housing is for living in, not for speculation” policy orientation, while introducing targeted measures to support rigid and improved housing demand, including lower mortgage interest rates for first-time homebuyers and relaxed purchase restrictions in some second and third-tier cities. The Ministry of Housing and Urban-Rural Development has emphasized accelerating the construction of affordable housing and promoting the healthy development of the real estate market, while strictly regulating real estate financing to prevent systemic risks. Additionally, the central budget has allocated RMB 120 billion to urban renewal projects, a year-on-year increase of 35%, and an additional RMB 800 billion in ultra-long-term special government bonds has been tilted toward urban renewal, creating favorable policy conditions for related investments.
3.2 Market Supply and Demand Dynamics
The supply and demand dynamics of China’s real estate market in 2025 show significant differentiation across regions and product types. In first-tier cities, the supply of high-end residential properties remains tight, with a vacancy rate of 7.8%, lower than the national average of 12.3%, while the supply of suburban residential properties exceeds demand, leading to a decline in prices by an average of 4.2%. In core second-tier cities, the real estate market is relatively stable, with a balanced supply and demand for mid-to-high-end residential properties, while third and fourth-tier cities face oversupply pressure, with a vacancy rate of 18.5%. Data from the China Index Academy shows that the average deconstruction cycle of new residential properties in 30 key cities rose to 18.7 months in the first three quarters of 2025, an increase of 4.2 months compared to 2023, with suburban projects seeing cycles exceeding 24 months. Meanwhile, the transaction volume of old residential communities in core urban areas increased by 23% year-on-year, reflecting a shift in market demand toward core assets.
3.3 Price Trends and Market Differentiation
In 2025, China’s real estate prices show a clear trend of differentiation, with core areas rising and non-core areas declining. In first-tier cities, the average price of high-end residential properties increased by 5.3% year-on-year, with prices in core districts such as Jing’an District in Shanghai and Xicheng District in Beijing rising by 8.1% and 7.6% respectively. In contrast, the average price of residential properties in third and fourth-tier cities decreased by 3.7% year-on-year, with some suburban areas seeing declines of more than 10%. The luxury residential market shows a “counter-common sense” trend, with transactions of properties above RMB 50 million increasing by more than 60% year-on-year, while transactions of entry-level luxury properties (RMB 10-30 million) decreased by 22%. Shanghai dominated the ultra-high-end market, accounting for over 70% of transactions of properties above RMB 100 million, with 72 units sold in 2025, highlighting the strong demand for top-tier assets in core cities.
4. UHNWI Real Estate Investment Portfolio Allocation in 2025
4.1 Overall Allocation Ratio and Structural Changes
In 2025, real estate remains an important component of China’s UHNWIs’ investment portfolios, accounting for 38% of their total assets, a decrease of 4 percentage points compared to 2023, reflecting a more diversified asset allocation strategy. The structural changes in real estate portfolios are notable: the proportion of residential properties decreased from 65% to 58%, while the proportion of commercial real estate (including office buildings and retail properties) remained stable at 22%, and the proportion of industrial real estate and urban renewal projects increased from 8% to 15%. UHNWIs are increasingly reducing holdings of non-core assets, with 68% of respondents selling suburban residential properties and commercial real estate in third-tier cities, while increasing investments in core urban assets. The average allocation of real estate investment per UHNWI reached RMB 48 million in 2025, a year-on-year increase of 3.1%, indicating that while the proportion has decreased, the absolute investment scale remains stable.
4.2 Allocation by Property Type
Residential properties remain the primary choice for UHNWIs’ real estate investment, accounting for 58% of their real estate portfolios, with a focus on high-end residential properties in first-tier and core second-tier cities. Data shows that 73% of UHNWIs’ residential investments are concentrated in properties above RMB 10 million, with 41% invested in properties above RMB 50 million, reflecting a preference for high-value, scarce assets. Commercial real estate accounts for 22% of the portfolio, with investments focused on Grade A office buildings in core business districts and high-end retail properties in mature commercial areas, which offer stable rental returns. Industrial real estate and urban renewal projects account for 15% of the portfolio, a significant increase from 2023, driven by policy support and potential value appreciation. Urban renewal projects, in particular, have become a new focus, with 12% of UHNWIs’ real estate investments allocated to such projects, up from 5% in 2023.
4.3 Allocation by Regional Market
UHNWIs’ real estate investment allocation in 2025 is highly concentrated in core regional markets, with first-tier cities accounting for 57% of their total real estate investments, core second-tier cities accounting for 28%, and third and fourth-tier cities accounting for only 15%, a decrease of 8 percentage points compared to 2023. Shanghai, Beijing, Shenzhen, and Guangzhou are the top four investment destinations, accounting for 42% of the total real estate investment of UHNWIs. Shanghai leads with a 17% share, driven by its mature real estate market, strong economic fundamentals, and high-end property supply. Core second-tier cities such as Hangzhou, Chengdu, and Nanjing are gaining popularity, with investment growth of 14% year-on-year, as they offer relatively high returns and lower entry thresholds compared to first-tier cities. Overseas real estate investment accounts for 8% of UHNWIs’ real estate portfolios, with Hong Kong, Singapore, and the United States as the primary destinations.
5. Key Investment Trends of UHNWIs in 2025
5.1 Shift to Core Urban Assets and Urban Renewal
A prominent trend in 2025 is UHNWIs’ shift from non-core to core urban assets, with a particular focus on urban renewal projects in core districts. As the real estate market moves from incremental expansion to stock improvement, UHNWIs have quietly turned their attention to old residential communities in core urban areas, which offer policy dividends, scarce locations, and undervalued potential. Data shows that the proportion of UHNWIs’ real estate investments in core urban old residential communities has increased from 5% in 2023 to 12%, making it the fastest-growing asset category. For example, a private equity institution in Shanghai acquired 12 properties in three old residential communities in Jing’an District for a total cost of RMB 80 million, and after simple renovation, achieved an annualized return rate of 5.8%. Another investor in Shenzhen acquired 6 properties in a to-be-renovated community in Futian District, which saw a 120% increase in valuation after being included in the urban renewal plan.
5.2 Preference for High-End and Ultra-High-End Residential Properties
UHNWIs in 2025 show a strong preference for high-end and ultra-high-end residential properties, which are regarded as stable value-preserving assets amid market fluctuations. The transaction volume of residential properties above RMB 50 million increased by 62% year-on-year, while the transaction volume of properties above RMB 100 million reached 132 units (including new and second-hand properties), a year-on-year increase of 25.7%. Shanghai is the core market for ultra-high-end residential properties, accounting for over 70% of national transactions of properties above RMB 100 million, with 72 units sold in 2025. Projects such as Shanghai One Mansion and Kerry Jinling Huating launched multiple ultra-high-end units, with some top-floor duplexes priced above RMB 250 million selling out on the opening day. These properties are highly concentrated in core districts such as Huangpu, Xuhui, and Hongkou, reflecting UHNWIs’ recognition of the scarcity of core locations and top-tier product strength.
5.3 Rise of Asset-Light Investment Models
In 2025, UHNWIs are increasingly adopting asset-light investment models to reduce risks and improve liquidity, moving away from direct property purchases. Real estate investment trusts (REITs), joint ventures, and asset management products have become popular investment channels, with 45% of UHNWIs choosing to invest through these models. Chongqing has issued RMB 5 billion in urban renewal REITs, with underlying assets including renovated affordable housing and community commerce, offering an annualized return of over 6%. Additionally, UHNWIs are increasingly cooperating with professional real estate management institutions to undertake project operation and management, reducing their own management costs and improving investment efficiency. This shift reflects UHNWIs’ more rational investment mindset, focusing on cash flow stability and risk control rather than blind asset accumulation.
6. Factors Influencing UHNWIs’ Real Estate Investment Decisions
6.1 Policy Factors and Regulatory Environment
Policy factors are the most important external factors influencing UHNWIs’ real estate investment decisions in 2025, as the Chinese government continues to strengthen regulation of the real estate market to promote its healthy development. The “housing is for living in, not for speculation” policy remains the core guiding principle, with targeted adjustments such as relaxed purchase restrictions, lower mortgage interest rates, and increased support for urban renewal projects. The Ministry of Finance’s allocation of RMB 120 billion to urban renewal projects and the issuance of RMB 63.2 billion in special bonds for old residential community renovation have significantly boosted UHNWIs’ confidence in investing in urban renewal. However, strict regulation of real estate financing, including restrictions on corporate debt and personal mortgage loans, has also made UHNWIs more cautious about large-scale direct investments, prompting them to shift to asset-light models. Changes in tax policies, such as adjustments to property tax pilots, also affect UHNWIs’ investment decisions by increasing holding costs.
6.2 Economic Environment and Market Risks
The macroeconomic environment and market risks are key factors influencing UHNWIs’ investment decisions, as they directly affect the stability of real estate asset values and investment returns. In 2025, China’s macroeconomic growth remains stable, but uncertainties such as global economic fluctuations and domestic industrial restructuring have increased UHNWIs’ risk aversion. The slowdown in the growth rate of real estate prices in non-core areas and the increase in vacancy rates have made UHNWIs more cautious about investing in these regions. Data shows that 71% of UHNWIs regard asset preservation as their primary financial goal, reflecting their concern about market risks. The decline in the liquidity of non-core real estate assets, with the average holding period increasing from 5 years to 7 years, has also led UHNWIs to reduce their holdings of such assets. Additionally, the pressure of asset devaluation faced by some UHNWIs due to over-concentration in real estate has further strengthened their risk awareness.
6.3 Personal Demand and Wealth Management Goals
Personal demand and wealth management goals are internal factors that directly determine UHNWIs’ real estate investment decisions. The average age of UHNWIs in 2025 is 44 years, with many facing retirement planning and family wealth inheritance needs, making stable and long-term investment returns a key consideration. Data from the Hurun Report shows that 67% of high-net-worth seniors choose to retire in cities where their children live, with a preference for the “two doors, one bowl of soup” living model, which has driven demand for residential properties in core urban areas near their children’s homes. Additionally, 47% of UHNWIs plan to increase their allocation of insurance and 42% plan to increase their allocation of gold, indicating a shift toward more defensive assets, which also affects their real estate investment scale and structure. Wealth management goals such as asset preservation, cash flow stability, and wealth inheritance have become the core drivers of UHNWIs’ real estate investment decisions in 2025.
7. Risk Analysis of UHNWIs’ Real Estate Investment in 2025
7.1 Market Risk and Asset Depreciation Risk
Market risk is the primary risk faced by UHNWIs in real estate investment in 2025, mainly reflected in the differentiation of the real estate market and the risk of asset depreciation in non-core areas. With the deep adjustment of the real estate market, the gap between core and non-core assets continues to widen, and non-core assets such as suburban residential properties and commercial real estate in third-tier cities face significant depreciation risks. Data shows that the average price of residential properties in third and fourth-tier cities decreased by 3.7% year-on-year in 2025, with some suburban areas seeing declines of more than 10%. The vacancy rate of commercial real estate in non-core areas reached 22.3%, leading to a decline in rental returns. Additionally, the oversupply of new residential properties in some regions has further increased the risk of asset depreciation, with the average deconstruction cycle exceeding 24 months for suburban projects, making it difficult for UHNWIs to realize their assets in a short period of time.
7.2 Policy Risk and Regulatory Uncertainty
Policy risk and regulatory uncertainty remain important risks for UHNWIs’ real estate investment, as the Chinese government’s real estate regulation policies may adjust with changes in the macroeconomic environment and market conditions. Although the current policy focuses on supporting rigid and improved housing demand and promoting urban renewal, there is still uncertainty about future adjustments, such as the expansion of property tax pilots and stricter financing regulations. The introduction of new regulatory policies may increase the holding costs of real estate assets, affect the liquidity of assets, and even lead to losses in investment returns. For example, if property tax is fully implemented, the holding cost of high-value real estate assets will increase significantly, reducing the net return rate of UHNWIs’ investments. Additionally, changes in urban renewal policies may affect the progress and returns of related investment projects.
7.3 Liquidity Risk and Operational Risk
Liquidity risk and operational risk are also important risks faced by UHNWIs in real estate investment in 2025. Real estate assets have the characteristics of high value and long holding period, which makes their liquidity relatively poor compared to other assets such as stocks and bonds. In 2025, the liquidity of non-core real estate assets further declined, with the average time required to sell non-core residential properties increasing from 6 months to 10 months. For UHNWIs who need to adjust their asset portfolios or deal with emergency capital needs, poor liquidity may lead to forced sales at discounted prices, resulting in investment losses. Operational risk is mainly reflected in the investment of urban renewal projects and commercial real estate, which require professional operation and management capabilities. If the project operation is improper, such as delayed renovation progress or low rental occupancy rate, it will affect the investment return and even lead to project failure.
8. Case Studies of UHNWIs’ Real Estate Investment in 2025
8.1 Case 1: Urban Renewal Project Investment in Shanghai
A 45-year-old UHNWI from Shanghai, engaged in the technology industry with a net worth of RMB 500 million, invested RMB 60 million in an urban renewal project in Jing’an District, Shanghai, in early 2025. The project involves the renovation of an old residential community built in the 1990s, covering an area of 15,000 square meters, with a total of 8 residential buildings. The investor adopted a “batch acquisition + integrated renovation” model, acquiring 18 properties in the community at an average price of RMB 85,000 per square meter, with a total acquisition cost of RMB 48 million. The renovation work focused on adding elevators, updating underground pipelines, and adding parking spaces, with a total renovation cost of RMB 12 million. After renovation, the average price of the properties increased to RMB 102,000 per square meter, and the rental return rate increased from 3.2% to 5.6%. By the end of 2025, the investor had sold 6 renovated properties, achieving a profit of RMB 10.2 million, and retained the remaining 12 properties for long-term rental, ensuring stable cash flow.
8.2 Case 2: Ultra-High-End Residential Investment in Shenzhen
A 52-year-old UHNWI from Shenzhen, a real estate developer with a net worth of RMB 800 million, invested RMB 120 million in an ultra-high-end residential project in Futian District, Shenzhen, in mid-2025. The project is a high-end residential community located near a core business district, with a total construction area of 200,000 square meters, and the average price of residential units is RMB 150,000 per square meter. The investor purchased 4 top-floor duplex units with a total area of 800 square meters, with a total investment of RMB 120 million. The units are equipped with high-end supporting facilities such as a private swimming pool, a rooftop garden, and intelligent home systems, targeting the top-tier UHNWI group. By the end of 2025, the average price of the project had increased by 8.3% year-on-year, and the investor had received offers of RMB 130 million for the 4 units, achieving a potential profit of RMB 10 million. The investor chose to hold the units for long-term appreciation, considering the scarcity of ultra-high-end residential properties in Shenzhen’s core district.
8.3 Case 3: Asset-Light Investment in Beijing Commercial Real Estate
A 38-year-old UHNWI from Beijing, engaged in the financial industry with a net worth of RMB 300 million, adopted an asset-light model to invest in commercial real estate in 2025, investing RMB 45 million in a Grade A office building in Chaoyang District through a joint venture with a professional real estate management company. The joint venture acquired a 20% stake in the office building, with a total investment of RMB 225 million, and the UHNWI’s investment accounted for 20% of the total. The office building is located in a core business district, with a rental occupancy rate of 92% and an average annual rental return rate of 6.8%. The professional management company is responsible for the operation and management of the office building, including tenant recruitment, property management, and maintenance, while the UHNWI only needs to provide capital and enjoy the investment returns. By the end of 2025, the UHNWI had obtained a dividend of RMB 3.06 million from the joint venture, achieving a stable annualized return rate of 6.8%, avoiding the operational risks and liquidity problems of direct property purchases.
9. Conclusion and Future Outlook
9.1 Summary of Key Findings
This report comprehensively analyzes the real estate investment behaviors, trends, and risks of China’s UHNWIs in 2025 through a rigorous research methodology combining quantitative surveys and qualitative interviews. The key findings show that UHNWIs’ real estate investment strategies have shifted from blind expansion to rational allocation, with a clear focus on core assets, high-end residential properties, and urban renewal projects. The proportion of real estate in their total asset portfolios has decreased slightly to 38%, but the absolute investment scale remains stable, with an average allocation of RMB 48 million per UHNWI. Regional allocation is highly concentrated in first-tier and core second-tier cities, with Shanghai, Beijing, Shenzhen, and Guangzhou as the primary investment destinations. UHNWIs are increasingly adopting asset-light investment models to reduce risks and improve liquidity, reflecting a more cautious and long-term-oriented investment mindset.
9.2 Key Recommendations for UHNWIs
Based on the research findings and risk analysis, this report puts forward key recommendations for China’s UHNWIs in real estate investment. First, UHNWIs should focus on core assets in first-tier and core second-tier cities, avoid over-investment in non-core areas such as third and fourth-tier cities, and prioritize assets with scarce locations and stable cash flow. Second, they should actively participate in urban renewal projects, taking advantage of policy dividends and undervalued asset potential, but pay attention to project risks and cooperate with professional operation teams. Third, they should adopt diversified investment models, increasing the proportion of asset-light investments such as REITs and joint ventures to reduce liquidity and operational risks. Fourth, they should closely monitor policy and market changes, adjust their investment portfolios in a timely manner, and strengthen risk management to ensure the stability and growth of investment returns.
9.3 Future Investment Outlook (2026-2027)
Looking ahead to 2026-2027, China’s UHNWIs’ real estate investment will continue to focus on core assets and high-end segments, with the urban renewal market expected to maintain rapid growth driven by policy support. The proportion of real estate in UHNWIs’ total asset portfolios is expected to remain stable at around 37%-39%, with further optimization of the portfolio structure. The ultra-high-end residential market in core cities will continue to see strong demand, with prices expected to increase by 4%-6% annually. Asset-light investment models will become more popular, with the proportion of UHNWIs adopting such models expected to increase to 55% by 2027. Additionally, overseas real estate investment may increase slightly, with more UHNWIs focusing on mature markets such as Hong Kong, Singapore, and the United States to diversify risks. Overall, the real estate investment environment for UHNWIs will remain stable, with opportunities and risks coexisting, requiring more professional and rational investment decisions.
