Decline in millionaires in Germany: Real estate prices are falling!

Decline in millionaires in Germany: Real estate prices are falling!

Germany is facing a worrying trend: the number of dollar millionaires will drastically decrease in 2024. According to the current World Wealth Report 2025 According to Capgemini, the number of High Net Worth Individuals (HNWI) in Germany has fallen by more than 40,000, from 1.646 million to 1.605 million. This corresponds to a decrease of 2.5 percent. In return, countries such as the USA and Japan recorded significant increases.

However, the situation is completely different worldwide. Globally, the number of millionaires rose 2.6 percent to 23.4 million, and investable assets reached a record high of $90.5 trillion. North America and Asia were particularly successful, while Europe stagnated. The sharply falling real estate prices in Germany, which account for a significant portion of private wealth, are seen as the main cause of this decline. Cities like Munich, Frankfurt and Hamburg are particularly affected.

Conservative investments and their effects

Another important point that contributes to this trend is the conservative investment of many Germans, which leaves its mark on returns. In comparison, the share of shares owned by millionaires in Germany rose to around 22 percent, which is positive but not enough to reverse the overall trend. Gross domestic product (GDP) shrank by 0.2 percent last year, while the DAX rose by 18.6 percent in the same period.

Capgemini's report, launched in Frankfurt on Tuesday, highlights the massive differences between different regions of the world. While the number of millionaires in the USA rose from 7.431 million to 7.993 million, Europe, the Middle East and Latin America recorded a decline. Only in Africa was there a slight increase in the number of millionaires.

Outlook for future asset transfers

The “great wealth transfer” is estimated to pass about $83.5 trillion to younger generations by 2048, with 56 percent of those assets going to women. The next-gen HNWIs (Generations X, Y, Z) have new requirements for asset management: They demand more digital, flexible and growth-oriented approaches. The advice and digital services of banks and asset managers must therefore adapt in order to retain these customers. Trust, sustainability and individualization are becoming increasingly important.

Despite the decline in the number of millionaires, the total assets of all millionaires in Germany still rose by 0.5 percent to 6.32 trillion US dollars. This discrepancy shows that the decline does not necessarily mean a loss in assets: The FAZ highlights this development and the associated challenges for German prosperity.