Investment in big ticket real estate deals by private individuals has risen more than 111 percent in the last five years, with Asian investors leading the surge.
A new report by real estate services firm Savills, in partnership with Singapore cosultancy Wealth-X finds that while corporate real estate investments have increased 43 percent since 2008, real estate acquisitiosn in excess of US$10 million by the world’s wealthy rose by 111 percent in the same period.
A report published Friday in London’s Financial Times looked into Savills analysis of the trend.
It’s a case of push and pull factors,” says Yolande Barnes, director of residential research at Savills. “I just saw a list of the top dealers [relating to deals made in 2013, compiled by Real Capital Analytics] on the buy side and the sell side. You look at the sellers and you’ve got JPMorgan, Lehman receivers, Deutsche, all the big bank names . . . and on the buyer side, the new big names are private Chinese companies and US Reits [real estate investment trusts].
The Savill’s report found that for Europe’s super-rich (defined as people with net assets of $30 million or more) eight percent of their wealth was typically held in real estate, with only six percent for North Americans, but for Asia’s multimillionaires, an average 28 percent of their net assets were in property.