World trends in real estate

Asia and Africa with their high concentrations of UHNWIs will play an increasingly important role in real estate investment.

21 January 2014, Words by Yolande Barnes

 

Among those UHNWIs who have made their money from real estate, there is a higher concentration of very high levels of wealth in Asia and Africa than in the Americas and EMEA. The higher proportion of near-billionaires in these regions points to the likelihood of continued growth in UHNWI numbers and, consequently, to their increasing importance in the sphere of global real estate investing.

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The appetite for real estate as an investment class by Asian individuals in particular means that the phenomenon of privately invested real estate will continue to grow as the number of Asian UHNWIs grows.

Our analysis suggests that this, in turn, will mean higher activity in development land and private cross-border activity generally.

There is a big question as to whether private wealth can continue to grow as a proportion of all big ticket real estate investment. It would seem that it has played a bigger part in the past within the totality of cross-border deals.

Given that the number of UHNWIs is due to grow fastest in Asia, it is the investing preferences and attitudes of this group that will determine how this trend develops in future. Because of Asia’s greater propensity for both real estate purchase and overseas investment in real estate, we expect the proportion of private wealth participation in cross-border deals to grow.

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Key Contacts

Yolande Barnes

Yolande Barnes

Director
World Research

Savills Margaret Street

+44 (0) 20 7409 8899

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883