In 2007, Asian participation in big-ticket commercial real estate deals was 22% of the market by value. Since 2010, it has averaged 50%. Most of this increase has been from the private wealth sector. At least 45% of all big-ticket real estate deals in Asia were made by private individuals and private companies.
It is perhaps unsurprising that the participation of private Asian wealth has been so great in real estate of late. Around 7% of all UHNWIs in the region made their fortunes from the sector. This is a higher proportion than in any other global region apart from Oceania. Asian UHNWIs have made more money from real estate than other nationalities.The average total wealth of those making money from real estate in Asia is US$610 million.
Most UHNWIs direct property holdings are homes (including multiple second homes). North Americans have overwhelmingly invested in this type of property and Asians too are similarly conservative in their direct property holdings. Other types of property are more likely to be held in companies and other investing vehicles than held directly.
Other nationalities have more significant direct holdings (up to 20%) of other types of property. Europeans and Oceanians are more likely to hold farms, estates, ranches. Likewise Africans will hold land: rural, resort or urban, in direct ownership and Latin Americans will hold commercial property directly. Middle Easterners seem to have around 17% of their directly owned property in a well-balanced mix of real asset types. It also has the highest average value at over US$35 million, while North American holdings are much lower in value, averaging US$5 million.