One of the adages I was raised with is if you want to be successful, watch what successful people are doing. I would assume this would apply to investment real estate and the super rich do like to invest in real estate assets. The European rich like real estate the most holding 31 percent of their assets in properties and buildings. This would make sense as more people tend to rent than own in Europe. The United States has 19% of it’s private wealth in real estate.
The road to great wealth does flow through real estate, that we know. But it is interesting to see the well off are also focused on diversifying their assets in commercial and residential real estate.
Of the total private wealth of USD 27,770 billion, 19 per cent is held in real estate assets amounting to USD 5,328 billion, it said.
Europe’s super rich hold the biggest share of all privately owned real estate assets, followed by Asians.
Rich people in Europe hold 31 per cent of their wealth in real estate assets worth USD 2,391 billion, followed by Asia (27 per cent at USD 1,800 billion) and the Middle East (26 per cent at USD 880 billion).
“Global real estate is mostly residential and held by occupiers, but private owners are becoming more important in the world of traded investable property,” according to Yolande Barnes, head of Savills world research.
She said that since the North Atlantic debt crisis of 2008, sovereign wealth funds, wealth management companies, private banks and family offices have stepped into property deals that corporate bankers have deserted.
According to Savills, the total value of the world’s real estate is now around USD 180 trillion, 72 per cent of which is owner-occupied residential property. via The Times of India