Voice of Commonwealth

The world’s ultrarich to reinvest in the property market after a $10 trillion hit

Share

The global pandemic has brought unprecedented challenges to individuals, businesses, and economies worldwide. The ultra-rich, those with a net worth of $30 million or more, were not spared from the financial impact of COVID-19. According to a recent report, the world’s ultrarich suffered a $10 trillion hit last year. However, the report also advises that now is the time for these individuals to be greedy, particularly when it comes to investing in property.

The report, published by property consultant Knight Frank, states that the combined wealth of the world’s ultrarich dropped by 4.4% in 2020, with the pandemic being a significant factor in this decline. Many of these individuals saw their investments and businesses suffer as a result of the pandemic-induced economic downturn. However, the report predicts that these individuals will recover their losses by 2025, with their wealth expected to increase by 27% over the next five years.

Despite the significant losses suffered by the ultrarich last year, the report suggests that now is the time for them to be greedy, particularly when it comes to investing in property. According to the report, property has been a stable and consistent investment over the years, with long-term gains expected for those who invest wisely. The report advises that property investments should be viewed as a long-term strategy, with a focus on quality assets that are well-located and have strong fundamentals.

The report identifies several factors that make property an attractive investment for the ultrarich. Firstly, property investments provide a stable and predictable income stream, particularly for those who invest in commercial real estate. Secondly, property has historically been a hedge against inflation, providing protection against rising prices and preserving the value of capital. Thirdly, property investments have the potential for capital growth, with the value of quality assets expected to increase over time

The report also identifies several trends that are expected to impact the global property market over the next few years. One of the most significant trends is the continued growth of urbanization, with more people expected to move to cities in search of better opportunities and a higher quality of life. This trend is expected to drive demand for property in urban areas, particularly in the world’s largest cities.

Another trend that is expected to impact the property market is the growing importance of sustainability and ESG (Environmental, Social, and Governance) factors. The report notes that investors are increasingly focused on the impact of their investments on the environment and society, with sustainable investments expected to become more important in the years ahead. This trend is expected to drive demand for sustainable and eco-friendly properties, particularly in urban areas.

The report also advises that the ultrarich should consider investing in alternative property assets, such as healthcare facilities, student accommodation, and data centers. These alternative assets are expected to offer attractive returns, with strong demand expected in the years ahead. For example, healthcare facilities are expected to benefit from the growing demand for healthcare services, particularly in aging populations, while student accommodation is expected to benefit from the growing demand for education and the increasing number of students studying abroad.

In conclusion, while the global pandemic has had a significant impact on the world’s ultrarich, the property market continues to offer attractive investment opportunities. The report advises that the ultrarich should be greedy when it comes to investing in property, with a focus on quality assets that are well-located and have strong fundamentals. The report also identifies several trends that are expected to impact the property market over the next few years, including the continued growth of urbanization, the growing importance of sustainability and ESG factors, and the increasing demand for alternative property assets. By investing wisely in property, the ultrarich can recover their losses from the pandemic and continue to grow their wealth over the long term.

Read more

More News