_Wealth Report 2018: Investors chase commercial property assets across the world’s super cities
Wealth Report 2018: Investors chase commercial property assets across the world’s super cities
Lifestyle
The latest issue of The Wealth Report, launched today, examines the solid fundamentals underpinning record levels of private buyer interest in commercial real estate as investors chase assets across the world’s super-cities.
A robust global economy with synchronised regional growth is supporting the dynamics of the world’s commercial property markets. Investors, both private and institutional, continue to see real estate as an attractive part of their overall investment portfolios.
But how does commercial property stack up against other recognised asset classes that typically make up portfolio allocations of ultra-high-net-worth individuals (UHNWIs)? The infographic below shows property is the second most popular investment (56%) when stacked up against assets such as cash, gold, and bonds.
Appetite for real estate continues to increase globally as investors grapple with the global low-yield, low-return environment as well as showing signs of shifting allocations away from some fund types such as hedge funds. In addition, there are worries around perceptions of stretched valuations across many publicly traded bonds, while record-breaking equity markets are making some nervous. As a result, money is moving towards alternative investments, with real estate a prime target for a large proportion of this capital because of its relatively high yield.
You can see how property investments were allocated in 2017 by region and city in the full version of the Wealth Report. In addition, the publication features research into global wealth trends and flows, explores the world’s wealthiest regions, the best performing cities for Ultra-High-Net-Worth investors, and the fluctuations of the world’s luxury residential property markets.
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