The Super Wealthy invest hundreds of billions of dollars into Real Estate



Wealthy individuals and their investment firms have continued to pour money into real estate in the past year, despite the pandemic’s effects on the sector.

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Wealthy individuals and their investment firms have continued to pour money into real estate in the past year, despite the pandemic’s effects on the sector. According to Knight Frank's 2023 Prosperity Report, the super-rich have spent a total of $455 billion on commercial real estate investments such as office buildings, rental apartments and logistics real estate, making it the most actively traded customer in the past year. 

The Super Wealthy invest hundreds of billions of dollars into Real Estate

This is in stark contrast to institutional investors, whose total real estate investment in the $1.1 trillion commercial real estate sector has declined by 28% year-on-year due to rising defaults from high interest rates. The pent-up demand from the wealthy since the pandemic began has pushed their spending on the real estate market to record levels, reflecting their long-term investment strategies.

Examples of these investments include the former director of Zara buying 5 logistics real estate networks in the US with a total value of more than 700 million USD in September 2022 and a luxury apartment in Seattle for $ 300 million in December 2022. Mr. Joe Tsai, co-founder of Alibaba, also bought 6-7 5-star hotels in Spain through the investment fund Blue Pool Capital.

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According to the report, most of the super-rich will focus their investments on rental real estate in 2022, mainly in the US. New York, for example, has received investments of more than $25 million from the wealthy in the past year.

The Super Wealthy invest hundreds of billions of dollars into Real Estate

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