Every fourth multimillionaire plans to purchase real estate this year

As much as 26 percent of multimillionaires are planning to buy real estate this year, wrote HRE Investments expert Bartosz Turek in an analysis, citing Knight Frank's research.

Turek said the study was conducted on the basis of a survey of 600 private bankers serving the world's croissants, whose total wealth exceeds $3.3 trillion. Last year – as the analyst pointed out – 20 percent of multimillionaires invested in real estate, i.e. almost as many as declared (21 percent).

He noted that among buyers, there is clearly an increase in demand for coastal and rural properties. He indicated that buyers are now paying more attention than before to the fact that the new house allows for entertainment, physical activity, and work from home.

"However, the importance of easy movement has decreased. In addition, an important reason for buying real estate for one's own needs has recently been the desire to improve living conditions or buying a holiday property," Turek stated.

He noted that villas and residences that allow remote work, but also have cinemas, a gym, or are packed with modern electronics, are particularly popular.

Turek added that 18 percent of the multimillionaires' wealth is frozen in flats, apartments, houses, or mansions used only for their own needs, while another 21 percent are real estate purchased for investment purposes.

The analyst also pointed out that the types of real estate in which the wealthiest want to invest have completely changed over the last year. In 2020 the offices, healthcare-related real estate, and the hotel and entertainment segment were at the forefront. Today, the interest in flats for rent, which is considered a safe and stable sector, that provides predictable growth rates also in periods of economic downturn, has increased the most.

(PAP)