According to Knight Frank’s The Wealth Report 2021 released today, private capital has been undeterred by the Covid-19 pandemic and has continued to invest in commercial real estate around the world. 

The volume of private capital invested globally was circa $232 billion – 9 percent above the ten-year average, albeit down on 2019 levels. 

Looking forward, the Knight Frank Attitudes Survey highlights that a quarter of ultra-high-net-worth individuals (UHNWIs) plan to invest in commercial real estate assets in 2021. 

“There are a number of drivers set to shape markets throughout 2021 – the move to safe havens – large, relatively liquid, transparent markets should continue to attract global investment; global travel disruptions also provide an opportunity for private investors to leverage understanding and ties to more local markets, which under usual circumstances might face larger competition for assets by institutional investors; ESG – something private investors cannot afford to ignore and the rise of data centers – where there is huge potential for investment opportunities,” Victoria Ormond, capital markets research partner at Knight Frank, said.

"Commercial real estate provides investors with a relatively high yielding stable income return, the potential for capital value growth and diversification. These are all key drivers in preserving wealth for future generations and protecting against the impact of the global pandemic,” Alex James, Partner, Head of Private Client Advisory, Commercial, added.

(WBJ)