USA, UK and Spain, favourite destinations for the wealthy to buy property

Where in the world are the wealthy buying homes?

Spain has become one of the top choices for high net worth individuals when it comes to buying homes abroad, behind only the United States and the United Kingdom, according to Knight Frank’s The Wealth Report. So, where in the world are the wealthy buying homes? We have the details.

Spain is closely followed by Australia and France, the other two countries that complete the list of the top five investment markets for high net worth individuals with more than $30 million (28 million euros).

In an economic downturn year like 2022, 4 out of 10 high net worth individuals increased their wealth, thanks in part to their investments in real estate, but also in foreign exchange, tactical investments in financial markets, and, for the first time in a decade, preserving much of the liquidity in portfolios amid the equity and bond turmoil.

According to the report – which polled more than 500 private bankers, wealth advisers and family office managers – expectations are improving for this year, with more than 70% of respondents convinced that their clients will increase their wealth by 2023 thanks to their investments in real estate, technology and the capital markets.

However, higher interest rates will temper demand for residential property, with around 15% of these wealthy individuals looking to buy residential property this year, down from 21% last year.

Middle Eastern and Asian buyers will take the lead among those most likely to undertake second home investments, and even take up residence in these countries, with healthcare, logistics, industrial and office sectors the main targets for billionaires in 2023, alongside private rental and hotels and leisure.

On the other hand, the wealthiest wealthy are increasingly considering the source of energy used (57%), the opportunity for refurbishment (33%) and the materials used and their carbon footprint (30%) when buying real estate as an investment.

Source: Idealista.

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