If it comes to managing the own assets, choosing an investment form plays a crucial part for the investor. According to the results of a British study, the popularity of real estate investments is thereby rising further – despite a lower year-on-year price growth on the most important global markets.
In the poll, which asked several hundred private bankers and investment advisers with a total volume of managed assets by over three billion US dollar, the asset class real estate led the field with an average share of 32 percent. Although this share amounted to 21 percent, if first and secondary residences weren’t taken in consideration. Stocks follow on second place in the portfolios, which have been invested in by 27 percent on average.
Major investors, whose individual assets amounted to at least 30 million US dollar, increasingly shift their investments towards “concrete gold”. Because while 37 percent decreased the stock share in their deposits partly due to the stock market turbulences at the end of the year, the number of real estate holdings rose: From 2.9 properties on average in 2017 to 3.6 in the previous year.
The strategy to choose real estate as an investment focus paid off: Around two thirds of all respondents witnessed an increase of their clients’ assets in 2018 – only 16 percent stated a decrease in prosperity. Various investment advisers confirm this trend: According to their observations, interest grows to raise the ratio of real estate in the portfolios.
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