Wealthy Investors Turn to Real Estate Once Again

As reported int the Wall Street Journal, a survey was published this week that showed wealthy investors have a renewed appetite for real estate. This has been seen in the increased sales data for luxury oceanfront condos in South Florida from Miami to Fort Lauderdale.  In the past 12 months there have been 434 oceanfront condos sold priced over $800,000.  250 luxury oceanfront condos close over $1 million this year.

The survey from Barclay’s Wealth revealed that wealthy investors expect to increase their asset allocation to real estate. Over the next two years, 35 percent of respondents plan to increase the proportion of real estate in their portfolios (not including their primary residence), while 48 percent plan to maintain their current allocations. The main reason that investors give for the increase is that they believe real estate offers better long-term prospects than other asset classes.

Outside their own countries of residence, most investors consider the U.S. to be the most attractive real estate market.

A survey of 2,000 investors world-wide with investible assests of more than $800,000 showed that 75% of respondents felt residential real estate is an attractive investment.

About half of those surveyed expect an increase in the value of their real estate investments over the next two years. Almost 40% of those with assets over $50 million have over 50% of their portfolio in real estate.

The survey also revealed that half the women found investing in real estate less risky than men and enjoyed real estate investing more than men.

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