More wealthy investors target property market

SOME of the world’s richest people are investing in regeneration schemes outside major cities, as their “hunger for property” grows, according to research from property consultancy Knight Frank.

The Knight Frank study found that private investors accounted for a quarter of all commercial property deals last year. Many of these transactions were funded by Ultra High Net Worth Individuals (UHNWIs), those with $30m in assets or more, through family-owned funds, companies or private offices. The results of the Knight Frank Wealth Report’s Capital Markets Survey show UHNWIs are looking beyond prime offices and retail space.

James Roberts, the chief economist at Knight Frank, said : “UHNWIs are adopting increasingly sophisticated investment strategies, and sometimes this approach involves the kind of active management previously restricted to institutions and funds.

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“Examples include refurbishment and development projects - where others may see down-at-heel neighbourhoods, he sees opportunities for regeneration and social change.

“If I had to pick a single word that could apply right across the global economy at this time it would have to be ‘uncertainty’. This is why investors are looking at real estate.”

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