2 March 2016 – Expansión
The property sector is becoming a safe haven for HNWIs (High Net Worth Individuals), who are expected to increase their exposure to this business over the next ten years, at least that is according to the findings of The Wealth Report 2016, prepared by Knight Frank. The consultancy firm considers that, given the current economic context, characterised by global stock market volatility and low bond yields, the residential and commercial segments are the best option for this type of investor.
According to the study, the number of ultra rich people – those individuals with a net worth of more than $30 million, excluding their usual residence – decreased by 10% in Spain, compared with a decrease of 3% at the global level, mainly due to turmoil on the stock markets. Specifically, 467 ultra rich people live in Madrid and 227 live in Barcelona, down by 14% and 48%, respectively. In the case of Spain, the consultancy firm considers that, with attractive prices in comparison with other countries and clear signs of a strong, but sustainable, recovery, the real estate sector is gaining strength, as a clear alternative for this investor profile.
In terms of the impact of the current political situation, the CEO of Knight Frank España, Alberto Prieto, revealed that international investors have ruled out the possibility of a “pro-business” Government. Prieto warns that another option for Government, including Podemos, may have an impact on investment due to the fear of an effect on political security and he adds that “the worst thing” that could happen in this “perverse loop” would be a lack of clarity regarding the rules of the game.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake