The European continent has traditionally captured the attention of many property investors. Many factors are met, making it a coveted destination: strategic location, great historical and cultural heritage, proximity between capital cities, high quality of life, and an elevated level of corporate concentration.
Accordingly, it is not surprising that Spain -alongside the U.K. and France- is one of the larger estates preferred choices when purchasing residential properties. Thus far is deduced from The Wealth Report by Knight Frank. Australia and the U.S. are also added as large fortunes favourite top 5 with assets worth at least $30M (around €28M).
The report also indicates that during last year around 40% of large fortunes increased their estates due to investments in segments such as property or foreign currencies, among others. In addition to this, prospects among those asked (over 500 private bankers, wealth advisers, and family offices managers) improve by 70% for 2023 and are convinced their clients will increase their wealth this year thanks to property and technology investments.
Forecast trends for 2023
With only a couple of weeks into the current financial year, high interest rates will moderate demand when purchasing residential assets. About 21% of large fortunes wished to buy residential last year, only 15% will do so this year. Middle Eastern and Asian investors will take centre stage when buying second homes and even relocate to the aforementioned countries since their main focuses are healthcare, logistics, industry, and offices alongside rentals, the hotel and leisure industries.