The Wealth Report 2020, Knight Frank’s annual flagship research publication that offers our view on the big issues affecting our clients and their advisors.
The 2020 edition casts its eye over how the concept of wellbeing is becoming increasingly influential in all aspects of our lives, from the investments we make to the places we choose to live. The insight provided by the report’s many different contributors, including the influential investor Jim Mellon, is both fascinating and thought provoking.
Of course, the report also features its usual in-depth guides to the performance of the world’s luxury residential markets and the commercial investment sectors that are increasingly being explored by private investors, as well as the results of Knight Frank’s Attitudes Survey, which this year is based on US3.3 trillion of private wealth.
Responding to the global real estate adviser’s annual Attitudes Survey, ultra-high-net-worth-individuals (UHNWIs) confirmed that property remains the most attractive asset class when compared to traditional equities and bonds, due to its relative stability and higher returns.
Of those surveyed, 78% are set to increase or maintain their current allocations to property, ahead of bonds and equities, which saw 68% and 62% of respondents seeking to increase or maintain investment, respectively.
Whilst 24% of global UHNWIs plan to invest in commercial property domestically, significant amounts of capital are set to be allocated to cross border purchases in the year ahead. Notably, 32% of wealthy investors from the Middle East and 24% from Latin America are targeting overseas commercial property opportunities.
The office sector remains the primary target for private capital investors, with healthcare and hotels and leisure following closely in second and third, as the market is seeing investors looking to alternative property types in the hunt for yield, return and diversification. Structural change and uncertainty in other core sectors is prompting investors to reallocate funds.
Download the Wealth Report 2020 to read in full.