Spain: a choice for real estate investments for affluent individuals.

The chosen ones of great wealth are selecting Spain. Thus, our country has become one of the preferred options for those with over 30 million dollars when purchasing real estate abroad, according to The Wealth Report by Knight Frank. Only the USA and the UK are ahead on the list of preferred locations.

A consulting firm's report names Australia and France as the two countries that complete the top five investment markets for wealthy individuals. In a year of macroeconomic uncertainty, like 2022, four out of ten wealthy people increased their wealth. According to this report, which surveys over 500 private bankers, financial advisors, and family office directors, expectations for this year are improving: more than 70% of respondents are confident that their clients will grow their wealth in 2023 through investments in real estate, technology, and stock markets.

However, the increase in interest rates will dampen demand for residential properties, with about 15% of wealthy individuals looking to purchase residential real estate this year, compared to 21% last year. Buyers from the Middle East and Asia will lead among those most inclined towards secondary properties and even permanent residency in the mentioned countries. "We believe that due to high liquidity and investor interest, the volume of investments in 2023 will not significantly decrease.

In the healthcare, logistics, industrial, and office sectors, real estate is at the forefront of billionaires' attention in 2023. The private rental sector (PRS) and hotels/entertainment complete the top five areas of interest. On the other hand, the wealthiest individuals are increasingly focusing on the energy source used (57%), the potential for renovation (33%), and the materials used and their carbon footprint (30%) when purchasing real estate as an investment. "With 68% of respondents expecting an increase in wealth in 2023, we anticipate significant changes in portfolio strategy, with a search for valuable opportunities in real estate. The downward pressure on property values due to high interest rates has created an opportunity for private equity, especially now as we enter this new phase of the market with historically low inventories of top-class properties in the residential and commercial real estate markets," adds Liam Bailey, Global Head of Research at Knight Frank.