Wealthy investors choose Spain for real estate

Spain is chosen to lead the way among the big wealthy. Thus, our country has become one of the preferred options for those who have more than $30 million to buyreal estate abroad, according to The Wealth Report from Knight Frank. Only the United States and the United Kingdom are in the front of the list.

A consulting firm places Australia and France in the top 5 best investment markets for high net worth individuals. In a year of macroeconomic uncertainty such as 2022, a quarter of the top wealthy have increased their wealth.

According to a report that asked more than 500 private bankers, financial advisors and office directors of family wealthy individuals, expectations are improving this year, with more than 70% of those surveyed confident that through their investments in real estate, technology and capital markets, their clients will increase their wealth in 2023.

An increase in interest rates will reduce demand for residential real estate, with around 15% of the top wealthy looking to buy residential property this year, up from 21% last year. Buyers from the Middle East and Asia will be the most active in making investments in second homes and even setting up their residence in the mentioned countries.

"We believe that due to the great liquidity and investor interest, the volume of investments will not decrease significantly in 2023.

Health, logistics, industry and offices

the top goals of billionaires in 2023. Private rented accommodation (PRS) and hotels/entertainment round out the top five areas of interest.

On the other hand, the wealthiest people are increasingly looking at the energy source used (57%), the ability to renovate (33%) and the use of materials and their carbon footprint (30%) when buying property as an investment.

"With 68% of respondents expecting to increase wealth in 2023, we foresee a significant shift in portfolio strategy with a search for opportunities in the real estate market. The downward pressure on property values due to higher interest rates has created opportunities for private equity, especially now as we enter this new phase of the market with residential and commercial real estate inventories historically low for best-in-class properties," adds Liam Bailey, global director of research at Knight Frank.