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Commercial property investments are preferred by the world's ultra-wealthy over bonds and equities.

In 2019, the United Kingdom remains the most popular destination for foreign commercial investment.

According to the new Wealth Report 2020 from global property consultancy Knight Frank, private money accounted for $333 billion in commercial real estate investments in 2019, up 5% from the previous year. homes

Ultra-high-net-worth individuals (UHNWIs) reported that property remains the most appealing asset class as opposed to conventional equities and bonds, according to the annual Attitudes Survey conducted by the global real estate advisor.

Property will see 78 percent of respondents increase or retain their current allocations, ahead of bonds and equities, which will see 68 percent and 62 percent of respondents increase or maintain their current allocations, respectively.

Although 24 percent of global UHNWIs intend to invest in commercial real estate domestically, large sums of money are expected to be spent on cross-border acquisitions in the coming year. Specifically, affluent investors from the Middle East and Latin America account for 32% and 24% of all overseas commercial property opportunities, respectively.

The office sector remains the primary focus for private capital investors, with healthcare and hotels and leisure coming in second and third, respectively, as investors seek yield, return, and diversification in alternative property types. Investors are reallocating funds due to structural change and volatility in other key industries.

In 2019, the number of UHNWIs (those with $30 million or more in net assets) increased by 6%, bringing the total to over 513,200.

Knight Frank's head of capital markets analysis, William Mathews, says, "The amount of private capital invested in global real estate increased by 5% in 2019, from $318.6 billion in 2018. Investors are turning to commercial real estate as a way to boost returns and diversify their portfolios in the face of low and dropping yields on competing assets " Investors from the Middle East, Europe, and Latin America have the greatest desire to invest abroad, and the United Kingdom appears to be in line to earn the lion's share.

"While offices remain a primary focus for private capital, previously overlooked 'alternative' sectors are gaining traction, with $37 billion invested in hotels, healthcare, and retirement homes in the last year alone. As these industries mature, we expect this trend to continue."

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