A significant portion of the assets of wealthy individuals is preserved in real estate. This information is presented in the Knight Frank report: Knight Frank Wealth Report.
Square meters remain the primary investment tool for wealthy individuals. The statistics, against the backdrop of the popularity of cryptocurrencies and other investment instruments, look intriguing.
Data fr om the Knight Frank Report:
Private capital plays a crucial role in real estate investments: in 2023, it accounted for a record 49% of all commercial transactions. With wealth creation becoming positive again, the choices of wealthy individuals will increasingly influence real estate outcomes. This year, 22% of wealthy individuals plan to invest in residential real estate, and 19% in commercial real estate. The need for private capital to help repurpose and upgrade global properties has never been higher.
Majority of Wealthy Individuals’ Assets are in Real Estate
The statistics include ultra-high-net-worth individuals (UHNWI) with a net worth of $30 million or more. The data is based on a global survey of over 500 asset managers, family offices, and private bankers who oversee a combined total of $2.5 trillion in assets:
Investment Instruments of Wealthy Individuals:
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Residential Real Estate — 32%
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Commercial Real Estate — 14%
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Stocks — 18%
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Bonds — 12%
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Investments in Art, Wine, Watches, etc. — 5%
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Gold — 2%
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Cryptocurrency — 1%
These data highlight that real estate remains a key element in the portfolios of wealthy individuals due to its stability and potential profitability. Investments in residential and commercial real estate help diversify risks and provide passive income, making them attractive in conditions of economic uncertainty.
What Options to Use if Funds for Purchasing Real Estate are Insufficient?
There are various opportunities in the foreign real estate market for long-term property purchases and even self-sufficiency:
For example:
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Installments from Developers are available in all projects in Turkey, Dubai, and Northern Cyprus. Generally, this refers to installments until the end of construction or a few years post-completion. Some offers allow installment payments after project completion, with the possibility of repaying installments through property rentals.
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Mortgages for Foreigners are also an option. Recently, this option was reinstated in Turkey, wh ere a mortgage can be obtained for up to 10 years.
Example of a Profitable Real Estate Investment in Turkey:
In a new project Blue Sunlight 2 Residence by Stay Property in the popular Mahmutlar, installments are available with a minimal initial payment of just 20%. Interest-free installments are provided for 2 years. A 2% discount is offered for a 50% payment, and a 5% discount for 100% payment. The project is suitable for obtaining citizenship.
Why Turkey is Still Chosen Despite Rising Prices
The yield of resort real estate in Alanya is 7-10% per annum in euros. In wealthy cities around the world, an average and normal rate is considered 4-5%. Meanwhile, in 2024 in resort Turkey, you can buy a property with a living room and one bedroom for €75,000 – €100,000, already renovated and with hotel infrastructure in a residential complex. In mid-range and premium complexes, prices start from €150,000 at the launch of sales by top developers with unquestionable construction and management quality. Such a property will remain liquid for a long time.
Adding to the rental yield of 7-10% is the price increase of 10-20% per year upon project completion, depending on location, format, and quality of the residential complex. Thus, the actual income from rental and price increase is at least 17-20% per annum in euros.
In Turkey, a foreign buyer has the same documents for the property as a citizen, and ownership includes not just the apartment square meters but also part of the land under the residential complex. There is full property ownership, no nuances in property ownership, no construction on leased land, and no legislative risks.
Where Else Can You Find Such Prices and Real Estate Yield? In Northern Cyprus!
How to Choose the Right Residential Complex
How to ensure that the infrastructure is maintained at a high level after commissioning, the quality of construction remains visible over the years, and the rental yield is maximized? Find out the answers at a free consultation by asking your questions in an online chat with our expert.