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Rich go gaga for real estate

By Judy Martel · Bankrate.com
Wednesday, March 12, 2014
Posted: 6 am ET

The world's super-rich are increasingly investing in property, resulting in more completed deals, according to research by Savills and Wealth-X. Private equity investment in real estate deals worth at least $10 million has tripled since 2009, and research firm Savills estimates that 35 percent of the deals in excess of $10 million were completed in 2012 because of private funding.

Private funding by the rich is resulting in more completed real estate deals.

Private funding by the rich is resulting in more completed real estate deals.

"In the world's leading cities, the willingness of private wealth to take the place of debt finance or to take a higher-risk development position is now making the difference between deals done or schemes mothballed," Yolande Barnes, head of Savills world research, said in a release.

Europeans are the most wild about real estate

Among nearly 200,000 of the world's wealthiest individuals, real estate accounts for approximately a fifth of invested wealth.

In North America, the rich only allocate 7 percent of their investments in real estate. That contrasts with Europeans, who hold 31 percent of their wealth in real estate, and Asians, who allocate 27 percent.

"In recent years there has been a tendency for (the rich) to focus on 'safe haven,' trophy properties for capital growth and wealth preservation," says Barnes.

Property and land have always been appealing investments for the wealthy. This gallery of the seven largest landowners in the U.S. notes that the top 100 have collectively added 700,000 acres to their holdings and now own 2 percent of the land in the U.S.

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