77% of investors with a minimum of $1 million in assets own real estate. For millionaires across America, commercial and residential real estate is the preferred alternate-asset investment endeavor for 2014.
1/3 of millionaires that were surveyed by Morgan Stanley
aim to invest in real estate in 2014, according to Bloomberg
. 23% report they will invest in real estate investment trusts.
The rebounding real estate market is becoming more and more attractive to wealthy investors, as fixed-income yields remain historically low and equities surge. Commercial property values rose 8% in 2013 and have soared an impressive 71% since hitting their post-recession bottom in 2009, research firm Green Street Advisors
, Inc. reports.
ginger martin and co real estate wine country napa valley sotheby's homesAs reported in our blog posting last summer, investors are snapping up luxury real estate sight unseen. Manhattan high-rise condominium buildings One57
and 432 Park Avenue
, where units have gone under contract for more than $90 million, are further evidence that the very wealthy have a tremendous amount of faith in the real estate market. Foreign investors have particularly taken notice and are aggressively purchasing luxury properties from Napa Valley
to Miami Beach.
In the Bay Area, luxury home sales figures reached new heights last year, according to the SF Business Times
. These sales figures were in part spurred on by the tech boom and the new millionaires created by tech companies such as Google
. Quick stats: sales of homes greater than $2 million rose by 28% in comparison with 2012 and sales of homes greater than $1 million rose by a whopping 40.6%. This is the highest increase reported since 2007.
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