Corona Virus creates Opportunity in the Real Estate Market for Billionaires
Wealthy investors are using the COVID-19 crisis as an opportunity to expand their portfolios in the real estate market. During this unprecedented time, there are many potential bargains to be made and opportunities to increase one’s allocations to property.
Cash-rich investors see real estate as an entity that will hold its value, and as a way to expand their wealth into diverse assets. This is especially important as the changes in different industries are quickly causing a shift in status. Investing in real estate encourages economic long-term success, tax breaks, and a stable cash flow.
David and Simon Reuben are British billionaire brothers who have been named the second richest family in the UK. Recently, the Reuben brothers bought 222 acres of land in Spain’s Balearic Islands. They plan to build 650 homes and a hotel in an exclusive neighborhood in Madrid. They also purchased a retail property in Manhattan, 609 Fifth Avenue, near the Rockefeller Center for around $170 million.
According to Bloomberg’s report, “Other wealthy investors are exhibiting a similar appetite for real estate. Almost half the 121 family offices surveyed by UBS Group AG are looking to increase their allocations to property as they hunt for opportunities and potential bargains, according to the Swiss bank’s Global Family Office Report 2020. The firms also expect to be more aggressive in putting their cash to work, with more than a third saying they plan to boost equity allocations.”
Although at the beginning of the pandemic the real estate market was put on hold, it is now a fruitful way for investors to continue expanding their assets. This time of turmoil opens the door on successful deals as prices drop and more people eager to sell.