​Why the Rich Invest in Real Estate

Within an average portfolio of a millionaire, at least 35% of his wealth is invested in real estate and real estate projects, and as New York real estate star executive Solly Assa explains, this is especially a leading trend among Russians. After having gone through the worst year of the financial crisis, millionaires across the world are more noticeably buying houses, in order to protect the property from the fall of the financial market.

According to Assa, last year the number of ultra rich person’s with assets worth more than $30 million, fell by three percent. This is the first, but the sharpest annual decline since the financial crisis, and as many experts argue, the reason for that could be traced in the decline of raw materials, which led to volatility in the equity markets and slower economic growth.

In the last day of the year that went by, the world counted 187,500 rich people. This group of people controls $19.3 billion worth of assets, while the year before, they had 22 billion dollars in possession. If we take a look at those people with assets worth more than a million dollars, we would again see a noticeable decline, shares Solly in an interview for Inspirery. Recent reports show that last year this title was reserved for 13.3 million people, which is 300,000 less in 2014. However, the number of assets and real estate properties controlled by these people is still impressive.

Today’s millionaires across the world, control more than 66 trillion dollars, which is more than the value of all the world’s stocks. Solly Assa shared an example on his Twitter profile, in which last year’s decline of the number of millionaires is only an infamous episode, and by 2025 the world will have over 18 million millionaires. The biggest loss was recorded in Brazil, mainly because of the falling real value of the currency by a third. Thus, today Brazil now has 3908 people with a wealth estimated over $30 million, which is 12 % less than in 2014.