High net worth investors snapping up more real-estate assets in 2014

Even the ultra-rich are abandoning the chase for high returns.

Ultra-rich investors are shying away from the chase for high returns and focusing on safe assets, with real estate becoming an increasingly popular choice.

According to a survey commissioned by Principal Global Investors, real estate has become notably popular among high net-worth investors, showing an increase of nearly 25% in investor interest, from 37% in 2012 to 61% in 2014.

Real estate’s popularity has also surged among DB investors, increasing by 26%, from 40% in 2012 to 66% in 2014 while infrastructure has experienced an equally significant increase of 23%, from 43% to 66%.


“The financial crisis taught investors a number of lessons, but a key takeaway for all was greater caution. Investors have become more risk-aware and more agile than ever before. In 2013, the quest for yield was evident. In 2014, as caution has become more embedded in the investor psyche, investors have recalibrated their return expectations. While the debate around active versus passive has been resurgent, the real focus of the industry should be on adapting investment solutions to the new goal-oriented and risk-adverse mind-set of investors worldwide. Customisation is the name of the game,” said Andrea Muller, CEO of Principal Global Investors Asia.
 

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