Tweet
a survey of world cities by Savills published this month and released exclusively to House & Home, points to the key role that wealthy individuals are playing in world property markets by rescuing development from the ravages of the financial crisis. According to the report, more than half of all major global real estate deals are now led by private individuals, in contrast with the debt-based model of property finance that collapsed when banks stopped lending to property groups.
“Since the debt crisis they [private individuals] have stepped into the property deals that corporate bankers have deserted,” the report states. In 2012, about 35 per cent of global big-ticket deals – defined as $10m-plus – were only possible because of private funding. “The willingness of private wealth to take the place of debt finance, or to take a high-risk development position, is now making the difference between deals done or schemes mothballed,” the report says.
“Since the debt crisis they [private individuals] have stepped into the property deals that corporate bankers have deserted,” the report states. In 2012, about 35 per cent of global big-ticket deals – defined as $10m-plus – were only possible because of private funding. “The willingness of private wealth to take the place of debt finance, or to take a high-risk development position, is now making the difference between deals done or schemes mothballed,” the report says.
Comment