This Paris Life

Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris

U.S. millionaires favor real estate over other types of alternative investment

Real estate is in a class of its own when it comes to investment in alternative asset classes (i.e. not stocks, bonds or cash), a recent survey by Morgan Stanley reveals. Of U.S. high net worth (NHW) investors with $1million dollars or more in financial assets, 77% own real estate, while 35% own Real Estate Investment Trusts (REITs).

Real estate and REITs are top of the list by a wide margin. Next on the list cited by millionaires are collectibles (34%), precious metals (28%), private equity (27%), real assets (oil, gas and mining, 17%), private real estate funds (16%), hedge funds (16%), and venture capital (13%).

Morgan Stanley’s Wealth Management Investor Pulse Poll periodically surveys HNW investors. During the 4th quarter of 2013, Morgan Stanley polled 1,004 U.S. investors aged 25 to 75 with at least $100,000 in assets. One third had more than $1 million: the survey poses questions about alternative asset classes only to that group.

When asked what they expect to buy in 2014, 33% of millionaire investors named real estate and 23% named REITs. Collectibles (20%), private equity (19%) and precious metals (16%) came further down the list of priorities.

With fixed-income yields staying low and equities becoming expensive, wealthy investors are looking at real estate as an alternative to provide capital returns and rental income.


You might also like:

Now is the time to buy prestige property in Paris, say real estate pundits

Commercial real estate remains a good bet in Paris

Paris is one of the “super-cities” that attracts worldwide commercial real estate investment

Avenue Montaigne ranks in the Top 10 Most Expensive Streets Worldwide

Low interest rates in France sustain demand for properties in Paris

Contact Paris Property Group to learn more about buying or selling property in Paris.

Find us on
Get the PPG Monthly newsletter

Contact us
By phone
In France +33 (0)9 75 18 18 99
From the US (917) 779-9950
By email
Stay current on the Paris real estate market:
Sign up for our newsletter
Thank you for subscribing!
* Required fileds